Non Status Mortgages : Non-status and Self Employment
Non-Status is how it sounds, but this is only in the eyes of the personal finance community, your financial status is determined by your financial past, if you do not have one you may be considered a little more of a risk than someone who has received and repaid personal finance loans e:g mortgages credit cards, personal loans this is where the “non-status” tag comes from.
Having no status however could be worse than having a bad or poor credit history, your current financial status as regards you incoming and out goings are more important to lenders.
The reasons for non-status are few such examples include:-
- School/College Leavers.
- Ex army.
- Immigrants.
- Self Employed.
- Tax Exiles.
Self Employed.
As regards the self employed they account for a large proportion of non-status applicants this is because they do not have 3 years of earning assessed by a certified accountant, this lack of “proof of income” can give an applicant a non-status tag, this can extend to people on short term contracts or other unusual forms of pay or employment status.
Self Certificate Mortgages
Self Cert Mortgages were a revolution for people like the self employed who had difficulty proving their earnings. this self confidence that has run through the self employed community led to large increase of this type of mortgage, of course mortgage lenders wern’t giving mortgages away they usually required a large deposit of 20+% similar to that of a commercial mortgage, a lender would assume that if you were in a good enough financial position to apply for a mortgage you would have a substantial amount of capital behind you.
How to self certify a mortgage application
You simply submited you incomings and out goings and the lender would base a amount they could lend you in these figures (less the deposit of course) .
Non-Status
People with No financial status can apply for self Cert mortgages also , such people include
- No credit history (Ex-army, new to the country)
- Bad Credit
- Unsalaried (sales or commission based)
- Seasonal Employees (Holiday reps, hoteliers etc)