Self Certification Mortgages

What is a self certification mortgage?

A self certification mortgage is a mortgage that is offered on the basis of you stating what your likely income will be, rather than providing documentary evidence - however you may be asked by your accountant to provide evidence of previous income as a method of cross reference.

There are currently around 15 different lenders that are prepared to offer mortgages to self employed people and the current market place is getting more and more competitive, which will hopefully lower prices and rates in the long term for those looking to self certify.

In the short term, you are likely to pay more for your self certification mortgage due to the fact that statistics show that most businesses fail within the first 2 years of trading.

It is important to check out each self certification mortgage, as some are better than others, and if you think that cashflow could become a problem, some mortgage providers offer payment holidays and the facility to pay more money when possible. It is advisable to see a mortgage broker who can explain all of the pitfalls and advantages to certain self certification mortgages, however you must ensure that they are regulated under the mortgage code.

Self certification mortgages normally require a slight different level of deposit compared to normal mortgages, such as a loan value of 90%. It is becoming more common to be offered 75% if the value of the house.

If you want any more information about mortgages, please feel free to contact us - we will be more than happy to help. Alternatively, why not use our Leeds Mortgage Review system to find your perfect mortgage?