Self-certified mortgages are appropriate only if a client cannot prove their income to the lender.
For example, a client who has recently started a business and has no tax returns or accounts to prove how much they earn, may have to go down the self-certified route. As that client will be perceived as a greater risk to the lender, the rate of interest and monthly payments will be much higher.
Generally, ‘self-certified’ mortgages would be provided by sub-prime lenders.
Mis-sold Self Certification Mortgages
If you were an employee at the time you took out your mortgage and were able to provide proof of your income by submitting wage slips or by your accounts department at work confirming how much you earned, you should not have been advised to take out a self-certified mortgage. Subject to how much you wanted to borrow, the chances are that you could have had a mortgage from a high street lender at a reasonable rate of interest.
Even if you were self-employed, as long as you could prove your income by submitting tax returns or accounts, you should have been able to have access to a high street lender and should not have been advised to take out a self-certify mortgage.
We have found that it was often the case that brokers would recommend self -certify mortgages because of the huge commissions for placing the mortgage with a sub-prime lender. Broker fees of £4000 to £5000 were commonplace and these fees were paid to brokers for usually no more than three to four hours work.
Find out in minutes if you are eligible to compensation
If you cannot remember providing copies of your wage slips or the mortgage company contacting your payroll department at work, it may be that you ‘self-certified’ your income. We can obtain access to your mortgage application papers and will be able to find out.
If you are unsure of your mortgage, get in touch today to find out in minutes if you were mis-sold your self cert mortgage.
Contact our specialist Self-Certification team today on: 0800 083 6290 for a free, no obligation consultation.