Self Certification Remortgage

It is not only borrowers who suffer from adverse credit who wouldn’t be able to get a remortgage from a high-street mortgage lender. The self employed, directors of small companies and workers on short-term contracts may also find their applications being declined.

Without adequate proof of an applicant’s income, most lenders would be unable to lend to them as they haven’t been shown that the borrower is financial able to meet the monthly repayments.

To cater for this market many lenders now offer self certification remortgages. Self certification offers an opportunity for borrowers to self declare their income, without having to provide P45’s or wage slips. Some lenders do require that self certification remortgage applicants provide references from a bank or landlord.

Although self certification allows borrowers to remortgage who wouldn’t be able with a mainstream lender, there are a couple of drawbacks. Self certification remortgages do have slightly higher interest rates, and if you are purchasing a home you will need a sizeable deposit.