 Sam
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Joined: 21 May 2005
Posts: 298
Location: CALIFORNIA
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 Posted: Thu Jun 17, 2004 5:13 pm Post subject: Self Certification Mortgage |
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Self Certification Mortgage is a type of mortgage, which allows a borrower to state his income, without having to provide the usual documentary evidence. It is also known as non status mortgage. A borrower may be able to get maximum benefit from a self certification mortgage deal, if he fulfills the following conditions:
- Is self-employed.
- Works on a contractual basis.
- Rely on bonuses than just on normal salary.
- Gets a large proportion of his income from commission or overtime.
- Have numerous strands of income.
Main features of self certification mortgage are as following:
- It allows self employed business people and directors of small limited companies to ''self declare'' their income rather than proving it.
- It requires no physical proof of borrower's income.
- A borrower is not required to give the documentary evidence of his earned income.
- It usually offers 75% of loan-to-value.
- Here a mortgage lender normally requires at least three years of audited accounts and financial records from the borrower.
- Deposit required for self cert mortgages is a minimum of 10%. Here the rate of interest is directly proportional to the deposits provided by the borrower.
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