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Despite the bad publicity that self-certification mortgages have received in the press, these products are an invaluable source of funding for millions of people in the UK.
Their name has been tarnished by a few people lying on their application forms. But if used responsibly, they are a life-saver for many self-employed workers, businessmen and even some employed people.

Self-certification effectively means that you state what you earn – and that you can afford the mortgage repayments – and the lender basically takes your word for it, although it may make a few cursory checks, depending on the lender and product that you go for.

This is instead of the so called ‘status’ mortgage (the type that most people have). But if a self-employed person applied for a status mortgage they would probably be expected to produce three years worth of accounts.

This is not only hard work from an administrative point of view but, far more importantly, puts self-employed workers or businessmen at a disadvantage because accounts will only state past earnings and not what they might be earning today, thereby limiting the amount that they can borrow.

And businessmen who draw some of their salary in dividends or from other sources can face an equally problematic time, just to qualify for a loan that they would be granted immediately if they were an ordinary employee.

Self-certification is also useful for employed people who receive bonuses because lenders do not usually include all of an annual bonus in your income when deciding how much you can borrow. But if you know that you will be receiving bonuses each year and that you will be able to afford the higher repayments, self-certification will enable you to apply for the higher loan.

Of course, if you lie about your income you could be guilty of fraud so it is always important to be truthful. And, just as importantly, it is important not to stretch yourself too far. Be sure, if you are including your bonuses in your income, that they are reliable and will not disappear one year, leaving you struggling to meet your mortgage obligations.

At Chase De Vere Mortgage Management, the extraordinary is our speciality, so whatever your employment circumstances, as long as you fit certain broad criteria we are confident that we will be able to help.

Whatever your profession and your employment status, our expert advisers will know the best way to obtain the most suitable mortgage for your circumstances.

For advice on self-certification mortgages and the best deals, call 0800 358 5068.