What is Self Cert? | Who Qualifies for self cert | self-employed | Non-status | Self Certifying a mortgage | Self Cert Rates
Mortgages & Loans Self Cert Mortgages - UK Self Cert Non Status Mortgages
In this section we will outline in detail what a self cert mortgage is.
What is Self Cert?
A self cert mortgage is also known as a non-status mortgage. Non Status
is you have CCJ's or Mortgage Arrears or no credit history at all.Flexible self-cert mortgages are well suited to the self-employed and others with income that can fluctuate. Flexible mortgages are also ideal for those who expect to receive large sums over long periods. A Flexible self-cert mortgage also allows you to make overpayments, underpayments and payment holidays and sometimes you can draw funds in a time of financial instability.
The self-employed
Self certification for the employed, self-employed, newly self-employed, seasonal workers, sub contractors.
If you have been in self-employed for less than three years and therefore cannot provide the necessary accounts or you are without a fixed income , you will need to declare your income without proof of accounts. This is known as self-certification. Because you are declaring your income without an examination of your accounts "self certifying", a certified accountant's certificate and your business bank statements will be needed to certify that your income meets the terms and conditions of the mortgage loan required.
Using your current mortgage statements (if you have one), you will be able to show how reliable your mortgage payments have been. If you are a tenant, you can need to ask your landlord to provide you with a reference to certify that your rental payments were always punctual.
Self Cert Lenders
Mortgage lenders will look at your credit history as well as considering your job and living history by running a full credit check on you. while this sounds a bit draconian it is a key feature of a self cert mortgage application, because lets face it, you could be a bad credit risk. If your credit rating, is bad then subprime lenders may be needed to attain a self-cert mortgage.
Sub Prime Mortgage Lenders (Non standard subprime mortgages.)
A company may lend to a person who is unable to borrow money secured on a property from a traditional lending source. This represents part of the problem mortgage market, many people may not be offered a mortgage by a high street lender, because of just a few things...
- You could be on record as having adverse credit.
- You could have arrears on an existing mortgage.
- You could be unable to certify your income to a high street lender.
As with all self cert or problem mortgages the rates will be higher than a conventional mortgage.