Self Cert Mortgage

What is a Self Cert Mortgage?

A Self Cert Mortgage is a type of mortgage product that does not require the applicant to prove their earnings in order for the mortgage to be offered. The applicant still declares their earnings - and to lie on a mortgage application is illegal - but the lender will not seek to verify this claim.

Self Cert stands for Self Certified. These type of mortgage have come in for some criticism by those who believe that mortgage lenders are inviting fraud by making it easy for borrowers take out loans they cannot afford to repay. But for many others, a self cert mortgage is an invaluable life line that lets them get the house they want, especially if they are self employed and would otherwise find it difficult to prove their actual income.

Are Self Cert Mortgages a good thing?

By enabling buyers to purchase more expensive properties they may not normally have been able to afford, some have claimed that it has added to a house price bubble. In 2004, the BBC's Money Programme investigated the claim that self certs were skewing the market.

Disclaimer: Self-Cert-Mortgages.Info is an independent website, proving information about self cert mortgage products. If you fail to keep up with your mortgage repayments, you may lose your home.