A Self-Certification mortgage is a mortgage designed for people who are unable to provide proof of income. This type of mortgage was originally designed for
self employed who historically experienced difficulty obtaining a loan with 'high street' lenders due to not having audited accounts available. If you are unable to show your earnings due to being self-employed, a seasonal wage earner, or anyone with irregular earnings such as a contract worker or commission-based employee, or in salaried employment with a supplementary source of income, an unsalaried company director, or varying other reasons - a Self-Certification mortgage could be best option for you.
Self-certification mortgages allow borrowers to certify their own earnings without having to supply documentation, such as payslips. With a self-certification mortgage you declare what your income is but generally you do not need to provide any proof. You can apply if you are employed or self employed.
Self-Certification mortgages have also found favour with salespeople and other workers who receive a high proportion of their income as commission or bonus. Even though you may have achieved high earnings this way for years, commission or bonus may still not be considered in calculations by high street lenders.
Self-certification can also be suitable for professionals who often start on a low salary, but whose incomes can rise rapidly.
Self-certification mortgages are suitable for applicants whose income is not easily verifiable, like self-employed or those that receive commissions. If you're self-employed, a contractor, have irregular income or multiple jobs, you are probably one of many who know you can afford a mortgage but have difficulty proving your income.
Self-certification mortgages are also quite good for people just starting out in a new career with good steady income and a fair amount of deposit behind them.
Self-certification mortgages are ideal for self employed people who perhaps have not been in business for required three years or cannot produce accounts for a three year period but can demonstrate usually through an accountant's reference that they can meet mortgage payments.
