Many people find self certification mortgages to be a bit of a minefield. Below we look at some of the basic information about self certification mortgages.

For first time buyers, the mortgage is a big part of the house buying process which can be most difficult to understand. However, with the number of different types of mortgages on the market increasing, studies suggest that it is not just the first time buyers who are struggling to get to grips with mortgages. In fact, many housebuyers find the different mortgage possibilities perplexing. Below we look at some of the basic information you need if you are interested in self certification mortgages.

Self Certification Mortgages - The Basics

First introduced over a decade ago, self certification mortgages are specifically designed for people who have difficulties proving their income. This may come about because they are self-employed or possibly because they are doing a commission-based job and therefore have a fluctuating income.

Self Certification Mortgages - The Advantages

A large section of the mortgage market, who were not previously catered for, can now secure a specialist self certification mortgage which is dedicated to addressing their needs. One of the main advantages of this type of mortgage is that the borrower is not required to provide payslips, three years of accounts or other standard mortgage-lender required documentation proving income. This self certification mortgage has significant benefits for those who are self employed or who have difficulty proving their income.

Self Certification Mortgages - Some Drawbacks

There are, however, also some drawbacks associated with self certification mortgages. Many borrowers find that although they have quite a substantial deposit, they are still required to provide some proof of income. This may be in the form of a credit check, undertaken by the lender, or business bank statements or references. If you are a home owner, you may be asked to supply your existing mortgage statements, and if you are renting the lender will ask for a reference from your landlord. Although this may be frustrating for the borrowers of self certification mortgages, it is to be expected to a certain degree, when such a large amount of money is being lent.

If you think that you may be in the ideal position to take advantage of some of the advantages that self certification mortgages afford, then you would be well-advised to speak to a professional financial adviser who should be able to help you examine the different mortgage options you have available to you and advise you whether or not self certification mortgages are suitable for your individual circumstances.