Tips For Self Certified Mortgage Approval

So the crunch has hit and the UK housing market is not looking too good. It means there are a lot less mortgages out there and a lot more lenders saying no. How can you still get hold of the remaining self certified mortgage deals? What do you need to do and what do you need to have to be at the front of the pack when it comes to securing approval?

There are a number of ways to make sure you are the best borrower you can be when it comes to a self certified mortgage - but none will guarantee approval. There is no definite way to make sure of getting a self cert loan, there are only tips and suggestions. The final decision is down to the lender.

First thing to do is to make sure you are financial healthy. That means sitting down and going through all your incomes, your outgoings, your dents and your assets. See what you are spending each month and decide whether you could cut down that bill. You will be amazed at how many people in the UK leave direct debits running for years, slowly wasting money each month. Ask yourself what you can do to make the most of your money. Maybe that’s cutting down on luxuries like second holidays or new clothes, or even small savings like walking to work or cutting down your energy bill. A lender wants to lend self certified mortgages to borrowers that can be prudent - so prove you can be too.

Next, check your credit score. Your credit score is what defines you as a borrower. Basically it is your credit history documenting who you have owed money to and how well you have paid it off. This can be seen simply and cheaply from one of the UK’s credit reference agencies and will give you a good idea to what sort of borrower you actually are. Also there may be mistakes or anomalies on your score that can be cleared and amended, so make sure everything on your score is true.

After you know where you stand now, make a plan of action. A self certified mortgage borrower has to be sure of their future potential as an earner, so look at your past finances and put together a prediction for the next few years. Will you be in line for more bonuses? Is your business on the up? Equally could you manage a self certified mortgage if things take a turn for the worse, if you lose your job or you are ill. A good self cert borrower has every base covered.

Ask a mortgage broker to help you go over your plans and your accounts. As well as having a second opinion, a broker may know things that you don’t, like  extra things you can do to make sure you are a sure bet for wary self certified mortgage lenders.