Self Certification Mortgage Applications Rise
Here’s An Opinion On: Montara Wealth By Michael Sterios The attractiveness of self-certification mortgage products is boosting the overall number of home loan applications in the UK. For true self-cert products, the applicant does not need to fully prove their income by way of documentary evidence such as pay slips and tax records. Rather, applicants will make a declaration of income to the lender based on their past earnings and expected future income. Self-certification mortgage products are growing in popularity as more people receive income in variable patterns and through non-standard forms such as bonuses and commissions. Originally self-cert home loans were designed for the self-employed. The changing composition of the workforces has, however, meant that many employees cannot fully prove their employment income as well. Not having to fully prove income is believed by some analysts to increase the risk of over borrowing and therefore repossession. However, provided the…