Self Certification Remortgage

 

A self certification remortgage is also referred to as a ‘self cert’ or ‘non-status’ remortgage. It has been designed for the increasing number of self employed applicants who may find difficulty providing evidence of their income. For those self employed applicants who can prove their income by way of audited accounts amongst other things, they will usually require a status remortgage.

 

In general, a self certification remortgage will be subject to a lower maximum loan to value limit than that of a status remortgage. This reflects the lenders perception that self certification remortgage applications represent a higher lending risk than that of their status counterparts.

 

A self certification remortgage is also made available to employed individuals who may have different sources of income. In recent times, many more lenders have taken a more realistic view when assessing the affordability of an applicant. They have recognised that in today’s society many people receive income from a variety of sources which would not be taken into account by traditional assessment methods.

 

Maybe you receive maintenance payments from an ex spouse/partner that is not enforced via a court order? Maybe you receive performance related pay such as commission or bonuses that is separate to your basic salary? Maybe you work regular overtime? Maybe you receive various government benefits? Maybe you receive a rental income or an income from another business venture? The options could go on and on and as such, non status remortage applications have become much more widely accessible – not just simply for the self employed.

 

In general a self cert remortgage will usually be subject to a maximum loan limit of 90% of the property's market value - This will however largely depend on the applicant’s credit history. This also reflects the lenders perception of higher risk in comparison to an individual that can prove their income. The general rule however is that the more adverse an individual’s credit record is, the lower the permitted level of borrowing in respect to the property’s value.

A self certification is for the benefit of those applicants who genuinely receive a certain level of income but are unable to prove this. Self certification remortgages are not for falsely inflating income. Any-Loans will ensure that they act in your best interests in order to help find you the most suitable self certification remortgage. Not only must an applicant satisfy the lender’s affordability criteria, they must also be confident in themselves that the level of borrowing and the subsequent monthly repayments are going to be affordable.

 

Whatever your current circumstances, get in touch to Any-Loans today by completing their no nonsense enquiry form. All information that you provide is STRICTLY only used in conjunction to your mortgage enquiry. All illustrations provided are done so on a no obligation basis.