How Much Can I Borrow with a Self Certifying Mortgage?

NOTE: the information below on self–certification mortgages is out of date. Since it was written, the Financial Conduct Authority, the UK regulator, now requires lenders to check affordability when receiving a mortgage application. Therefore UK mortgage lenders no longer offer self–cert mortgages as such. To comply with the regulations, they have the right to ask for proof of income to assess the affordability of a mortgage in all cases when you apply for a regulated mortgage contract. If you are unsure if you will qualify for a mortgage you should always seek advice from a suitably qualified mortgage advisor . Here’s the historic content. We’re leaving it online for the record.

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Self-certifiying mortgages are intended to solve the affordability problem for people who can’t prove their full income and have previously been offered too little by conventional lenders. For example:

• Salesmen whose earnings are mostly commission – commission and bonuses are often ignored by mainstream lenders.
• Self-employed people whose accounts are optimised for tax, showing an apparent profit that is much less than their income.
• Employed people with their own profitable part-time business

The income multiples for Self-certifiying mortgages are usually the same as for full status mortgages – anything from 2.5x – 4.5x.

Self certifiying mortgages are not designed to be a way of borrowing more than you can afford – they simply allow people to borrow the amount they know they can afford.

 

Where Can I Get A Self-Certifiying Mortgage?

NOTE: the information below on self–certification mortgages is out of date. Since it was written, the Financial Conduct Authority, the UK regulator, now requires lenders to check affordability when receiving a mortgage application. Therefore UK mortgage lenders no longer offer self–cert mortgages as such. To comply with the regulations, they have the right to ask for proof of income to assess the affordability of a mortgage in all cases when you apply for a regulated mortgage contract. If you are unsure if you will qualify for a mortgage you should always seek advice from a suitably qualified mortgage advisor . Here’s the historic content. We’re leaving it online for the record.

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The self-certification mortgage market is a little more specialised than the mainstream mortgage market, and many of the most competitive specialist lenders do not have a high street presence.

Instead, these lenders deal through approved independent brokers who are able to search the market for the most competitive mortgage for each borrower.

Although there are some high street lenders who offer self-certified mortgages, they are not able to provide the choice of policies offered by the specialist lenders.

To read more on this subject please see the list below or your mortgage guide or your home buying guide

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