Non-Status Mortgages
If you cannot provide any proof of income or you have no credit record, then you are considered to have non-status.
A non-status mortgage who needs it?
Non-status mortgages are offered by lenders to borrowers who do not have...
- Previous mortgage history.
- Proof of income.
- No credit history.
This means the lender does not need to investigate your employment or income status. This type of mortgage is particularly suited to the self-employed.
Mortgages offered without any of these requirements have a maximum loan to value (LTV) of 70%.
You will be needing a self-certification (or self cert) mortgage if you have no financial status (non-status) this could be because you are :-
- Self employed
- A Contract worker without a regular income.
- Seasonal Worker
- Unsalaried (Bonus driven, commission driven etc...).
The interest rate for non-status borrowers will be at a higher rate than traditional mortgage agreements.
Non Status Can I Still Borrow
Even if your credit history is a little tarnished, mortgages of up to 70% are still available. It is possible to arrange a non status mortgage even if you have been turned down elsewhere or are self-employed.
There are many non status mortgage lenders who will assess your situation without using set criteria. This allows your individual circumstances to be taken into account when processing your mortgage application.
It is possible to arrange a non status mortgage without any proof of income or proof of mortgage history.
Non Status Mortgages - were initially created for the self employed they are now known as self cert or self certification rather than non-status
Non status mortgages apply to anyone who finds it difficult to prove their income. this could be for a few of the following reasons
You may own your own business and organise your finances in such a way that your net income appears to be less that it actually is.
- If you have been in business for lass than three years or if you have recently launched a new business.
Business owners that have a full set of accounts for three years or more will not need a non-status mortgage. - Proving your income could be difficult. if you are on a contract or the bulk of your income comes from commission.
- You may also receive a large proportion of your income from trust funds, stocks and shares or investments
Non status mortgages offer a alternative to a traditional mortgage for people who have difficulty proving their income and helping them to get on the property ladder.
During a non-status mortgage application a lender will take up to 50% of commissions into account or they calculate the average of the last three years, this can work against the borrower. Non status mortgages allow you to self-certify your own income.
The non status mortgage inevitably has a higher interest rate than a normal mortgage this is because the lender is taking a risk on a self certified income. Deposits of around 20% are usually required, however if you income is what you say it is then you should have these kinds of funds available.