A self-certification mortgage is a home loan product designed for borrowers who may not be able to prove their income through traditional means such as tax records and pay slips. They were first made available to self employed individuals who could not produce the documentation required for a standard mortgage product from a high street lender.
If you are self employed then a self-certification mortgage may be the most appropriate home loan product for you to apply for if you are buying a property. Lenders rarely need the applicant to produce evidence of a forensic nature in order to verify their income. Instead, lenders will normally require the applicant to complete a statutory declaration regarding the sources and levels of their various income streams.
Such income need not be from self employment activity in the traditional sense. The income could be derived from businesses or investments rather than physical labour or traditional work activities performed under a self employment structure. A self-certification mortgage may therefore also be an appropriate product for a business owner or an individual who is not employed but earns a healthy income from their investments.
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