Are Self-Cert Mortgages Still Available?

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 Marketplace 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.