How Do I Get A Mortgage With No Proof Of Income

Most mortgage lenders base their lending decision on your provable income. For an employee this would probably be the last 3 payslips plus latest P60. If you self employed the standard requirement is usually the last 3 years accounts.

However, many peoples incomes are not so straight forward; often employee’s salaries comprise of commission, bonuses or overtime which can amount to a significant proportion of their salary. Because these elements are not guaranteed some mortgage lenders may only allow a proportion of these earnings.

If you can afford the re-payments but can’t prove your income in the typical way you can apply for a mortgage that requires no proof of income. With self certification all income can be included in the affordability calculation.

For a self employed person their annual accounts are usually historic and reflect the income from the business from the past. When a business submits its accounts allowable expenses can be deducted from the income so the net profits can be distorted by unusual circumstances.

Self certification enables borrowers to declare all income on a mortgage application without having to provide proof of income.

If the mortgage is to purchase a property some lenders will request a larger deposit, usually around 10%.

There are now more and more mortgage lenders providing self certification mortgages that the rates are now only slightly higher than those offered on a status basis.

Self certification and no proof of income mortgages are not the same. In the case of self certification lenders will not normally request proof of income but they may at any time ask for proof and if it is not provided the application will not proceed. Lenders are obliged by the Financial Services Authority to check a proportion of all applications submitted this way also mortgage lenders reserve the right to share information with credit reference agencies if they suspect fraud.

With a self certification mortgage the understanding is that no proof of income will be provided. But lenders will still make enquiries and can still turn down applications.

To get help on a No Proof of Income Mortgage or a Right to Buy Mortgage UK visit the Heron Mortgages website and ask them for a quote.

Most lenders will carry out some sort of reasonability test, for example an office administrator declaring £50,000 is likely to be looked at quite closely. Some lenders may ask for proof that the business exists and is actively trading. This can be requesting letter headed paper or business card or searching on Yell.com.

Self certification can also be an option if you have a second occupation that is self employed.

If a business is newly established they may not have accounts or if they do have accounts they may not show much income. Traditional mortgage lenders may not be happy about lending to these businesses. However self certification is an appropriate option.