Self Certification Mortgage
Self certification mortgages were introduced over a decade ago and were predominantly designed mainly for those who had a reasonable amount of deposit but were unable to show their true earnings, in most cases the self-employed.
For the self-employed, normally " two years" accounts would be required and in many cases these were not always at hand but even if they were, the whole point of their accounts would be to save them tax, but most lenders will look at net profits.
Today, the self certification market has grown to include both the employed and the self-employed.
By putting down a minimum deposit of 10% a number of specialist lenders will allow clients to self certify their income and therefore not look into it any further but each lenders criteria varies and some will require letters or certain promises from the accountant. Self Certification makes the buying of property easier for a section of the market that has long been ignored and extremely under-rated.
Care should be taken however, as you might imagine, it is not always as simple as it seems plus affordability problems can occur if interest rates go up and your payments are increased by the lender. To stop this from happening, our advice is to get a good 3 - 5 year fixed rate.
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