Self Certified Loans

 

In recent times the UK workplace has seen more and more people become self employed. Because it is so common place, the majority of lenders now offer self certified secured loans with many of the mainstream banks and finance providers moving into this field.

 

Over the years, self employed borrowers have felt the pinch when it comes to borrowing money - even today many secured loan providers will apply a higher rate of interest if you are looking to self certify your income - this higher rate of interest is also known as a 'loading' and can usually equate to around 0.25% above that of a conventional 'status' application.

 

If you were self employed 10 years ago for example, there would only have been very few lenders who would have offered this type of secured loan. More recently, many specialist lenders and even mainstream banks (Often trading in different names) have moved into this field, recognising the large number of self employed applicants with limited or no proof of income.

 

Self certified secured loans are generally available for those individuals whose income is difficult to assess using the traditional methods. These types of secured loan products can allow you to declare your income without necessarily having to provide audited accounts to back it up.

 

Individuals that are self employed in society, today have just as many choices and opportunities as those people who are on the payroll - with regards to personal finance. The actual rate that you pay on self certified secured loans might be a little higher than someone that does not need to self certify their income. But generally speaking the rates that are available to you are still highly competitive.

 

Self certified loans represent a higher risk for lenders so interest rates will tend to be higher than conventional loans.

 

Whether you are a builder, shop owner, director, entrepreneur or have multiple streams and various sources of income, you may be able to declare your income by way of signing a declaration to that effect. Different lenders will have different criteria when it comes to affordability assessment - subsequently this will mean that for self employed status applications, they may require different items for providing evidence of income.

 

For example 2 years of accounts, a letter from your accountant, tax returns and bank statements. If you are looking for a non status application or 'self cert', usually no backup proof of income is required and you may be allowed to simply declare your earnings. This facility is not for exaggerating your income in order to gain loan qualification.

 

The majority of lenders will simply be happy with a self assessment of income so you will not have to provide evidence in any other way. This offers a very simple and hassle free process.

To find out more and to see what rates are available for you on self certified loans please click on the relevant link above.