If you ask yourself – do self cert mortgages still exist – look for the answer at the end of this post. Let us explain you first what are self cert mortgages. Self-Certified Commercial Mortgages are commercial mortgage loans issued by a lender requiring limited proof of income or business accounts. The process of obtaining a non-status self-cert loan is significantly simpler than status-based commercial mortgage loans that are offered by High Street lenders. This makes the process of obtaining the money faster, involving significantly less investment in time than when securing a status-based mortgage loan.
The Self-Certified Mortgage Application Process
The applicant completes a commercial mortgage application form and signs the contract stating that they can afford to make the monthly mortgage payments. The applicant also authorises credit checks and access to additional information relevant to the application. A commercial property valuation is instructed. (The cost of the valuation is payable upfront. Costs vary between lenders, and are based on rate-scales.) Depending on the results of the valuation and credit checks, there may be a requirement to provide additional information. The lender will make the provision of such information a “condition of the loan” if an “Agreement In Principle” is issued. Following the successful assessment of the application the loan is then awarded within days. The whole process can take as little as 2-3 weeks, but may be held up by factors such as:
Delivery of supporting information
Obtaining commercial Insurance cover
Whilst there is no requirement to provide business accounts or business plans when applying for a self-cert commercial loan, the applicant will be credit checked and will also have to provide supporting documentation relating to their primary residential mortgage, bank account, residency in the UK etc.
Unfortunately the answer to the question: are self cert mortgages still available in 2013 is NO.
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