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UK Self Certification Mortgage
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Self Certification

Mortgages for Freelancers, Contractors & Self Employed.


The self-certification mortgage was introduced about 12 years ago for self-employed earners who could not produce pay slips from an employer. Anyone who has difficulty in proving that their earnings are enough to make repayments will need this type of mortgage.


There are 32 million self- employed people in the UK and many will not have evidence of income. If you have 2 years of audited accounts most mainstream lenders will accept this as proof of income and they will offer a standard mortgage. However anyone who has been trading for less than 2 years will have to apply to a Specialist Mortgage Lender for a self-certificate mortgage.


They will have to sign a legal document stating how much they earn. No documentary evidence will be required. If you are a first time buyer you may need a reference from a landlord or if you have had a previous mortgage you will need to prove that you have met mortgage payments for the last 12 months. Each case is judged on its own merits.


Self- certificate mortgages are more expensive and you will need a bigger deposit. Some specialist lenders will accept a 10% deposit but 25% is more usual. You will need to shop around. Any arrangement fee will tend to be bigger too. The good news is that after a few years you will probably be able to change to a standard mortgage and reduce your repayments.



Fraudulent Applications

The Financial Services Authority are very concerned about this type of mortgage because of the potential for fraudulent claims. Never be tempted to over estimate your income when applying for a mortgage, as it is a criminal offence.


There is a risk of losing your property and your credit history could also be damaged. There is also the risk that you will be unable to meet your mortgage commitments.



Specialist Lenders

There are about 15 specialist lenders in the market. Deals are improving as the market becomes more competitive. If you looking for a self- certificate mortgage it would be advisable to enlist the help of a broker as they can explain all the intricacies.


They have time to shop around on your behalf. Try to give as much information as possible about your recent income to be sure of getting the best deal. Other people who would benefit from this type of mortgage are those on short term or part-time contracts, contractors and people who rely on bonuses for a larger portion of their income.




Value of Property  
(eg 135000) 
Value of Mortgage
(eg 85000) 
Type of Mortgage