If you are self employed you may have less choice with your mortgage than those who are employed. If you have accounts to substantiate your income most lenders will be happy to consider your application.
However if your accounts do not show your total income, or real net income (for example your accounts may contain items such as depreciation that are not cash expenses) you may need a self certification mortgage, also know as a self cert mortgage.
If you are employed and have aspects of your income that you are unable to prove, for example, bonuses that are earnt but not yet to paid to you, self certification may be suitable for you.
A self cert mortgage is just like a conventional mortgage but the lender may allow you state you income and make no further checks.
With a self certification mortgage expect to pay a slightly higher interest rate.
Self certification mortgages are specialist products and need to approached with caution. They have pitfalls if you don’t know how to navigate your way through the different lenders. Even with the big high street names, one slip of the pen on an application can signal trouble even if you have an A1 credit profile. One lenders rules do not apply to others and you would be amazed at the minor details that make a big difference to the outcome of your application.
