Self Certified Mortgages For Contractors Are No More

Did you know? – Self Certified Mortgages are no more

Back in 2009 the Financial Services Authority (FSA) put an end to self-certification mortgages in an attempt to ensure that all borrowers prove their ability to repay in advance.

Self-certification mortgages were originally aimed at contractors, the self-employed and freelance/contract workers who had trouble proving their income and in many cases became the mortgage of choice for contractors on irregular income who struggled to secure mortgage borrowing with their bank..

Many contractors reading this may have had a self-cert mortgage in the past or may have been relying on one for a future mortgage.

At Contractor Mortgages Made Easy they are well aware that many contractors are perfectly capable of running a mortgage but may find it difficult to prove their income due to the tax efficient way that operate.

Contractor Mortgages Made Easy have worked effortlessly on behalf of contractors to educate senior underwriters at high street lenders as to why in many cases contractors carry a significantly reduced risk to lending.

As a specialist mortgage broker for Contractors they are able to help contractors secure mortgage borrowing with high street lenders taking the whole of your earnings into consideration.

“The fact that so many self-cert mortgages were granted to employed workers who could prove their income, and the high level of arrears associated with these types of loans shows that self-certification mortgages were being abused by both individuals and brokers. Contractor Mortgages Made Easy would not advise a professional Contractor or Freelancer to go down the self-certification route; if you approach a specialist contractor mortgage broker then they should be able to secure you a competitive mortgage that is based upon appropriate evidence of income”

It is the opinion of Contractor Mortgages Made Easy that “The FSA are correct to tighten up lending criteria, as any contractor or freelancer that can adequately afford a mortgage should have no need to go down the more expensive self-cert route to secure borrowing”

Another thing to consider for Contractors