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.
