Certain types of borrower, typically the self employed, contractors and freelancers may be unable to prove their income by way of certified accounts. Historically, this category of borrower were treated as second class citizens by the mortgage industry. Lenders regarded them as high risk because they deemed their income unreliable and couldn't take advantage of benefits such as sick pay or income protection if they were unable to work due to serious illness.

Selfcert mortgages were introduced around 15 years ago and eased the burden of proof. To qualify for a non status or self certification mortgage, borrowers just need to sign a statement of earnings, not provide actual proof. Credit checks will be conducted and previous lenders' references may be sought.

The difference between traditional mortgages and self certs has narrowed considerably in recent years as the numbers self employed have swollen to around 2 million. Lenders have reassessed their creditworthiness and gradually started to seek their custom. As competition has increased, interest rates have fallen.

The self employed are no longer treated as financial outcasts, banks are now eager grab a share of this burgeoning market and are offering attractive deals on a standard, self certification or non status basis. 

To get the best deals, its worth seeking the advice of a mortgage broker who has access to the whole market. A specialist non status intermediary can offer advice on choosing the right mortgage and help you compare different deals from different lenders. Simply complete the no obligation enquiry form.

Self-certification mortgages are designed primarily for borrowers who would struggle to prove their income, but they can useful for people who receive large bonuses or commission. For instance if you earn a basic salary of £40,000 and receive a further £40,000 in bonuses, most lenders would take into consideration only half the bonus and would therefore base your mortgage on an income of £60,000. A selfcert mortgage would enable you to borrow on the basis of having an income of £80,000.

An alternative to a self-cert deal is something called a "fast track" mortgage. Under this scheme applicants do not have to provide proof of income, although the lender "reserves the right to ask for proof of income" to carry out spot checks to make sure people are not abusing the system.

Furthermore, a standard mortgage should not be discounted altogether particularly as number of lenders have relaxed their rules and many will accept just the last two years' accounts or, in some cases, just one year of accounts and a projection of future income. A growing number of mortgage providers now base their lending decisions on affordability rather than simply lending a set amount based on a individual's salary.

Despite lenders being more lenient towards the self employed, the process of securing a mortgage can be laborious. An specialist broker will discuss your situation and suggest the best course of action. Simply complete the no obligation enquiry form.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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