Self-certification or Self-Cert
This is were a borrower makes a statement as to his or her level of income and
then signs that that statement is true.
A self certification mortgage will normally go through with very limited status
checks and the lender will not seek such references as employers or accountants.
It is not designed for people to lie about their income it is for people that
actually earn more income than can be proved in the traditional way for example
an employed person my receive large bonuses and commission payments he or she
can self cert those payments. Also in the example of a self employed person they
might be claiming huge depreciation on assets this would mean that their net
income is low but it doesn't actually mean that they did not earn the money so
they would want to self cert that income.
Self certification mortgages will normally demand a minimum deposit of 15% of
the purchase price of valuation whichever is the lower.