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 - Mortgages for the UK self-employed
It is estimated that self-employed mortgage market accounts for nearly 10% of all UK mortgages.
Self-employed mortgages are available as
• Mortgages or re-mortgages.
• Fixed and flexible interest rates.
with a self-employed mortgage however the interest rates are usually higher than for a standard mortgage.The self-employed mortgage market
There are many barriers that stand in the way of the self-employed when trying to obtain a mortgage in the UK. For the self-employed in the UK, paying a much higher rate of interest because they have to lend money of their own UK bank is not uncommon. And as for proving your income, when you are self-employed even having a certified accountant doesn't mean you can provide three years of accounts required to obtain the self cert mortgage by most UK banks.
A self-employed mortgage acceptance is usually dependant on you providing a substantial deposit on your new home normally 20%. Of course if you are self-employed and have profitable business it is expected that you will have substantial capital behind you to cover such a deposit.
A self-employed mortgage can be abused an applicant, they may lie about their income and attain a mortgage that is unaffordable. In some cases a self-employed applicant may be claiming from their assets a depreciation, meaning that although they have good payments, transactions and turnover their net income may appear low so they would want to self certify their actual gross income and their assets.
Some lenders may also consider self-employed applicants with poor or adverse credit history or an a bad credit rating. this is called NON-STATUS.
UK Self Cert Mortgages for the employed and self-employed, Problem and Non Status Mortgages from Finance Centre UK.
Self-employed mortgage schemes are not only available to people who are Self-employed but also...
• Fully employed.
• Seasonally employed (hoteliers, theme Parks).
• Employed but not salaried (commission based).
• self-employed taxi drivers.
• Freelancers.