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| CURRENT SECTION :: Money | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
 
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Contractormoney have access to a wide range of Self-Certification mortgage options for those contractors who may prefer not to follow the standard ‘contract rate’ based lending criteria that we have negotiated. We fully understand that there will be a variety of reasons why you may be unwilling/unable to prove your income. Maybe - 1. You work through an EBT or similar scheme and possibly have a contract that states the scheme but does not feature your name 2. You work currently overseas, perhaps are not paid in pounds or do not repatriate funds to a UK bank account 3. You are currently on a lower rate than normal and wish to use more realistic previous/anticipated contract rates instead 4. You are paid cash for ancillary work that is outside of your normal contract. Take a look at our FAQs to find out more about self cert mortgages and then fill in one of our mortgage finders for more tailored recommendations Q. Why look at a ‘Self-Cert’ loan? A. Self Certification mortgages allow you to borrow potentially larger amounts than the normal full status loan, as no proof of income is required. You simply sign a declaration to say that the loan repayments are affordable. Q. How much could I borrow? A. Its possible to secure you a loan of up to £1million in this way! Q. What checks are made on my income? A. Some lenders will want to write to your accountant to verify that you are trading but on the whole the underwriting of your loan should trigger no income checks at all. Q. Will I pay a higher interest rate? A. Due to the greater risk associated with lending on a self-certification basis, lenders have traditionally charged higher interest rates than those available through more mainstream channels. Over the past year Contractormoney been able to secure self certification terms on mortgages with a number of High Street lenders and can now offer contractors access to the far lower rates normally only available to ‘full status’ borrowers. Q. What size deposit will I need to find? A. Unlike our contract-rate based mortgages (where we have access to schemes that require no deposit at all) ‘self-certs’ generally require 10-15% deposits. To secure the more competitive, High Street lender schemes that we have negotiated, we will need to provide a deposit of 15-25% of the purchase price. Q. What are the charges? A. As with all services that Contractormoney provides for ContractorUK visitors, we charge none of the usual brokers fees associated with other advisers (these can sometimes amount to as much 1%+ of the loan). With a self-cert mortgage you will pay the usual valuation fee, legal fees to your solicitor and may pay an arrangement fee to the lender depending on the type of scheme you go for. Q. How long does the mortgage process take? A. Depending on which lender we eventually agree is best for your circumstances we can have approval of your loan within minutes. Once the survey has been done and the necessary legal searches performed by your solicitor the whole house buying process generally takes 3-4 weeks max Q. What supporting documentation will I need to provide? A. We would ordinarily just need ID. Q. What is a mortgage indemnity and will I have to pay it? A. Indemnity premiums are a hefty fee that many lenders will charge you if your unable to put down a large enough deposit. This protects them (not you) against your defaulting on the loan and leaving them a debt higher than the value of the house. Contractormoney will always attempt to avoid lenders that charge this costly fee. Q Will I have to accept costly loyalty clauses to secure a mortgage? A We pride ourselves on always securing you competitive interest rates whilst avoiding schemes that feature stings in the tail. Too many contractors have been tempted by lenders offering a low headline-grabbing rate only to find that they suffer long periods at higher rates with penalties that are charged if you attempt to break free. We can recommend a competitive selection of schemes that will allow you complete freedom to move your borrowing at any time or at the very least allow that freedom as soon as your current rate expires- allowing you to move onto the next good rate as soon as this one ends. Q. What will happen to my mortgage rate after the initial scheme expires. A. Too many people allow inertia to set in once an initially competitive interest rate expires. We will be in touch 2 months before the expiry of any special rate that you may be on so that we can explore the options available if you. We will look at what is on offer from the current lender and compare this with what is available elsewhere in the market. If appropriate we can often arrange a new lender to pay all fees to move your loan across to their schemes. In this way Contractormoney will be on hand to keep an eye on future market conditions and will help to ensure that you secure a competitive interest rates throughout the life of your mortgage Q. Will I need to take out compulsory insurances with my mortgage? A. We will always try and ensure that there are no hidden shocks when we make a mortgage recommendation to you. We will avoid schemes that insist on you taking out uncompetitive home insurance etc. We also avoid lenders that insist that you must take out life cover although as IFAs we would always recommend that your debt is properly protected and will be happy to provide no obligation advice on this subject. Q. What next? A. Simply complete a mortgage finder and one of our qualified mortgage advisers will quickly be in back in touch by email with some recommendations to exactly fit your mortgage requirements. Previous Page
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