Self Certification Remortgages

The kind of mortgage you choose could well depend on the kind of employment you have - whether you work for someone or are self-employed.

In the latter case, the ideal choice of remortgage would be a self certification remortgage. In such a scenario, if you can't provide proof of your annual income via wage slips a self-certification remortgage is probably the best choice.

Choosing a self-certification remortgage requires that you to state the exact income you earn without having to provide independent proof of the same.

You would obviously have to substantiate your declared income with business account information. However, if your business is new and has been operational for less than a year, it restricts the number of remortgage lenders you can access.

You will also need to provide a hefty deposit because most lending companies will provide an amount totalling a maximum of 75% of properties valuation.

Lower Remortgage Rates

The main advantage of a self-certification remortgage, apart from the fact that there is no need for an independent income proof, is the fact that the remortgage rates are lesser than standard variable rates.

Most self-certification remortgages have competitive rates and when you compare these with the standard rates, which are 2-3% higher than current mortgage rates, you can quickly see the cost advantage.

There are numerous kinds of remortgage deals available in the remortgage market these days and when you are self-employed, you almost always have a time constraint.

If you want to apply for a self-certification remortgage, it is a good idea to get assistance from a qualified remortgage broker. Remortgage brokers have access to specialist kinds of remortgages such as the self-certification remortgages.

Possible Advantages

Whilst the fact that self-certification mortgages are ideal cannot be disputed, a self-certification remortgage might be useful in certain situations.

Typically, the deposit required for a self-certification remortgage is 5% but if you were to save up for 15-25% of the value of the house you will be eligible for a better interest rate.

By putting down a higher deposit, you run lesser risk of a negative equity and are perceived as a safer investment by the lending company.

You can easily use a combination of an existing self-certification mortgage along with particular options to alleviate your existing financial condition.

In the case where the source of income is fluctuating, opting for flexible remortgage terms wherein you can pay varying amounts is a good idea. If, on the other hand, you have enough disposable income at hand, opting for an offset remortgage or current account is a good solution.

Fees vs. Rates

It is vital that you check all the terms and conditions as specified in the self-certification remortgage contract.

If you are putting down a large amount for remortgaging, it makes sense to look at getting better interest rates instead of focusing only on fees.

On the other hand, in the case of a low remortgage principal choosing a deal where there are low revaluation and fees is a good alternative.

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