These are specially assessed mortgages where the applicant is not able to accurately prove their true level of earnings. This is not suitable for everybody and is not used by all Lenders. Examples could be business people who do not have two or three years accounts, contract workers, people with several sources of income. Lenders will have their own ways of assessing declared incomes are realistic and truthful.
An applicant declares their income to a lender and provides no proof to the lender. This is generally more suitable for the self-employed or commission based employees.
This is a special arrangement whereby the lender relies on the borrower to certify their own income, and does not seek to confirm this by reference to the employer, (or the accounts, in the case of a self-employed person). Lenders usually reserve the right to make checks if they want to.
This happens when the loans company allows you to state your income without needing to provide evidence.
Self Certification mortgages are for self-employed and employed applicants for whom proving their total income is not simple. Instead of proving your income, you are asked to calculate how much of your income you can put towards your mortgage after deducting tax, other regular commitments and the cost of living.
The borrower makes a statement of their own earnings instead of relying on confirmation from an employer or accountant. The lender will also make fewer checks on the borrower. Self certification mortgages usually carry higher interest rates than a ‘full statusâ€(tm) mortgage, and lenders will usually require a higher deposit as well
When it is difficult to provide substantiated confirmation of your income, you can choose to self certify your income by signing a declaration stating your income and that you can afford the loan repayments.
Is where a lender will allow you to put your income down on the application form, however, they will not verify it leaving the onus on the client to make sure they do not over commit themselves.
A mortgage loan where the borrower makes a statement of their income and the lender makes fewer checks than normal on the accuracy of this statement.
Where no proof of income is available, prospective borrowers are sometimes allowed to vouch for their own income. Self-employed applicants who lack the three years' accounts lenders would normally require most commonly use this process, known as self-certification. A small premium may be charged on self-certificated business, to reflect the extra risk involved.
A non-standard type of mortgage commonly used by the self-employed where the borrower states their own income because due to the nature of their employment they can't provide the usual forms of proof of income, such as pay slips.
The means by which a self employed person who does not have any accounts, can state his earnings. Some lenders will use this to support an income multiple.
