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Self Cert Mortgages

Self cert mortgages seem to have been in the news quite a bit recently. The concept behind a self cert mortgage is relatively simple, though it does seem to confuse many consumers.

Who are self cert mortgages for?

Self cert mortgage products are designed for those people who wish to take out a mortgage but who are unable to verify their earnings.

There are a number of reasons why a borrower may have trouble proving their earnings, with one typical example being someone who is self employed. In effect, with a self cert mortgage, the borrower declares how much they earn. It should be noted that making false income claims on a mortgage application is a criminal offence.

Are there additional checks?

Some mortgage companies now ask for additional checks to be carried out, rather than taking the applicant's word for it that they earn what they say they do.

Additional verification may take the form of credit checks, or contact with a self employed individual's accountant.

How much can you borrow?

There are usually limits in place on how much you can borrow with a self cert mortgage. At the time of writing, many mortgage lenders will restrict the Loan To Value (LTV) to 85%, though it is possible to find lenders who are prepared to loan slightly more.

Mortgage Basics

1. Fixed Rate Mortgages Explained
2. Variable Rate Mortgages Explained
3. Capped Rate Mortgages Explained
4. Self Cert Mortgages
5. How do Mortgage Terms work?