The Expanding Market for Self-Certification Mortgages
Michael Sterios The market for self-certification mortgages is expanding rapidly along with the rest of the non-conforming lending market. This is mainly due to a rise in the number of self-employed people in the workforce. Such individuals usually earn enough money to apply for a mortgage, however many do not possess the strict accounting records required to apply through a mainstream lender who will require full proof of income. Self-certification mortgages ensure that the growing number of self-employed individuals do not miss out on home ownership because of their lack of records. More and more people are being offered short-term contracts as they provide a safer structure for employers to hire and fire people based on their performance. There is also an increasing number of individuals who earn at least part of their income on a performance basis such as through commissions and bonuses. These workers may receive an inconsistent amount of money each month which can make their income seem volatile and risky to high-street lenders. However, people who make a living through such means may actually earn a substantial amount of money and should not be discriminated against when applying for a mortgage. As a result, self-certification mortgages are also suitable for this type of worker as well as for the self-employed. Because of this shift in workforce dynamics, lenders have reassessed their lending criteria. Products that offer self-certification of income and flexibility in terms of overpayments are becoming more common. While self-certification mortgages have been subject to some bad press in the past, they are now heavily policed by the Financial Services Authority. Mortgage intermediaries can now be called upon to justify recommending self-certification of income if the borrower also qualifies for a mainstream loan. This increased regulation has lead to self-certification mortgages building a solid reputation within the mortgage industry. About the Author
UKMortgageSource provides up-to-date information on Self-Certification Mortgages Michael Sterios may be contacted at http://www.ukmortgagesource.co.uk/self-certification-mortgages.html. Click here to view more articles by Michael Sterios. Reprinted with Permission from IdeaMarketers.com
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