What does self certification actually mean?

If you are self-employed, you may simply not be able to prove your income in a form acceptable to a mortgage lender. An example could be no formal or recent accounts or accounts prepared by someone without the prescribed qualifications. You may also be an employed or self-employed person who has some buy to let or investment properties.

Whilst originally intended for the self- employed, the concept has now been extended to incorporate the employed market. For example, those who derive a large proportion of income from non-guaranteed sources such as bonuses, commissions and other allowances. A self-certification mortgage is ideal in this situation, as the lender will normally allow 100% of such income into the affordability calculation.

Traditionally, most high street mortgage lenders have taken a cautious view of the self-employed or others who find it difficult to confirm their income. Moreover, fluctuating bonuses or commissions might not be considered as permanent income and excluded from the affordability calculation altogether.

Lenders that operate in the self-certification market will use a similar method of underwriting to the mainstream lenders. However, as they do not ask a potential borrower to prove income, a slightly larger deposit is required to reduce the perceived risk from a lenders perspective. In all cases, it is essential that the borrower can afford to service the loan on an ongoing basis.

There are many places to go when looking for a self cert mortgage. There's the high street, the internet, financial papers and magazines etc. This will mean you have to visit many places to get an idea of who offers the best mortgage for you.

However, if you visit an independent mortgage broker they have access to all the mortgage schemes and can easily source the one that is right for you. If you can find an independent mortgage centre then you can sit down with the mortgage specialist to discuss exactly what you need.

An independent mortgage broker will be able to offer all types of loans such as purchases, remortgages, buytolet, first time buyer, capital raising, self cert, poor credit mortgages for people who have been refused a mortgage.

Even discharged bankrupts or those people with complicated credit problems can find help at an independent mortgage broker. And you won't get that with a high street lender!