Are Self-Cert Mortgages Still Available?
It’s surprising how often we are asked about self-certification mortgages – despite the fact that these products haven’t been available for more than a decade.
People see them as a good way for self-employed people to get a mortgage, but there are much safer ways to buy a home now.
What are self-cert mortgages?
Self-cert mortgages don’t require you to prove your income. The idea is that you sign to confirm your annual earnings and that the monthly mortgage repayments are comfortably affordable.
Why aren’t they available?
Self-cert products disappeared from the market after the credit crunch. The financial crisis in 2007 resulted from ‘subprime’ lending, where some financial providers had offered credit, mortgages and loans to people who struggled to repay them.
With self-certified mortgages, there were no checks on the applicants’ income, so this contributed to sub-prime lending. New rules brought in after the credit crunch then required UK mortgage lenders to assess affordability for all potential clients – which is why income is now an important part of mortgage applications.
Can I get a self-cert mortgage from overseas?
Self-certification mortgages are still available overseas, but the FCA strongly advises UK borrowers against these.
With overseas lenders, there’s less protection from unfair practices, high interest rates, hidden fees or other unexpected costs.
Speak To An Expert
Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.
What are the alternatives to a self-cert mortgage?
Any mortgage is preferable to a self-cert mortgage! And now self-employment is no barrier to getting a mortgage and UK lenders accept all kinds of contract workers and people running their own businesses.
As long as you have a regular income, good credit and a deposit, you will be eligible for most traditional mortgages.
How do I prove my income for a mortgage?
Proof of income is an important step in a mortgage application. You will need documents that evidence your annual earnings – and your income can come from a range of sources.
Mortgage lenders will accept some or all of the following:
- Salary and dividends
- Share of net profit
- Investment income
- Rental income
- Pension income
Lenders will usually request payslips, P60 forms, tax records such as SA302s and tax year overviews or business accounts to prove your income.
How can Yellow Brick Mortgages help you?
Self-cert mortgages just aren’t necessary in today’s mortgage market, and our experienced mortgage advisors will help you find a mortgage that works for you.
We compare mortgage products from both high street and specialist lenders to recommend a suitable deal – whether you need a self-employed mortgage, an interest-only mortgage or Buy to Let.
Your property may be repossessed if you do not keep up with your mortgage repayments. The Financial Conduct Authority does not regulate some Buy to Let Mortgages.