How to Find a Self Cert Mortgage

10-Aug-2007

Finding a self cert mortgage lender in the UK is not a difficult thing to do. With the deregulation of the mortgage market in 1982, the market expanded dramatically and many mortgage lenders and lending companies emerged to take advantage of the deregulation to attract potential customers. Self Cert lending is now a competitive business. Yet with the numerous opportunities, one still has to consider choosing the right self cert lender to approach. Many lenders have their own mortgage intermediaries that represent them or have independent intermediaries that do occasional work for them. Many may promise cheaper rates and easier financing, but other factors must be taken into account so that the process is done properly without hitches.

There are a few things that a potential borrower has to look for in a self cert mortgage broker:

Qualifications. Is the mortgage broker authorised by the FSA (Financial Services Authority) to give mortgage advice and to have authorised personnel that work under them? If they are not qualified, any borrower may suffer unexpected costs and damages, but they can complain to the company and seek just compensation.  Read: Is my mortgage broker FSA-authorised?

Level of service.  Every potential borrower needs to know up to what level of service the lender and its intermediaries can offer. Some only offer advice, some recommendations, some will even help you with your application from start to finish.

Charges.  Intermediaries get paid either by charging you a fee or they will be paid by the procurer.  You need to find out if any of these charges apply to you.

Interest Rate. Once a plan or package is decided, the intermediary should immediately inform you of any variable rates and when other payments should be made.

Early repayment charges. You need to find out if the lender will allow you to redeem your mortgage before it ending date. There are some self cert mortgage lenders that would not allow you to do so. You should also check the interest involved in an early repayment. More often that not, the interest charges are high.

Overpayments/Underpayments. Many mortgages offer the option for borrowers to make underpayments, overpayments and even take payment holidays. A payment holiday is quite useful if you think you are thinking of switching careers or if you take an extend leave from work. It is crucial that you find out about this option for it may help you make payments on time for this. You also need to find out if there any restrictions on by how much you can overpay your mortgage. 

If you'd like more information on a self cert mortgage or if you'd like to speak with a self cert mortgage broker, take a moment to fill out our short self cert mortgage form and we will connect you with a qualified broker from the SimplyFinance network who will be able to answer any additional questions you may have. They will also be able to search the self cert mortgage market to find the best self cert mortgage deal for you.