SELF CERTIFIED MORTGAGE
A Self Cert Mortgage requires a declaration from the borrower that the repayments of the loan are affordable. It is possible that quite large loans are negotiable in this form.
No proof of income is required, although it is possible that the lender may wish to contact your accountant to get confirmation that you are trading. If you are not engaged in a business in this country you may be earning abroad, you may be banking abroad or there may be many reasons why you are unable to show details of your income. You may not even wish to show such details.
There are many lenders in this most sophisticated of markets, and plenty of competition to ensure that the interest rates involved are rather lower than they were in an earlier period. There is obviously a greater risk for the lender in these self certified loans and so the tendency is for the interest rates to be higher, but Charleswold have contact with lenders with whom they have negotiated similar mortgages to borrowers with an uncomplicated credit record.
It is possible for some ordinary mortgages to be arranged without deposits, but self certified mortgages, because of the higher risk involved and because of the possibility of greater sums to be lent, require a deposit of some 10 to 15%. This sort of deposit would, however, still mean a higher interest rate than normal. If you wish to qualify for the same sort of interest rate as a full status borrower you would have to provide a 20 to 25% deposit.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All loans and mortgages are secured on property. Think carefully before securing other debts against your home.
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