Non-status mortgages are designed for those who either cannot prove their income or who are afflicted by adverse credit. "Non-status mortgages" is a term that's loosely used to describe all mortgages that aren't standard high-street mortgages.
Non-status mortgages for self-employed workers are also called "self-certification mortgages". This category of non-status mortgages require individuals to convey their income to the lender without having to provide proof as pay slips and other records of earnings.
The self-certification kind of non-status mortgages usually require the borrower to fund a bigger deposit that for standard mortgages. They are also recognized to attract slightly higher interest rates than standard home loan products. In recent years, however, with non-status mortgages becoming more and more popular, the interest rate disparity has lessened.
Borrowers who are afflicted by adverse credit may also apply for non-status home loans. Adverse credit mortgages are a different type associated with non-status mortgages than self-certs, however they normally still need a deposit and attract premium interest rates.
The amount of interest charged on this kind of non-status mortgages will depend on the level of adverse credit the applicant is wearing their credit history. Light-adverse applicants may only be asked to pay a slightly higher interest rate than debtors of standard mortgages, while heavy-adverse applicants may be asked to pay an interest rate several percentage points greater than people with a clean credit file.
Non-status mortgages for self-employed workers are also called "self-certification mortgages". This category of non-status mortgages require individuals to convey their income to the lender without having to provide proof as pay slips and other records of earnings.
The self-certification kind of non-status mortgages usually require the borrower to fund a bigger deposit that for standard mortgages. They are also recognized to attract slightly higher interest rates than standard home loan products. In recent years, however, with non-status mortgages becoming more and more popular, the interest rate disparity has lessened.
Borrowers who are afflicted by adverse credit may also apply for non-status home loans. Adverse credit mortgages are a different type associated with non-status mortgages than self-certs, however they normally still need a deposit and attract premium interest rates.
The amount of interest charged on this kind of non-status mortgages will depend on the level of adverse credit the applicant is wearing their credit history. Light-adverse applicants may only be asked to pay a slightly higher interest rate than debtors of standard mortgages, while heavy-adverse applicants may be asked to pay an interest rate several percentage points greater than people with a clean credit file.
