People with a poor credit rating, the self employed, contract workers and individuals with more than one income stream often encounter problems getting a conventional mortgage.

When you run your own business, providing proof of income is not always straightforward. It could be you have not been trading long enough to provide the three years of audited accounts, detailing net income, which is needed to satisfy most lenders. Even if you have three years worth of accounts available, it could be your accountant has entirely legitimately minimised your tax liability by offsetting a range of expenses. But as the self employed are subject to the same lending multiples as anyone else, this could have the knock-on effect of making your business look less profitable than it actually is, which could stack the odds against you securing the mortgage you need.

Until recently, self certification mortgages provided a solution for the self employed where you state your income level without having to provide any accounts. Self cert mortgages were suitable for people whose circumstances didn't match those required for a conventional mortgage. Unfortunately self certification mortgage products have now been withdrawn.  

If you are self employed or have a poor credit rating, it is more important than ever to seek expert advice as there are still some products suitable for people who don't fit the standard underwriting criteria.

An independent mortgage broker has access to the whole of the mortgage market in the UK and will find the best mortgage deal for you. 

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Whether you're a first time buyer, looking to move to your next property or remortgage to a better rate, an independent advisor will locate the best deals for you from the whole of the market. Simply complete our no obligation enquiry form and an expert mortgage advisor will get back to you with the best products currently available in the UK.	Company directors, business owners, sole traders, people with multiple income streams or additional income from overtime, bonuses and commission, seasonal workers, contractors, freelancers and people just stepping into self employment. Let an expert broker search from across lenders and products to find you the right deal.	An estimated one-in-four mortgage applicants are turned down by a traditional lender on account of their poor credit history. CCJs, defaults, bankruptcy or arrears listed on your credit file will mean you are likely to experience difficulty getting a mortgage. Get expert advice from a poor credit mortgage specialist.

Self Certification

Traditionally, a true state of 'self-cert' is where a borrower's income is derived from a range of sources and cannot be qualified. For example, your income may be a combination of cash, a Trust Fund, family money and revenue from an overseas property or investment. Because of the nature of self-cert lending, it was common for borrowers to be self-employed - although if you are in receipt of three years' certified accounts, you will qualify for a standard mortgage deal. 

Self cert attracted bad press in recent years triggered by a toxic combination of an 'easy borrowing' culture and a house price boom. The can of worms was first opened back in 2003 when an episode of BBC2's The Money Programme lifted the lid on estate agents and mortgage brokers encouraging borrowers to grossly exaggerate their income to take on a bigger mortgage. This led to a full-blown investigation by the Financial Services Authority (FSA) that issued a no-nonsense warning to both industry and consumer that knowingly falsifying income was a criminal offence. It also required brokers to prove that self cert was the most suitable course of action for each case.

As the credit crunch took hold, the inevitable effect was a stark reduction on the availability of self certified loans. Today they are pretty much non existent. Nevertheless if you have a reasonable deposit, there may still be lenders willing to help you. Lenders will individually access your application and take into consideration your personal circumstances including all forms of income such as second jobs,  bonuses, commission, investments, overtime and income from property rental.  

Get Expert Advice

Many people are daunted by the range of decisions they face when arranging a mortgage. A professional adviser will take the hassle away and guide you through your choices step by step, providing impartial advice on which option is the best for your own particular circumstances. Contact us today.