Self Certification Loans

Many different types of loans are now coming back to the market after the crash of 2007; one product we are seeing more often is the self-certification equity backed loan.
 
The majority of borrowers with hard to document income are either self-employed or commission based employees. Borrowers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt your application.
 
Most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a self certification home equity loan, your gross income can be used for qualifying purposes as opposed to the net income.
 
In order to qualify for a self certification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a self certification loan does not require you to document your income, some lenders may require that you have a certain pound value of assets on hand which must be verified. High asset values with low borrowings against them will hugely help you to get secured loans.
 
AtPledge have a variety of loans that may suit your purpose, we loan when others won’t, so please contact us now on 0800 810 1111 to discuss your needs.