The Self Cert Mortgage

Published Date Author: admin, May 29th, 2011

The purpose of the self cert mortgage is to provide a mortgage for a borrower when their income does not fit the general qualifying guidelines. The self cert mortgages are the result of the financial boom of the 1980′s. At that time many were self employed, they needed mortgages but were not able to prove their income. Self cert mortgages are a high risk mortgage so be prepared to put at least 25% down on the property you purchase. It is best to use a mortgage broker to help you locate a lender that can provide self cert mortgages. The larger the down payment the greater the selection of lenders the broker will be able to offer for your self cert mortgage. The interest rate on the self cert mortgages is higher than a typical mortgage. The rates are higher on the self cert mortgage as the risk for the lender is much higher on the self cert mortgage.

To apply for the self cert mortgage a borrower simply declares their income. This type of mortgage is very beneficial to someone that is self employed. An individual that has seasonal employment, or the owner or a small business may benefit from the self cert mortgages. Sales people that commonly work on commission my also benefit by using the self cert mortgage. Anyone who has difficulty documenting their income can benefit from the self cert mortgage.

The borrower for a self cert mortgage must prove their credit history is a great credit history. Although proof of income is not required they must show that they have in the past had income and can handle their obligations. The self cert mortgage is not always the best option for a mortgage, however for the self employed that cannot prove their income this may be the only mortgage option. Currently the FSA, (Financial Services Administration) regulates the self cert mortgages.

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