Self Certification

Self Certification mortgages are designed for people who have a good income which is not easily proved i.e, self employed, company directors, contract or agency workers, people with multiple income streams or those employed but heavily dependent on bonuses/commission. All of these types of employment may make it tricky to get a normal ‘full status' lender to understand just what your income is. 

Self Certification - how does it work? Just like any other loan or mortgage application with self certification mortgages you are required to declare what you actually earn and how you earn it. Unlike other loan or mortgage applications with self certification mortgages you are not normally expected to provide detailed accounts, tax documents or payslips to confirm your declared income. Often a phone call by the lender to your accountant or employer to confirm your stated employment is sufficient.

By not checking your income, the self certification lender is taking a greater risk that you may not be able to afford the mortgage in the future. To reflect this increased risk, a self certification mortgage lender will typically charge a higher interest rate and expect a larger deposit. 

Remember although it's self certification, you are required to state honestly what your income is on the application form and sign to confirm this is factually correct. You are responsible for any information recorded on the application form, so resist the temptation to give yourself a huge pay rise on the basis it wont be checked. Whilst self certification lenders do not have a standard policy of checking incomes declared, random checks are done and lenders also apply a plausibility rule. If you work on the tills in a supermarket its fair to say your not on a salary of £100,000!

If you are considering a new mortgage or remortgage, please feel free to contact us to talk with an Independent Financial Adviser and Mortgage Broker. We are able to provide home appointments across the whole of West Sussex - Brighton, Hove, Haywards Heath & Crawley, East Sussex, Surrey - Croydon Sutton, Reigate, Redhill,  South London - Wimbledon, Fulham, Chelsea and Hammersmith and Central London.

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