Self Cert Role in the UK Market

2007-03-08 10:33:40

( Financial )



When the British market experienced a growth in mortgage, self cert became popular as every mortgage lender were looking for an advantage as the number of competition increased. The uk self certification market continued to grow every year, outdoing conventional mortgages even when it also experienced growth.

Commonly known as self cert, self-certification mortgages made it applying for mortgage possible for self-employed who were being denied by lenders for lacking documents to prove their income. With self cert, you only need to certify to declare your annual expected earning without documentation.

The success of the uk self certification market is not without risk and its share of bad publicity. Some fear these lenders relaxed their rules on uk self certification to take advantage of the economic boom that the British market is experiencing. These fears to some may feel like over reaction as interest rate and unemployment is low but prone to trouble especially if an economic downturn or a slowdown occurs.

Some also point out that the success of the uk self certification market led to a house price inflation.

Still some experts think even with a slowdown the uk self certification market will still do better than its counterparts as they believe it has still room for growth.

At first, self cert was only open to self-employed and business that lack the necessary number of years to qualify. A shift in the work pattern made it accessible for any individual who earn in different ways and others that rely on bonus and commissions.

Since the uk self certification market is highly competitive and easily accessible, some are attributing the increase in self certification to people who indiscriminately exaggerate their income. Although it is a criminal offense to lie about your income, an immediate concern is that if you can cope up with the monthly payments you cannot afford.

Although some will still question its existence, self cert is a welcome financial option for people who were denied an opportunity for a mortgage. With its success, the uk self certification market seem to be in the forefront of the British mortgage market.


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