FINANCE SUPER MARKET

Self cert mortgage is for people who are unable verify their income by producing a series of wage slips. For such people income may come from a variety of sources, or it may be that they, as self-employed, have not been trading long enough to have accounts for the required period. Another possibility is that they may have a low basic salary and achieve high income through commission, bonuses, dividends or a second income.

Self cert mortgage covers a wide range of people and the trend is increasing. The self certification mortgage market is currently booming. If you have been self employed for a short period you may find your options are more limited. Because you work for yourself the major lenders see you as a risk, they are worried you will not be able to keep up your repayments if your business slows or even folds.

In many cases the actual income of the applicant may have been minimised for taxation purposes. Self-employed workers, for example, may utilise various tax minimisation techniques in order to save on income tax and company tax. When it comes time to apply for a mortgage their actual earnings may be understated, leading to a situation in which they are able to borrow a smaller amount than they can actually afford.

In addition to this, many self-employed workers do not keep accurate or complete records of income earned and therefore may not be able to supply several years of trading accounts to lenders upon application for a mortgage. This can make it difficult to secure a full-status mortgage from a high-street lender.