Self certification mortgage

2007-03-08 10:33:40

( Financial )



If you want pmi certification training you will have to understand what a self certification mortgage is. You can get a valid mortgage certificate with self certification mortgage.

A self certification mortgage is the type of mortgage that permits you to declare what you earn from your employment. This type of mortgage started about a decade ago. It was intended for self-employed people and small businesses that did not have the evidence of three years’ income which the lenders needed.

Self certification mortgage isn’t useful just if you are self-employed. It is useful for anyone who earns irregular money. So if you:
• are involved in seasonal employment
• earn money through commission (sales people),
then self certification mortgage is the answer.

This type of mortgage differs from a normal mortgage in that you could have to put down a larger deposit. In the end your interest rates may also be far higher.

If you want a self certification mortgage you might need to have a deposit which is almost the value of the house. You also have to show the lender your bank transaction statements. The lender needs this to verify what your gross annual income is. In the case that you already have a home, they might ask for your mortgage statements.

They might not ask you to prove how much you earn – but don’t lie or exaggerate your earnings. There are very severe rules about this type of issue. You commit a crime if you lie about what you earn. If you do lie and are discovered you may even get a criminal record. At best, if you take out a larger loan than you can afford – what is the use if you can’t keep up with the repayments.

If you are looking for a self certification mortgage you can get a variety of interest rates. They are always higher than the normal mortgage rates. So ask your broker for advice before you make a decision. Your mortgage broker will be able to give you information that you won’t find anywhere else.


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