A self certification mortgage is a mortgage in which you are able to declare your income without showing substantial proof that you earn it. There are many instances where a self certification mortgage would be beneficial.
If you are self employed, a self certification mortgage is appropriate if:
- You lack three full years of trading accounts.
- You have accounts but your income has been minimized for tax purposes or
- Your current earnings are significantly greater than your accounts can prove.
Alternatively, self certification mortgages can also be appropriate for regularly employed individuals if:
- You have irregular income in the form of commissions or bonuses.
- You have multiple jobs (for example if you run a business part time and also work as a salaried employee) or
- You are a contract or seasonal worker.
Generally, if you have any sort of difficulty proving your income, then a self certification mortgage could be the solution for you, though it should be noted that by not being able or willing to provide evidence of income you may be disadvantaging yourself as interest rates for a self-certified mortgage are normally higher than for a mortgage where your income has been verified.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of £100 payable at the outset and £100 payable when you apply for a mortgage. We will also be paid a procuration fee from the company that lends you money.
The Financial Conduct Authority (FCA) does not regulate some forms of mortgage.