Self Certification Mortgages / Are self cert mortgages still available

Self cert mortgages used to be a common option for many of the UK`s self employed home buyers during the 90`s and early naughties, but since the credit crunch mortgage lending criteria has changed substantially and self cert mortgage`s are no longer available. This said there are still many options for the self employed, who may have irregular incomes or multiple sources of income.

Mortgages can often be a big problem for the self-employed or others whose income cannot be easily verified. A self cert mortgage allowed lenders who were willing to offer mortgages to individuals who are in this situation, on the basis that they effectively give their own guarantee that they earn this money monthly. Although the percentage of the property value was usually more limited to a maximum 85% of the current value.

So called "self-certification" or "self certified" mortgages were designed specifically for those whose income is not easily verifiable :

* For self-employed applicants, where historic income information is not always available (eg three years trading accounts), or if there is a disproportionately high cost of providing income information (eg fully audited accounts for sole traders).

Many lenders would accept income from employed applicants whose income is irregular (eg bonuses, commission), or those with multiple jobs (eg run their own part-time business), or contract workers. However should this not be possible a self certified mortgage may be the next best solution. As with any mortgage (whether self-certification or not) the lenders would ask you to make sure you can afford to meet the mortgage payments now and in the future - remember your home maybe repossessed if you do not keep up the repayments on your mortgage.

If you are in any of these categories and have found it difficult to obtain a mortgage through the normal channels, then you may need the help of a mortgage broker who knows the market and can source mortgages that may not be available on the high street.

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.