| Self cert mortgages
are something you may have heard about but not have any experience
of. Self cert mortgages or remortgages for that matter were
pretty much designed for the self employed person. This was
because when applying for a mortgage or remortgage, proof of
income is always required. For the self employed they would
need to supply normally 3 years audited accounts to the lender.
The lender will look at the net profit, this can make a problem
for the applicant as the gross figure will always be higher
than the net figure, but the lower figure will be used, this
figure often will not be enough. Some lenders will look at the
last 3 years net profits and use an average of those 3 years;
if one of those years was bad then that could also lower the
amount you may like to borrow.
A self cert application takes into consideration that self
employed people do have incomes from different sources as
well as understanding that legally the self employed do reduce
their gross income by off setting allowable expenses for tax
reasons. There are also self cert mortgage options for the
employed, there are people say for instance, recruitment consultants
who earn a small basic, but some of them earn huge bonuses
and commissions, they may earn 100,000 but the bank will ask
them for their basic and work from that, if their basic is
20,000 then they won't get too far unless the rest of their
earnings are catered for.
With a self cert mortgage, it largely comes down to the price
of the property and the amount of deposit or in the case of
remortgages the amount of equity you have in the property,
that decides if your case can be self cert or not. You self
certify your total annual income yourself, so there normally
is no further evidence required. I would always recommend
getting Independent Advice. Alongside that, if you fit the
lenders criteria and the property survey shows the property
you are buying is ok then it should be fine. Self cert mortgages
can be also arranged for those that may have adverse or bad
credit, so that is covered.
Self cert mortgages are competitively priced and can be arranged
with a deposit or equity of 10%.
Self Cert mortgages are also known as Non Status mortgages,
the principle is the same but there is a slight difference
between the two.
Self Cert Mortgages Caters for:-
People with more than one income.
People who cannot prove their incomes
People who get bonuses (seasonal, weekly etc)
Self-employed and unsalaried company directors
Contract workers
People who work on a commission basis
People who have multiple incomes.
First Time Buyers
Remortgages
Buy To Lets
Let To Buys
Ex Bankrupts (Discharged)
People with existing arrears on their accounts (credit card,
mortgage etc)
If you own more than 20% of your Company's shares you will
be classed as self-employed.
Personally I have always thought it a bit of an insult that
it is easier for a salaried employee to get a mortgage, than
his boss who is running the Company.
Self Employed people will find that often a self cert mortgage
may well be the best way for them to get the mortgage they
require.
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