Finance Articles

What is a Self-Certification Mortgage?

A Self-Certification mortgage is a mortgage designed for people who are unable to provide proof of income. This type of mortgage was originally designed for the self employed who historically experienced difficulty obtaining a loan with 'high street' lenders due to not having audited accounts available.

If you are unable to show your earnings due to being self-employed, a seasonal wage earner, or anyone with irregular earnings such as a contract worker or commission-based employee, or in salaried employment with a supplementary source of income, an unsalaried company director, or varying other reasons - a Self-Certification mortgage could be the best option for you.

Self-certification mortgages allow borrowers to certify their own earnings without having to supply documentation, such as payslips. With a self-certification mortgage you declare what your income is but generally you do not need to provide any proof. You can apply if you are employed or self employed.

Self-Certification mortgages have also found favour with salespeople and other workers who receive a high proportion of their income as commission or bonus. Even though you may have achieved high earnings this way for years, commission or bonus may still not be considered in calculations by high street lenders.

Self-certification can also be suitable for professionals who often start on a low salary, but whose incomes can rise rapidly.

Self-certification mortgages are suitable for applicants whose income is not easily verifiable, like the self-employed or those that receive commissions. If you're self-employed, a contractor, have irregular income or multiple jobs, you are probably one of many who know you can afford a mortgage but have difficulty proving your income.

Self-certification mortgages are also quite good for people just starting out in a new career with good steady income and a fair amount of deposit behind them.

Self-certification mortgages are ideal for self employed people who perhaps have not been in business for the required three years or cannot produce accounts for a three year period but can demonstrate usually through an accountant's reference that they can meet the mortgage payments.

When applying for a self-certification mortgage you will be required to state your expected annual earnings. The mortgage will be offered on the basis of your likely income rather than you having to provide any documentary evidence.

Self-certification mortgages used to require a higher deposit of up to 25%, but now some lenders can offer up to 90% loan to value. Self-Certification mortgage lenders will usually lend up to three and a half times declared income or two and three quarter times joint income. However, with a deposit of 25% or more a Self-Certification mortgage can usually offer up to five times your declared earnings.

Self-Certification mortgages carry a higher rate than standard mortgages because statistics show most businesses fail within the first two years of trading. So if you were to be left with heavy debt there is a possibility you could lose your home. However, some self-certification mortgages are better than others, and, if cash flow is a problem, it's worth checking out those that offer payment holidays and the facility to pay more when you can.

Fortunately there are a number of competitive self-certification mortgage products available, depending on your circumstances and individual requirements. Self-Certification mortgages are now supported by an ever increasing number of mortgage lenders, including mainstream as well as specialist lenders. Interest rates charged are now far more attractive.

Self-Certification mortgages have become increasingly popular in recent years. However, you should always remember that you will be asked your income on the application. Just because you are in a self certification situation, you should only put down your actual income. To do anything else would not only be fraud, but could also mean that you are unable to afford your mortgage repayments, especially if mortgage rates rise in the future.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Real Estate Financing - What You Should Know Before Getting A Home Mortgage
If you have a lot of bad credit because of consumer debt like credit cards or personal loans, you'll want to try to eliminate or reduce this debt before you apply for any real estate financing, since it will affect your ability to qualify for a home mortgage and to make the estimated monthly payment. When you're buying a home, getting a home loan and the best mortgage rate is the most important step in the whole process; you'll need to understand the basics about real estate, loans, mortgages, current mortgage rates, and points to get your real estate financing in place.

Accounts Receivable Financing- How to Use Other People?s Money to Finance your Growth
?Accounts Receivable Financing- How to use Other People?s Money to Finance your Growth? explores how to accelerate your cash flow if you have a business that sells products or services to other businesses. If your customers are creditworthy, but slow to pay your invoices, you may benefit by using accounts receivable financing with a commercial finance company to accelerate your cash flow for exponential growth.

