Self Certification Mortgages, what are they ?

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self employed.

But are you alone in the pursuit? No. The statistics put the figure of self employed people at around three million. Add to this the people who are working freelance and those working as temporary hires. They too are denied mortgages on the same grounds as a self employed.

If the mortgage companies continue with this step motherly attitude towards such a vast group of population, it is not late when they lose plenty of their business.

And what are the grounds for such denial. The most basic reason is that these persons do not have a stable income. The self employed persons, for instance, earn a lot one month, and nothing in another. This increases the chances of a default or arrears.

Second reason for not allowing them an access to mortgages is that they get their income from varied sources, thus making the computation of income difficult. A freelancer may work for a number of people, each paying him/ her different remuneration for his services.

Finally these people do not have any means to prove their income like those who are in employment with others. The salary slip or P60 forms can ( life insurance quotes ) prove income of the latter. But there is no such document with the self employed persons. Audit results of three previous years would have served the purpose, had accounts not been fudged to evade tax.

This is where self certified mortgages step up to provide relief. A self certified mortgage can help self employed and freelancers to draw as ( life assurance ) much fund as they like, without having to prove their income. This includes no dishonest ways and means to prove a larger income. In this kind of mortgage a customer has to declare income and no further checks are made. The customer is required to put forth no documents to prove his contention. It is his words that value more.

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