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When can you apply for the self-certification mortgages?

October 14, 2019 by matthewradcliffe  

The Self Cert Mortgage are been banned in UK however you may still be offered by the lenders that are based in Europe. Below mentioned are the reasons that why they such kind of loan is banned and why you must be much vigilant when you decide to use the international lender for your Contractor Mortgages.

 

It is important that you should think vigilantly before you secure different debts against your house. In such a case you home might get reposed in case you does not keep the repayments upon the mortgage or other kind of debt secured upon it.

 

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If you are looking to Buy To Let Self Cert Mortgage, so you need to explore places other than the UK as such kind of loans are banned in the UK. The loophole means that you could also get one from the lender who is based out at Europe. On the other hand,  FCA which is also known as the Financial Conduct Authority has also issued the warning about risks to get the mortgage from other countries than the UK.

 

In case you are self-employed, you can still apply for the mortgage from various lenders. You may also simply compare the deals or can find out much detailed information about self-employed mortgages.

 

What does self cert mortgages means?


The Self-certified mortgages allow you to specify how much you will be able to learn when you apply devoid of supplying any kind of the documents that could help to prove your income. These are mainly designed for the borrowers who are well capable to prove how much will they earn. It mainly includes:

 

-        Self-employed people

-        Those people whose source of income is from various different places

-        Those People having the low basic salary that can simply earn most of the income with the help of commission

 

Why such loans have been banned?


The Self certification mortgages got banned in the UK during the year 2011 because of different kinds of the concerns which the borrowers were given mortgages as they are unable to afford. Lenders also have to ensure that the borrowers will be well capable to repay the amount of the mortgages.

 

The rules of FCA mean that the lenders should always run the complete and detailed checks about affordability with each mortgage application. They even need to get the proof of your income for the reason that the regulations state lenders "should not accept the self-certification about the income".

 

Can you get the self cert from the European lender?


Certainly yes, in theory you can also get the loan from the lender which is based out at Europe. The rules which apply to the lenders operating from other places of Europe are certainly less strict; this means that it will be certainly possible to offer online self-certification mortgages in just a few clicks.

 

The company to provide them to set up firm in Czech Republic but quickly reached their capacity of lending and also had to stop taking the applications.