Self Certification Explained

It is estimated that 14% of the population in the UK are self-employed, and as a result are unable to adequately prove their ability to repay a mortgage to a lender.

Self certification allows borrowers to declare to a lender how much they earn, without the need to provide payslips or P45's. Instead self-employed borrowers can use figures from accountants, company records or tax bills to prove their eligibilty when applying for a mortgage or remortgage.

However, it is not just the self-employed who may require a self-certification mortgage. Employees on short term contracts, or those who work on a freelance basis, may have difficulty proving their income - as well employees whose income primarily consists of bonuses and commission.

Self-certication may not be the best route for all borrowers with irregular income - by speaking to a remortgage broker you'll be able to find out whether you need to self certify your income. To discuss your options with one of The More Group's mortgage experts complete our online enquiry form - any advice we provide is completely free and carries no obligation whatsoever.

Self-Certification - Beware!

In order to ensure their lender approves the maximum mortgage amount, there have been cases in the past of borrowers overstating their income via self-certification.

Aside from being illegal - lying on a mortgage application is a criminal offence - overstretching your income could mean you are unable to meet your mortgage repayments, and risk losing your home. Even if your able to meet your payments today, a small increase in interest rates in the future can have a dramatic effect on your monthly repayments.