Many borrowers who obtained finance in the past through a “self certification” mortgage are now stuck paying high rates as they are unable to meet new affordability criteria with either their own lender or an alternative.
Is this your situation? If so, call to discuss your options.
Self certification – a popular option
Between 2007 and 2010 almost half of all mortgages taken out were on a “self certification” basis. When applying for a self-certifiaction loan income needed to be declared but there was no requirement to provide evidence, like with other loans.
It suited many people from the self-employed, contract workers and other professions with irregular income, including many doctors and dentists, particularly those new to the profession.
It is estimated that 5pc (%) of borrowers have a self-cert loan. This results in over 475,000 homeowners who are potentially trapped in their own homes unable to move and paying over the odds in interest.
New affordability criteria
The reality of the situation now is that self-cert mortgages are no longer available and those who are on a self-cert mortgage and want to move house or port their mortgage are unable to do so due to new, stricter affordability criteria. This even counts for those who have shown impeccable payment history with no defaults over lengthy numbers of years.