Self-cert loans/mortgages

Self-cert loans/mortgages
 

These days, lenders are now more careful with applications from clients that are not accompanied by PAYE payslips, or accounts in the case of self-employed, the result is they have either reduced the number of self-cert mortgages they make available or simply vacated the market entirely.

increasing numbers of lenders are placing priority on lower-risk prime mortgage business, with deposits from clients in place, and proof of income.

according to industry figures, there were around 40 self-cert lenders on the market at the end of 2007 with some 900 or so different deals available, by contrast there are now few if any lenders around willing to offer self-cert mortgages.

those lenders who do remain in the self-cert mortgage market, often require potential borrowers to confirm their ability to afford the loan, this confirmation may include an in depth interview with a loan adviser to assess whether the application is viable.

with an accountants verification of self-employed status, a loan will then be based on the mortgagee net disposable income, this often increases the likely hood of a successful self-cert mortgage application.

applying for a self-cert mortgage is not a cause for worry, there are ways to ensure you are viewed as being a good self-cert risk for a lender to issue a mortgage to.

be entirely honest with your application, particularly in relation to income, do not for example claim bonus payments as part of your regular wage.

negative issues can lead to you being required to pay a higher percentage as deposit to secure your mortgage, with self-cert mortgages being 1% above normal mortgages you can find yourself being priced out on the ability to afford a self-cert mortgage.

candace2finance.com/mortgages

Prepaid card

PREPAID CARD


prepaid cards can protect you and; your bank account, they are ideal if you have agreements with creditors or simply like to shop on line, they are an excellent budget tool.

Paying for items or services with a normal credit or debit card means you are engaged in what is called a * ''continuous payment agreement'', what this means is your agreement cannot be cancelled either by you, your card company or your bank, it can only be cancelled by the receiver of the payment.

if therefore you are using a normal credit/debit card to make on line payments, then in effect your bank account, access to it, plus all of your income/savings are under the control of a third party and not YOU or your BANK.

a prepaid card limits the amount that can be taken as you only have to load it with what you want to spend, with a pre-loaded amount, you also avoid any further unauthorized deductions form your card, you can also simply dispose of the prepaid card if you wish and get a new one.

industry figures show that as much as 73% of people never check their credit card bills on a regular basis.

any opening amount placed on your prepaid card is yours to spend when you activate your prepaid card

* relates to UK law



candace2finance.com/banking