A self-certification mortgage is basically a mortgage for individuals who cannot prove their income. Instead of proving their income borrowers state what their income will probably be. A mortgage is then given on this foundation. However a mortgage dealer may need evidence of accounts and bank statements to support the claims, made by a potential borrower. Due to the risk attached in a self-certification mortgage they often attract a greater interest rates. Also to get a self-certification home loan, it is usually necessary to give a larger deposit. However if you can have put down a 25% deposit then your rates may become more competitive and only a bit more expensive than a standard mortgage.
Self-Certification mortgages are good for individuals who are self employed and don't have a regular pay check starting the bank. It can also be good when you have income from various sources and for different reasons find it hard to prove their income. A self-certification mortgage is referred to as a non standard mortgage. The number of firms offering self-certification mortgages is increasing and thus the market is becoming more competitive. Often a self-certification mortgage can be used as a temporary measure to help get about the housing market. After a few years you can switch to some more standard mortgage deal with a better rate of interest.
Investigation into Self Certification Mortgages by the FSA
A BBC programmer aired in 2003-2004 alleged which self-certification mortgages were being abused with borrowers encouraged to lie about their income to get a bigger mortgage. They also went on to express that these inflated incomes were a significant reason for the booming housing market.
Self-Certification mortgages are good for individuals who are self employed and don't have a regular pay check starting the bank. It can also be good when you have income from various sources and for different reasons find it hard to prove their income. A self-certification mortgage is referred to as a non standard mortgage. The number of firms offering self-certification mortgages is increasing and thus the market is becoming more competitive. Often a self-certification mortgage can be used as a temporary measure to help get about the housing market. After a few years you can switch to some more standard mortgage deal with a better rate of interest.
Investigation into Self Certification Mortgages by the FSA
A BBC programmer aired in 2003-2004 alleged which self-certification mortgages were being abused with borrowers encouraged to lie about their income to get a bigger mortgage. They also went on to express that these inflated incomes were a significant reason for the booming housing market.
