Fast track mortgage.
If you are a borrower who maybe self employed and cannot prove your income things can get hard when trying to get a mortgage so fast track mortgages were introduced.
The fast track system was developed by mortgage lenders to allow them to accept a mortgage offer without proof of income like regular statements or PAYEs. You may have enough free cash to invest in a new home, but are you able to show concrete proof of your income to lenders for the purpose of getting a mortgage. You maybe self-employed or in work such as salesmen whose earnings are mainly commissioned based and erratic.
Working for yourself may mean that the major lenders see you as a risk and are worried you will not be able to keep up your repayments if your business slows or collapses. This is were a self certified mortgage is meant for such circumstances, as you are not required as borrowers to submit any salary slips or any other papers as income proof to get the mortgage. The mortgage is tailored for the self employed or people whose income cannot be assessed quite so easily.
You inform the lender of your income and based on this information, the lender works out the amount you can borrow. The lender however will require you to get an accountant who can back up your statement. The lender may ask their accountant to state that in their option the borrower can service the loan and has been trading an amount of time as stated on the application form and they are in the type of industry or service as stated.
As the loan represents greater risks to the lender, you will have to
pay higher interest rates than more conventional loans as a form of compensation.
Thus a person who can prove their income would be much easier and less
expensive to assess but self certified mortgages were designed because
in these circumstances that is just not possible.
Use of this article or exerts thereof without the prior permission of the author is unlawful and will result in prosecution, if you wish to use the article please contact info@selfcertmortgageuk.co.uk.
