I think many of us are in financial dire at the moment and wonder whether this would still be the case if we weren’t constantly told about recession and our poor loans situations (see article) all over the news.  So is it just me who thinks that the population will always react to what we are listening to? Take repossessions for example, last summer there was nothing major on the news, no real life scenarios about Mrs Smith having her property repossessed - why?

Well, I’d say because last year there was no sensationalism in that story whereas now there can be. We’ve been talked up into believing there will be a major increase in repossession (and indeed there is, and there will continue to be so), but I’m convinced as a society, we just conform and do as we are told to do by what’s being televised. Mrs Smith might well have been irresponsibly leant money to, but not all repossessions are down to irresponsible lending and instead might be due to a change in circumstance (with inadequate protection in place to cover these eventualities should they ever arise), and thus financial planning (in hindsight) is paramount.

The most vulnerable are obviously those who have had problems in the past, not minor historic defaults as many high street lenders will consider you a prime case on anything of a low amount and which can be genuinely explained. I’m referring to those who, when they took out their mortgage, had recently been subject to some form of adverse credit such as a CCJ, major default or some mortgage arrears. So is it a good time to start looking at mortgages if you fall into this category? Well the answer is ‘maybe’! Because if you’re paying the lenders variable rate then it could be that you are in fact being penalised, and if you’re on the bank’s LIBOR rate (the inter bank lending rate) then again this is higher than the Bank of England’s base rate (If you’re not sure then you can check your original mortgage paper work but most sub-prime lending was based upon the LIBOR rate). However, if you’re currently on a fixed rate scheme or if the mortgage you have is based on the Bank of England’s base rate then you are likely as well to stay as you are. I would however, consider your overall financial planning and any protection needs you might have. I have listed some links below to find out more about current mortgage schemes, rates and new products because of the latest interesst rate movements.

• Mortgage Quotes for ‘Prime’ Borrowers (ie No Adverse Credit History)
  CLICK HERE >>>
• Mortgage Quotes for ‘Sub-Prime’ Borrowers (Any sub-prime or adverse credit mortgage lender)
  CLICK HERE >>>
• Loan Quotes
  CLICK HERE >>>

Mortgage Self Certification is the process of an individual, or couple for that matter, who needs to self certify their income due to any one of a number of reasons which may include, but are not limited to the following:

• Mortgage Self Certification - is needed because you are self employed and your business accounts do not reflect your true earnings. This may be because your business is involved in cash transactions which are often difficult to prove.
• Mortgage Self Certification - is needed because you are under time pressures imposed by a vendor of a property you wish to buy. Sometimes, particularly when buying properties up at auction or those that have been repossessed the agent or lender in possession will insist on a 28 day exchange of contracts. When this occurs it is quite justifiable to apply for a Mortgage Self Certification in order to speed up the mortgage application process.
• Mortgage Self Certification - has been recommended by your mortgage adviser for a particular reason. Again, when taking advice from a suitably qualified professional who is regulated by the Financial Service Authority a Mortgage Self Certification method may be recommended because the lender may have different criteria than on the mainstream application process. For example, a lender may be willing to lend up to four times the income and only half of any overtime and bonuses earned, whereas they may allow 100% of the overtime and bonuses to be included when applying for the mortgage self certification.
• Mortgage Self Certification - is needed because your income is encompassed from numerous different sources such as tax credits, employment, second jobs and so on. Not all lenders will allow the use of all types and sources of income but many mortgage self certification applications will allow it.