Self-Certification Mortgages
For both types of mortgages (‘self - employed’ and ’self-cert’) a very much similar set of criteria will be used to assess the risk and credibility of a home mortgage loan applicant. The amount of borrowing power an applicant will have in regards to a home mortgage loan will largely be dependant on the type of property you are after and the ‘average’ annual salary as calculated from your last three years net income. There are variations of the income multiple formula but the ‘average’ is often multiplied by three. A mortgage advisor can extend there value examining if the applicant is better off applying through a joint application or remaining the on there own for the present. Exceptions have known to be made depending on the size of the applicants deposit. Another factor is the type of industry the applicant is operating in and how they compare to others operating in the same industry. For example a professional premier league footballer taking out a 30 year mortgage is an unlikely exception, as the majority retire in there early to late 30’s with a professional career spanning 20 years at most (including time spent in an under 18‘s division).As always a good credit history is important but not absolutely mandatory if you are willing to compensate a lender for the additional ‘risk’ with higher interest premiums.
