Millions Of Self-Employed Brits Turning To Self-Certification Mortgage Home Loans

For years self-employed Brits have found it difficult if not impossible to successfully apply for a home mortgage loan in the UK. Previously many UK home mortgage lenders simply saw home mortgage loans to the self-employed as being too risky. However, with the number of self-employed people growing each year, and with more and more Britons on short-term employment contracts, a number of UK home loan lenders have seen this niche market and have started to offer self-certification home mortgage loans.

Basically, under the terms of a self-certification home mortgage loan the borrower is not required to provide actual evidence of what they earn, but simply certifies to the fact that they can afford to make the home loan repayments. While this may sound dandy, most home loan lenders take are willing to accept this arrangement not merely out of the goodness of their hearts but also because they require the borrower to put down a larger deposit than other UK property buyers. As the deposit is the buyers contribution to the purchase price of the property, the lenders exposure to any risk that they will not be able to sell the property for the price of the outstanding home loan reduces. As such, UK home loan lenders are in a win-win situation by offering self-certification home mortgage loans to the UK’s self-employed.

The beauty of a self-certification home mortgage loan, however, is that it is not only limited to the self-employed in the UK. As mentioned, those on short-term contracts can also take advantage of the self-certification home mortgage loan. Another important group of the UK’s society who are finding it possible to buy their dream home in the UK with a self-certification home mortgage loan are those who have a bad credit history. While your credit history is important in deciding whether or not to lend you the home loan, if you are willing to put down enough of a deposit you may well find that UK home loan lenders are willing to offer you a UK home mortgage loan.

Little wonder then why the UK self-certification home mortgage loan sector is one of the fastest growing segments of the UK home loan market, now millions of Brits who previously had problems finding the money to buy their own home are finally being given the opportunity to enjoy a luxury that millions of Brits have long had – the feeling of knowing the home they live in belongs to them.

Richard Smith
12th October 2006