Specialty loans such as buy to let and the very popular self certification mortgage are both suffering greatly in the current economic situation. These loan types are a large portion of many specialty lenders portfolios, but unfortunately these are the same lenders who are struggling under many loans which are showing the most deterioration due to the economic downturn that is being felt so far and wide. This means that there are less funds available for self cert mortgages since these lenders do not have it to give and more traditional lenders try not to do these higher risk loans.

Of course what this means for the self employed individual who wants to get a self certification mortgage is that these loans are getting harder to get. To increase your chances of receiving one of these specialty loans you will need to have good credit as well as a decent sized down payment on the real estate you are wishing to buy. This will take a lot of the risk involved with such a loan for the lender, which will increase your odds of receiving the loan and ultimately calling that home your own.

Many self employed or commission based workers are unaware that self certification mortgages have been established for situations just like theirs to assist them in getting into a home loan. Many lenders will not work with someone who cannot adequately prove their income to verify their ability to potentially repay the mortgage as it is negotiated.

Anyone with a irregular income is eligible to receive a self cert mortgage and for many this is the best option since their income levels are hard to verify. The borrower is required to state their income on a mortgage application, and the mortgage broker has the option to ask for bank records or previous mortgage statements to get a feel for the borrowers true ability to repay the loan. Many question what will truly stop a borrower from lying about their income especially if the mortgage broker does not check bank statements on their account. There are laws in which those who lie on a mortgage application can face criminal charges even when the mortgage broker encourages such behavior. For those interest in a self certification mortgage they should approach a qualified lender and let them know they have a irregular income and would be interested in applying for just such a loan.