Although self cert mortgages in the residential mortgage market are no longer available we still get daily enquiries for them. Usually the enquiry comes in a familiar format and depending on the type of enquiry depends on whether a new mortgage deal would be available.

1. Self employed, used to have a self cert mortgage?

We have numerous enquiries where people who are self employed and used to have a self cert mortgage feel that this is the only way for them to obtain a mortgage. This is untrue. If you are self employed and have a provable income from any of the following sources then a residential mortgage, subject to a clean credit file and passing the lender’s credit score, should be available to you:

  • PAYE
  • Dividends
  • Your share of net profit
  • Your income as declared on your self assessment form, also known as an SA302
  • Government benefits and allowances
  • Pension income

2. Buy to Let, Self Cert mortgage?

Buy to let mortgages are still available to clients that have no provable income due to reasons such as less than 12 months trading, house person or if you are self employed and have not made a profit in the last 12 months. The number of lenders in this market place is limited although mortgages are available.

As a point of interest, a buy to let mortgage loan is usually granted based on the size of the deposit and the achievable rental income the property would receive – it is NOT based on personal income although some lenders may want to see a provable minimum income.

Therefore if you are after a self cert buy to let mortgage you have options. If your self employed provable income is £25,000 you could still obtain, for example, a £250,000 buy to let mortgage subject to fitting the lenders other mortgage criteria.

3. Self employed – cash income?

This type of mortgage where your income is not declared to the tax man is not available.

The future of the self sert market We don’t envisage self cert mortgages in the residential market place returning. Even lenders and brokers that offer ‘fast track’ mortgages are slowly disappearing from the market. For those of you that are self employed the days of declaring a minimal income to the tax man whilst trying to obtain a maximum mortgage amount based on achievable income are long gone.