Self Certify

October 13, 2008

Self Cert in loan terms means that you are self declaring or self certifying your income. Your income may be derived from sources that are not provable, as in a mainly cash business or you may several income streams.The basis for a self cert loan is that you require no proof of income.

In the current climate, Self Certifying your income has become more difficult, with many lenders tightening their criteria and restricting loan to values and loan amounts.

Many lenders,When you Self Certify your income,may charge a higher rate of interest than a case which is considered a status case ie,employed with Payslips. This is usually due to the fact that you are a higher risk than someone with provable income. Even if your credit history is good and you have made all your contractual payments, you are generally considered a higher risk.

Self Certifying you income can be done in several ways,you may simply fill out a self declaration form, or you may be asked to provide proof of self employment, eg, letter from the Inland Revenue,or you may be asked to provide an accountants reference. The amount of information you can provide can have an effect on the available lenders and the rates. Generally the more information you can provide,the better.

For certain people, self cert with no proof of income is the only viable option. The key is to have as much information available to prove,if not income,at least self employment. Generally lenders want assurances that you are self employed.

Your cause can be greatly helped by choosing a good packaging company, who will have the criteria for all their relevant lenders, and will save you alot of time and credit searches, to help you through this and get you the Self Cert secured loan your looking for.

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