The self employed or those on short-term contracts aren’t always top priority for traditional lenders. When you are self employed it’s not always straightforward to prove how much you earn. Often people who are self employed don’t receive a regular payslip and their income can fluctuate drastically from month to month. 

The better your accountant is, the less attractive you may look as a prospective mortgage borrower. This is because most of the traditional mortgage lenders will insist on seeing three years’ worth of audited accounts before lending to the self-employed.

More and more people are being employed on short term contracts, which could be anything from three months to three years, and may be renewable or not. But many high street lenders treat contract workers as being self-employed regardless of the terms of their contract.

Changing working patterns, coupled with a self-employed sector that now accounts for 3.2 million people, means increasing numbers of people in the UK are using the services of specialist mortgage lenders who offer more options than for the self employed including what are known as self certification mortgages.

With self certification (or self cert) you simply state what your income is and the lender gives you a mortgage based on that basis, once they have run a credit check on you. You don't need to provide proof of income such as payslips, a P60 or audited accounts to prove your income. 

This can be ideal for those who are newly set up in business and so do not have a full set of accounts to show (although you do need to have been self-employed for 12 months).

This is how a true self cert mortgage works, however other schemes are available and some lenders may ask you to prove your income in other ways, such as an accountant’s certificate, which is a document signed by your accountant to say that your income is sufficient to afford your repayments. You may also be asked to produce your business bank statements for a set period, so the lender can assess your gross income. 

Most lenders will supplement this information with their own credit searches. If you are a homeowner you will be asked to supply your existing mortgage statements and, if you are renting, the lender may ask for a reference from your landlord. 

As a self-cert borrower, the range of mortgages available to you has improved in recent years. There is a range of fixed rates, discounts, tracker mortgages and even flexible deals available on a self-cert basis. 

We have a great deal of experience arranging self certification mortgages and have access to the full range of products available in the UK. We can advise on what's available and what your best options are.

Whatever your circumstances, simply complete our quick no obligation enquiry form and let us locate the best deals for you.