Jason Bailey

Expertly compared by Jason Bailey

Products Updated May 10, 2018

Self Certification Mortgages

Self certification or none status mortgages as they were once known are no longer available. If you are self employed and required a mortgage you will now need to show proof of income and income of your income and expenses. Our experts can help find you a great deal from across the marketplace.

Free mortgage advice and brokerage service. Our experts can find you the perfect deal from thousands of products & exclusive deals:

Your home may be repossessed if you do not keep up repayments on your mortgage.

1 providers expertly compared:

Learn More
All credit types
Rated 4.9/ 5

Loans Warehouse Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

LTV
60% - 100%

Initial Rate
1.19% - 4.32%

Standard Rate (SVR)
3.94% - 4.79%

APRC
3.6%

Type
Variable & 3 ,5 & 10 Fixed Rate

The mortgage experts at Loans Warehouse can quickly assess your requirements and search the market place to find you the perfect mortgage deal. Click get a quote to make an enquiry today.

What You Need to Know About Self-Certification Mortgages

Self certifying your income is no longer an option

Self certifying your income is no longer an option

In April 2014 there was a swathe of changes made to all mortgages. For most, these changes had little impact, with only a few additional details being required in order to prove that the mortgage would be affordable, and thus lowering the risk to the mortgage provider. For self-certification mortgages the changes are a lot more significant as in the past little, or no, proof of income was required in order to secure this type of mortgage.

The Bottom Line

Basically the self-certification mortgage is a thing of the past and they are no longer available. The reason that they were removed as an option is because both borrowers and lenders were abusing the scheme because in order to secure a self-certification mortgage little, or no, evidence was required of proof of income because applicants would self-certify that their income was sufficient to cover the cost of mortgage repayments.

The Rumours

There are a lot of websites around offering advice to self-employed people, and also those who are contract workers or those who work on commission. The line that many take is that in order to get a mortgage with a non-standard income stream you will have to go through a specialist broker in order to have any chance of getting a mortgage.

In Reality

If you're self employed you have to show proof of income

If you're self employed you have to show proof of income

In the end, what it all comes down to is whether you are able to prove your income is what you say it is. Therefore if you have company accounts, or personal financial records, for at least the previous two years that can be used to demonstrate you income, you will be in a reasonably good position to use these to access most of the mortgage deals available to everyone. It is worth noting that some lenders will require three years’ worth of records and occasionally you will find mortgage lenders that will accept one year accounts. In addition to these you could also be asked about the work you have lined up for the future, which is in line with the questions that are asked to those on a standard income stream about any possible changes to income in the future.

There are a number of situations that could help you to get the mortgage you require as these will be seen favourably by a lender. If you have a good track record of maintaining contract work through regular contracts that provide you with a steady income you could use this to your advantage as evidence of a future stable income, particularly if you can show this to be the case for three years or more. If you already have a mortgage and are looking to remortgage, your existing lender could be more likely to provide you with the loan you are asking for as they will have existing evidence of your ability to make repayments. There are also other factors that can be taken into account that will be viewed as reducing the risk of lending to you, such as large amounts of savings.

Contractors and Agency Workers

For many types of contractors and agency workers it can be difficult to provide assurance of future employment. For self-employed people who don’t have at least a years’ worth of accounting history it can also be difficult to meet lender requirements to submit an application. In these cases it is likely that you will need to approach a specialist mortgage broker in order to find out what options are available to you. There are a number of specialist mortgages available for those who are self-employed and contract workers. The recent introduction of additional rights for agency workers means that getting a mortgage is now much easier than it used to be. However it should still be noted that evidence of income will be required for at least 6 months.

Loan Amounts

Lender calculations vary

Lender calculations vary

This is where you will find the main difference between having a standard income source and being self-employed or a contractor. It is not so much the specific amount you can borrow; rather it is the fact that this amount can vary greatly between lenders as each on uses a different method to calculate how much they will lend you. Some will take into account bonuses and overtime, while others will limit the loan amount to a calculation based on the basic annual income. A good mortgage broker will be able to provide information on the best lender for you to use who can provide the best balance of loan amount to interest rate.

We are independently reviewed by our verified customers and web users:
Rating: 4.6 / 5 with 27 votes

Lending Expert is a credit broker and comparison website, we're not a lender.

We bring together the very best financial providers and products from across the market place.

Warning: Late repayment can cause you serious money problems.
For help, go to moneyadviceservice.org.uk