Self Certification
November 21st, 2008In the current climate, Self Certifying your income has become more difficult, with many lenders tightening their criteria and restricting loan to values and loan amounts, this all being due to the credit crunch and American sub prime market problems. In fact, some lenders, consider No proof of income secured loans as sub prime. This means that with all the current turmoil, that self cert cases have been included within the criteria changes.
When you Self Certify your income, you may pay a higher rate of interest than a case which is considered a status case ie,employed with Payslips. This is usually due to the fact that you are a higher risk than someone with provable income. Even if your credit history is good and you have made all your contractual payments, you are generally considered a higher risk. Self Certifying you income can be done in several ways,you may simply fill out a self declaration form, or you may be asked to provide proof of self employment, eg, letter from the Inland Revenue,or you may be asked to provide accounts or an accountants reference. The amount of information you can provide can have an effect on the available lenders and the rates. Generally the more information you can provide,the better.
However, as with any market, the self employed/no proof of income market will recover since there is a demand, and whenever there is demand their will be supply, it is only a matter of time before additional lenders enter the market and current lenders relax their criteria.
Your cause can be greatly helped by choosing a good packaging company, who will have the criteria for all their relevant lenders, and will save you alot of time and credit searches, to help you through this and get you the Self Cert secured loan your looking for.