Self-certification mortgages are gaining increasing popularity because of the rising number of people who are self-employed, struggling in meeting the traditional lending requirements. Self-certification mortgages allow borrowers to indicate how much they are earning, and how much they can afford in paying the loan back. Self-certification borrowers need to sign a legally binding contract that declares their earnings without having to prove their earning levels on the document. It has been designed for borrowers who are struggling in proving their income, such as self-employed and short-term contracts with accounts g only a couple of years. It allows people to file larger loan applications if they can provide a proof of income, and have received standard multiples of income offered by mainstream lenders.
A significant percentage of self cert mortgages europe lenders offer at least one approved self-certification product. The interest rates of self-certification loans are between one and a half percent higher than standard loans. Financial experts recommend opting for self-certification mortgages for one to three years, considered as short-term self-cert loans, and then shift to standard loans once you meet the criteria in order to be able to shift paying a lower interest rate. Most self-cert lenders need a bigger deposit of about eighty-five percent of the value of the property. Self-cert deals meet the real needs of people today because there is an increase in the number of self-employed people every year, making it practical to offer this kind of mortgage option. There are other alternatives to self-cert deals such as fast-track standard loans offer to an applicant who is not a first-time buyer, with a sizeable deposit. With fast-tracking, applicants are not obliged to provide a proof of income, same with self-certification.
Whatever option you choose, self-certification and fast tracking are two great adverse remortgaging options offered by lenders to address the needs of self-employed individuals, giving them an opportunity to align themselves with formal workers and benefit from lending without carrying too much burden proving their income. It is totally a breath of fresh air for those who are truly in need.
But if course, on the borrower’s side, you have to be dedicated paying your loan on time, and not to abuse the opportunity you are given. For more information about self-cert mortgage loans, feel free to view our website or contact us directly. Allow us to help you find options to your financial needs. Good luck with your home buying endeavor! If you want to learn more about self-certification mortgages, you can visit http://en.wikipedia.org/wiki/Mortgage_broker.