Self-cert Mortgage
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Getting a mortgage can be difficult, especially if you are self-employed or unable to show regular monthly payments. For people in this type of scenario, a self-cert mortgage offers the best financial solution for your predicament.
Lenders assess the risk factor of each mortgage applicant and the self-employed or those with inconsistent incomes raise red flags as far as the bank is concerned. In all likelihood, a regular mortgage will be out of reach, however most lenders do provide self-cert financing for your property.
For best mortgage deals, visit our best buy tables to compare self-cert mortgages. More...
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| Fixed (no tie-in beyond benefit period) | ||||||
| First Direct Offset | 5.49% | 2 years | 6% | 80% | No Overhang |  |
| Alliance & Leicester Prime | 6.14% | To Aug 2010 | 7.19% | 75% | No Overhang | |
| Derbyshire BS (Direct) | 6.79% | To Sep 2018 | 7.09% | 90% | No Overhang | |
| Fixed (with tie-in beyond the benefit period) | ||||||
| Market Harborough BS (Direct) | 3.99% | 2 years | 7.15% | 75% | Overhang | |
| Capped | ||||||
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| Light Adverse Payment History | ||||||
| Skipton BS | 6.19% | To Aug 2018 | 6.45% | 75% | No Overhang | |
| Ipswich BS | 6.49% | To Aug 2011 | 7.24% | 80% | No Overhang | |
| Medium Adverse Payment History | ||||||
| Heavy Adverse Payment History | ||||||
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| Discount (with tie-in beyond the benefit period) | ||||||
| Discount (no tie-in beyond benefit period) | ||||||
| HSBC Bank plc (Direct) Purchase | 5.43% | 2 years | 6.25% | 90% | No Overhang | |
| Mansfield BS (Direct) | 5.65% | 3 years | 7.19% | 75% | No Overhang | |
| Barnsley BS (Direct) Branch only | 5.69% | 2 years | 7.19% | 85% | No Overhang | |
| Market Harborough BS (Direct) | 5.95% | Term | 7.15% | 75% | No Redemption | |
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| HSBC Bank plc (Direct) Purchase | 5.43% | 2 years | 6.25% | 90% | No Overhang | |
| First Direct Offset | 5.49% | 2 years | 6% | 80% | No Overhang | |
| Alliance & Leicester Prime | 5.89% | 2 years | 7.19% | 75% | No Redemption | |
| Market Harborough BS (Direct) | 5.95% | Term | 7.15% | 75% | No Redemption | |
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| Direct Line | 6.39% | To Jun 2010 | 6.5% | 95% | No Overhang | |
| Bank of Ireland 1st Start | 6.99% | To Jul 2013 | 7.09% | 95% | No Overhang | |
| Bristol & West Mortgages First Start | 7.19% | To Jul 2013 | 7.09% | 95% | No Overhang | |
| Coventry BS | 7.39% | To Sep 2013 | 7.09% | 95% | No Overhang | |
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| Barnsley BS (Direct) BTL | 6.19% | 3 years | 7.19% | 75% | No Overhang | |
| Principality BS Buy to Let | 6.39% | To Jun 2010 | 7.09% | 60% | No Redemption | |
| Lloyds TSB BTL (Direct) | 6.54% | To Aug 2011 | 7% | 80% | No Overhang | |
| National Counties BS Investment | 6.79% | To Aug 2013 | 7.35% | 75% | No Overhang | |
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| Market Harborough BS (Direct) | 6.1% | Term | 7.15% | 75% | No Redemption | |
| Scottish Widows Bank Offset | 6.29% | 2 years | 6.49% | 75% | No Overhang | |
| Yorkshire BS (Direct) | 6.54% | To Jun 2013 | 6.9% | 75% | No Overhang | |
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|---|---|---|---|---|---|
| Mansfield BS (Direct) | 5.9% | 2 years | 7.19% | 75% | No Overhang | |
| Principality BS Direct | 5.99% | To Jun 2010 | 7.09% | 75% | No Overhang | |
| HSBC Bank plc (Direct) Fee Free | 5.99% | Term | 6.25% | 90% | No Redemption | |
Lenders assess the risk factor of each mortgage applicant and the self-employed or those with inconsistent incomes raise red flags as far as the bank is concerned. In all likelihood, a regular mortgage will be out of reach, however most lenders do provide self-cert financing for your property.
For best mortgage deals, visit our best buy tables to compare self-cert mortgages. We also have a comprehensive list of mortgage providers in our A-Z page, many of which offer self-cert mortgages to self-employed clients. If you have experience of a mortgage lender we would like to get your opinion, so don’t forget leave your rating. Finally, our Forum page is available should you want to post a message or see what other people have to say about self-cert mortgages.
Applying for self-cert mortgage
In order to qualify for a self-cert mortgage, you must be able to prove to the lender that you have the income to cover the repayments. The lender will look for the all or some of the following:
- A signed declaration of your income.
- A certificate signed by an accountant stating that you have enough income to make repayments.
- Backdated bank statements for a specified period of time.
- A reference from your landlord to show that you have paid your rent reliably, plus any statements showing timely loan repayments. In other words something to prove you can be trusted to make repayments on time.
Psst...please let us know if this information is helpful by posting a message on our Forum
The lender will run a credit check, so therefore it is advisable to get your finances in order ahead of making a mortgage application. This means paying off loans, or credit cards in full and on time. Also, ensure you are not the victim of identity fraud. Contact credit agencies for a copy of your report and make changes as necessary.
Self-cert mortgage interest rates
Self-certification mortgages are considered a “higher risk” product by many banks and lenders. High risk usually means high interest rates; a harsh reality that puts the more competitive mortgage plans out of reach.
In addition, the other downside to a self-cert mortgage is the need for a substantial down payment. To qualify for a self-certification mortgage, the majority of lenders will look for around 25% of the property’s value
Overall, self-cert mortgages provide the self-employed property hunter with a feasible way to finance a new home.
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