Asset Based Financing, Alternative Ways of Financing, Large Commercial Real Estate Projects
Traditional financing provides much needed funding to advance major commercial or other tangible projects, and it is particularly beneficial to companies that plan months in advance. But what happens when funding is required immediately or clients have minimal experience? Asset-based financing can help clients avoid the complexities involved with traditional financing methods.

Personal Finance - Three Quick & Simple Ways To Improve Your Personal Finances
Many Americans and people in countries where ready credit is available find themselves in greater debt then ever before and this makes you wonder whether you are working for yourself or for your creditors. This ends up being a problem of financial spending & control and if you take a short moment to reconsider your own financial health, you might be able to correct your financial situation today.

Real Estate Investment Success Series Tip #2- Three Keys To Successful Investment Real Estate Financing
This article is part of the Real Estate Investment Success Series and continues from http://www.realestateinvestment101.info/Making_Money_with_Real_Estate.html

Real Estate Financing - Home Mortgages - Time Tested Tips
You don't want to jump into anything blindly or sign a real estate contract or home mortgage loan contract or any type of contract without giving it some serious thought. Watch out for anything that appears to be vague. You want to keep in mind when financing real estate that lenders will be able to tell you only what you might be able to afford based on your current not future salary and level of debt including your credit card debt. First of all you'll need to find a lender for your real estate financing and potential residential, home or other type of investment.

How To Avoid Negative Equity In Real Estate Investment Financing
Real Estate Investment Financing is simply industry jargon for a real estate investment loan. In a bad property market where rental yields are low, the most dreaded word that you can say to a real estate investor is negative equity. So what is negative equity? It is a situation which arises when the foreclosed value of your property is less than the price that you paid for it and in certain states like in New York, the mortgagee (the bank) can then bring a deficiency action against the owner to reclaim the difference.

Glenmere Capital Partners, LLC Commercial Real Estate Finance and Investment Firm Launched
Ruth Barone and Bryant D. Bernhardt, both longstanding participants in the commercial real estate finance industry, have announced the formation and launch of Glenmere Capital Partners, LLC.

100% Single Loan Financing with No Mortgage Insurance, Now Available to Real Estate Investors
100 percent single-loan financing with no mortgage insurance is now available to real estate investors.

Finance Your Real Estate Investment Properties
Unlike traditional residential real estate mortgages, real estate investment financing is way more creative and offers more options than you think. The golden rule in real estate investment is OPM (Other People's Money).

Getting Financing From Banks For Real Estate Investing
People investing in real estate look for capital providers, who will offer the level of capital they need as well as the rate, term, pricing, closing time frame, exit and prepayment options, and recourse provisions. These must suit their individual needs, as well as any value added features on the offer. Choose a capital provider with whom the individual can develop a good, long lasting, working relationship as well as providing the broadest access to the much-needed capital. Those who are experts in dealing with real estate investments are ideal capital providers. There are direct, indirect, and hybrid lenders that provide capital to real estate investors. Banks are direct lenders.

Real Estate Financing - What You Should Know About Home Mortgages
As the nation's real estate market continues to grow and new technology gains more ground, many widely accepted beliefs that were true just a few years ago may not be true today. Before you go after a home mortgage or home loan or any real estate financing, if you have a lot of bad credit because of consumer debt such as credit card or personal loans, try to eliminate or reduce this debt as soon as possible because it'll affect your ability to qualify for a home mortgage and the estimated monthly payment.

Finance North America Offers Canadian and US Citizens Construction Financing for Mexico Real Estate
Finance North America announced today its latest offering of construction financing for Canadians and US citizens who wish to purchase property in Mexico. Construction financing, also known as "Pre-Sale", from Finance North America will allow Canadian and American citizens to finance the construction of a house or condominium in select developments throughout Mexico.

Personal Loan For Consolidating Debt - Using An Unsecured Personal Loan To Improve Your Finances
With poor credit, you can reduce your loan costs and monthly payments by consolidating debt with an unsecured personal loan. Even without collateral in the form of property or assets, you can find lower rate loans. The key is to look online for special offers that fit with your financial plan.