This means the applicant declares his or her salary on the application, but does not provide other documentation as proof. Suitable for people who are self-employed, but who can not produce audited reports for the last two years, or for employees where a large part of their income is not guaranteed (bonuses, commissions, etc.) or they do contract work. Self-certification mortgages are only available from some lenders and they carry an interest rate premium.
Several lenders will allow borrowers to self certify their income and no further checks on income are made. This type of scheme is useful to the self employed who may not have accounts available or any other person who has difficulty in proving their earned income. The lender will normally make checks on previous credit history and will require a clear credit search in addition to a good previous lenders reference.
where you state your level of income to the lender which it will generally accept with the minimum of checks.
You confirm how much you earn, and the lender does not need any references. He makes fewer checks than normal on the accuracy of the statement.
A mortgage loan where the borrower makes a statement of his or her income and does not need to provide proof of earnings. The lender makes fewer checks than normal on the accuracy of this statement.
Self-certification means that the SLD will hold the applicants and the Service Providers to the statements made in applications, registration, certification and invoice forms.
Should your income be difficult for a lender to assess through normal methods, you may need a self-certification mortgage. If you receive high bonuses, or work seasonally or on commission, or are self-employed this may be your only option. You will declare your income, usually backed up by a certificate from your accountant if you have one. Lenders want to see as much guaranteed income as possible. To compensate the lender for the increased risk on this mortgage, you are likely to be charged a higher interest rate for it.
Commonly for self-employed people with a large deposit but limited earnings track record. (Inaccurately) known as a "non-status" mortgage. Some lenders will accept the applicant's assessment of their net profits.
Where no proof is available, prospective borrowers are sometimes allowed to vouch for their own future income. This process, known as self-certification, is most commonly used by self-employed applicants who lack the two years of accounts that lenders would normally require. Many lenders charge a small premium on self-certified business to reflect the extra risk involved.
Should you have difficulty in providing documentation that "proves" your income to a prospective mortgage lender, you may need a self-certification mortgage. In essence you personally certify what your full income is. If you receive high bonuses, or work seasonally or on commission, or are self-employed this may be your best option. You declare your income plus some evidence that your declaration is reasonable. Ideally lenders want to see as much guaranteed income as possible. To compensate the lender for the increased risk they are taking on a self-certified mortgage, they will charge you a higher rate interest, typically 1% over their standard variable rate.
With this mortgage the borrower provides a statement of his or her income and the lender may or may not check the accuracy of the information provided.
Where no proof is available, prospective borrowers are sometimes allowed to vouch for their own income. Self-employed applicants who lack the two years' record of accounts that lenders would normally require most commonly use this process, known as self-certification. Many lenders charge a small premium on self-certificate business to reflect the extra risk involved.