Are Self-Cert Mortgages Still Available?

Get in touch today to discuss the most suitable mortgage option for you.

A decade or two ago, Self-Employed people would often buy a home with a Self-Certification mortgage. These required no proof of income and were a fast and simple way to get a loan. But because they were a risky way to borrow they’re no longer an available option in the UK.

What are self-cert mortgages?

Self-certified mortgages let you buy a home without having to prove your income to a lender. With a traditional mortgage you need to evidence your annual earnings – but with self-cert, you simply signed to confirm your salary. 

Why aren’t they available?

Because there were no checks on whether the mortgage applicant could actually afford to repay their loan, self-cert mortgages were a risky proposition for both the lender and the customer. 

Self-cert mortgages developed a negative reputation, and in the USA became known as ‘liar loans’ because they were often used dishonestly.

Can I get a self-cert mortgage from overseas?

You might find overseas lenders offering self-cert deals, but the FCA advises strongly against these. UK mortgage lenders are a much safer option because they must follow strict guidelines. 

Overseas mortgages may have high interest rates and unexpected fees and charges. There is also less opportunity for reimbursement if you end up the victim of unfair treatment or fraud.

What are the alternatives to self-cert?

Self-Employment shouldn’t make it more difficult to get a mortgage and both high street and specialist lenders welcome customers who work for themselves. You can access the same products as an employed person, including interest-only mortgages. The only difference is that you need to provide tax records or company accounts to prove your income. 

What income will lenders accept?

Mortgage Lenders will accept a wide range of income sources for the Self-Employed.  These include:

  • Salary and dividends
  • Share of net profit
  • Investment income
  • Rental income
  • Pension income

How can Mortgage Market Place help?

We’re here to recommend the most appropriate financial products to meet your property goals. Our mortgage advisors will talk you through different types of mortgage from UK lenders and compare mortgage criteria, rates and fees to find a product to suit you. 

We’ll look at your income and deposit to set your property budget and then support you with the mortgage application. We are authorised and regulated by the Financial Conduct Authority (FCA). Get in touch for a free initial consultation.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Frequently Asked Questions

Call us today on 0800 170 7474 to discuss your borrowing potential and eligiability.

We believe in being competitive and transparent on fees.

Your initial mortgage consultation is free. You won’t be asked to pay a fee until we have submitted an application on your behalf.

Our fees depend on the product – see the list below or speak to an advisor.
Residential Mortgage & Remortgage
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee of £595.00 payable on receipt of mortgage offer. Total fees payable – £990.00.

Buy-to Let Mortgages & Remortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee from £595 up to 0.50% of the mortgage offer. For example, loan amount £200,000, broker fee payable could be £1,000.00. Total fees payable £1,395.00. A minimum broker fee of £595.00 will be applied on all buy-to-let applications.

Equity Release Mortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee of £995.00 payable on completion of your mortgage. Total fees payable – £1,390.00.

Credit Repair Mortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee equal to 0.5% of the mortgage offer. For example, loan amount £200,000, broker fee payable could be £1,000.00. Total fees payable – £1,395.00. A minimum broker fee of £595.00 will be applied on credit repair applications.

Life Insurance
No fee will be charged by us. You will receive a free quotation from the policy provider.

Typically, the mortgage process will take 2-6 weeks to reach approval.

A mortgage offer is usually valid for 6 months.

Please be aware, the process is currently taking longer due to Covid-19. Please see question ‘How has Covid-19 affected the mortgage market?’.

Whilst you are not required to take out a life cover, our job is to ensure your mortgage is affordable, no matter what. It may not be nice to talk about, but if something were to happen to you, you want to know your family and investment are safe.

We will advise on all the options available and provide a no obligation quote from our partner provider, Royal London.

You may need a solicitor, depending on the circumstance. Your adviser will discuss this with you, and should you need one we can put you in touch with our trusted partners, or you can use you own.