Self cert mortgages are available to clients who cannot verify their income instead you certify your income by declaring it on the application form meaning you do not need to provide any proof of income.
They are specifically designed for people whose earning capacity is difficult to assess using the normal practices adopted by most conventional mortgage lenders. These mortgages are available on both residential and commercial property.
Originally only available to the self employed, Lenders have realised there is a demand for the same service from Employed customers who do not wish to prove their earnings by means of payslips or a P60 and instead would like to take advantage of a self-cert mortgage. The chief draw to a self-cert mortgage is that incomes may be declared without accounts to back them up.
Bad Credit
self-cert mortgages can be arranged for those that may have adverse or bad credit. The rate will be a higher but with little or no adverse credit, the interest rate on self-cert mortgages is likely to be a little higher than normal mortgage rates.Additionally, in most cases a bad credit report won't affect your ability to qualify.
Property
With a self cert mortgage, it largely comes down to the cost of the property and the deposit amount (or in the case of re-mortgages the amount of equity you have in the property), as to whether your case can go self-cert or not. A self-cert mortgage can be used for all the usual purposes, property purchase, home extension, debt consolidation, to pay a tax bill, fund raising for a business venture, holiday home purchase or for investing in buy to let property.
You can borrow up to 90% of your property value – the lower the percentage you require the better the rate you can obtain.
Lenders
Lenders usually compute the amount approved for self-cert mortgages based on the borrowers regular expenses and financial circumstances. Lenders will ask you to sign a declaration that you have the ability to make repayments on your mortgage. Some self-certification Lenders will simply ask you to state your "total income"; others will simply ask you to sign an "affordability declaration" stating that you can afford repayments.
Your Application
You will need to declare the reason for wanting a self-cert mortgage to the Lender on the application and sign an additional declaration to confirm your income from all "acceptable sources".Many self-cert mortgage Lenders incorporate this self declaration statement into the actual mortgage application form.
Conclusion
self-cert mortgages are attractively priced and there are a wide range of products to suit most customer requirements. You can have access to thousands of mortgages and some Brokers have the ability to negotiate exclusive deals with a huge range of Lenders. Whatever your employment situation, you can most likely find a self-certification mortgage to suit you.
If you're looking for a low cost, high saving, UK Self Cert Mortgage try Glow Mortgages. We offer a fast and easy mortgage broker service and all applicants are welcome poor credit or not.
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