Self certification mortgages

There are many different types of mortgage available these days, with mortgage loans on offer to suit a wide range of needs, circumstances, and budgets. Whether you have good credit or bad credit, are employed or self employed, you should find that there are mortgage products on the market to suit both your needs and your pocket, although rising interest rates have obviously had an impact on the affordability of mortgages, especially in the case of sub-prime mortgages, where lenders have pushed interest rates up higher than the base rate in many cases.

A self certification mortgage is a type of mortgage that comes under the umbrella of sub-prime mortgages, and this is because the lender is classed as an increase risk because of their self employed status. Being self employed can be very rewarding for many people, and means that you can enjoy unlimited earnings potential and the freedom of working for yourself. On the downside the potential instability of this type of employment status means that you are classed as an increased risk by lenders, and therefore the cost of taking on a loan such as a mortgage may be far higher than for those with an employed status and good credit.

Finding a suitable self certification mortgage

As with any type of sub-prime mortgage you may find that your choice of lenders is limited when you are looking for a self certification mortgage. This is because many mainstream lenders will be reluctant to take the financial risk of lending to someone that may soon find themselves in a position where they are unable to keep up with repayments – this is particularly true in the current economic climate, where the global credit crunch has had a profound effect on the number of lenders that are able to consider lending to those that come under the higher risk category.

For many lenders self employed customers – or those that cannot prove their income – are as high a risk as those that have poor credit in terms of the likelihood of defaulting on repayments. This is why so many people that are self employed end up struggling when it comes to finding a suitable mortgage for their needs. As a self employed, self certified applicant you will generally find that the choice of lenders available to you is limited and the interest rates charged on a mortgage loan are significantly higher than the rates charged on a standard mortgage loan.

There is one thing to bear in mind with mortgage loans for self employed applicants, and that is the risk of over-committing yourself. Over recent months it has become known that a number of lenders and mortgage brokers have been advising applicant that are self employed to exaggerate their income in order to try and get a higher loan. Of course, with today’s high property prices being able to get a larger loan through lying about your income can prove invaluable. However, at the same time it can result in you getting lumbered with a mortgage loan that is way over the odds in terms of your actual income multiples, and therefore you should avoid exaggerating your income as you could end up over-committed with a mortgage loan that you cannot possible afford.

As a self employed self certifying customer you will find that there are a number of lenders that are able to offer finance, even though this may be at a higher than normal interest rate. In order to get the best deal it is vital that you compare a number of lenders and a range of self certification mortgages in order to find one that offers competitive rates and value for money on borrowing.

In order to find the best suited self certification mortgage for your needs it is important to compare the different packages on offer, as to see which will offer the best deal at the most competitive rates. With such a wide range of lenders offering this type of mortgage it is important to take the time to compare and see which deal will best suit your needs and pockets. The easiest way to do this is through the convenience and ease of the Internet, as you can then enjoy the ease and convenience of comparing and even applying for your self certification mortgage from the comfort and privacy of your own home.

Once you have found a suitable self certification mortgage you will be able to make your application online, and you will not have to prove your income in most cases, hence the nature of the mortgage. However, you will have to meet other eligibility criteria in line with the lenders’ requirements, so you should make sure that you familiarize yourself with the needs of the lender.