Glossary of Self Certification Mortgages

Self Cert Mortgage

A self certification mortgage is when you cannot prove your income and therefore have to self certify your income in order to secure a mortgage.

A self certification mortgage is often applied for by those who are self employed, working on a freelance or contract basis or paid irregularly or on a bonus or commission scheme.

Non Status

Non Status is a term used by mortgage lenders for anyone applying for a mortgage or remortgage when they are either emplyed or self-employed, but cannot prove their income. You would then apply for a non-status mortgage or self cert mortgage (see self certification mortgage).

Self Cert Remortgage

Self cert remortgages can be obtained if your circumstances have changed and you are no longer able to prove your income or if you feel that you would get a better remortgage deal by self certifying your mortgage.

Dividends

If you are paid by Dividends, then you are payment are made to you - the shareholder - by a corporation. A dividend is paid when a company earns a profit or surplus and either re-invests this money or pays it to the shareholders.

Self Employed

Someone who is self employed is, put simply, a person who works for themselves and they draw income from their business. How much they pay themselves is usually down to the level of profit and how much is to be re-invested in the business for company growth and therefore this often varies from month to month.

Employed

If you are employed then you have a contract of employment between yourselves and your employer. This contract usually outlines how much you are paid and what it is based on.

Bad Credit

Your credit history is determind by several factors, but is in general terms a history of your past borrowing and repaying. This will also include information about your late or missed payments and any bankruptcy or CCJs. You will then have a credit score based on this data. If you have a bad credit score, then a self cert mortgage could help you to get onto the property ladder.

If you want to improve your credit rating, then have a look at our Ways to Improve your Credit Rating.