Mortgage Types - Self Cert Mortgage CCJs

Self Certification CCJs Mortgages are also known as ‘self cert’ CCJs mortgages. Mortgage lenders most often use or determine the wages or salaries detailed in the pay slips to work out a person’s annual or monthly income and based on this, they calculate the total mortgage amount payable to them. Mortgage loans are available to both the employed and self-employed. Self-employed individuals often have the deposit to buy a house but lack the required or necessary documentation to prove or show their actual income.

So self-cert CCJs mortgages come in handy to people who are in the self-employed bracket. This type of mortgage is also useful and beneficial to people who have incomes coming in from various sources and do not have documentary evidence to support the same. Their salaries could consist of mainly bonuses or commissions. It could also consist of people who have money that does not reflect their earnings or type of earnings. 

The self cert CCJs mortgage market has actually grown in the last five years. Many mortgage firms and lenders are offering novel mortgage plans to cater to this section’s increasing demand. Being self-employed often does not let a borrower to qualify for any standard mortgages due to reasons like irregular earnings, lack of documentary proofs etc. A self-cert CCJS mortgage is where one confirms their income without any in-depth or detailed verification. Self-cert mortgage is an ideal option for the self-employed people. 

Nowadays, many lenders recognise the fact that regular forms of income maybe quite inadequate to cover situations. They are also aware that some borrowers can make payments but do not have sufficient documentary proof for the same. Generally, a very simple declaration of income is what is asked for verification. However, lenders who provide self cert CCJs mortgages do charge a higher interest rate. 

Some of the disadvantages of the self-cert CCJs mortgages would be, the higher interest rates and the loan-to-value ratio is usually lower. Also when opting for self cert mortgages, or raising additional funds against the property the costs for these transactions are higher and if one were to incur losses and is not able to keep up the payments then there is a risk that of losing the home. In addition, there are some additional charges, fees and levies. A borrower should give an accurate income statement and should not give false information as it is considered a criminal offence. Under self cert CCJs mortgages, a person should avail loans only based on what they can sustain in their present earning capacity as future income earnings cannot be determined because of many uncertain factors like business growth, market trends, earning capacities health etc. 

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