Most UK mortgage lenders base the amount they will lend borrowers for a mortgage on their income. In fact most mortgage loans, regardless of the type are based on a multiple of your income. So when proving your income is difficult to do you are likely to find it hard to get a mortgage in the traditional manner, which is where self-certified mortgages come in.

A self certified mortgage is offered on the basis of your credit rating rather than on proven income and over the years has helped many self-employed people get a mortgage. Probably in recognition of this fact a self certified mortgage is often called a self-employed mortgage. However, just because it is sometimes known as a self-employed mortgage doesn’t mean it is only used by the self-employed. A self certified mortgage is also useful for those with several sources if income, and those who work on a contract by contract basis.

Over the past few years self certified mortgages have become increasing popular for the UK’s self employed sole traders as well as several other members of the work force, and now because of this there are even some self certified mortgages available from high street lenders. However for the widest choice of self certified loans it may be best to go to a mortgage broker, who can assess your individual situation and find you the ideal mortgage. They also have exclusive access to self-certified mortgages that you would not be able to find if you looked for a mortgage on your own.

When you go a visit your mortgage broker or potential mortgage company it is unlikely that they will simply accept your word about your income, so although you will not have to produce pay slips, you may have to show your bank statements for a certain period of time, or even get an accountant’s certificate which states that your income will be able to cover the mortgage repayments. Ultimately the credit check will have a significant bearing on whether you can get a self certified mortgage, but in addition to this, the more solid evidence you are able to show to prove your income, the better your chances of getting a self certified mortgage.

Another thing to bear in mind is that for mortgage lenders mortgages for the self-employed, like a self-certified mortgage pose bigger risk and as a result the rate of interest you pay may not be as competitive as a traditional mortgage. In addition to this mortgage lenders may not offer you as big a share of the house value. Taking the traditional mortgage route where you can show your mortgage lender that you have a steady income, you can borrow 100% of the house price. However with self certified mortgages you are likely to have to find 10% of the purchase price as a deposit on your mortgage because the maximum loan offered by most self certified mortgage lenders is only 90% of the purchase price. In fact many mortgage lenders offering self certified mortgages will only offer you 75% of the house value.