How To Buy A House With Bad Credit and No Proof of Income
The question; how to buy a house with bad credit and no proof of income is often asked and it’s becoming more and more difficult to answer due to the financial problems emanating from the worldwide liquidity crisis.
It’s particularly true today that if you’re self employed, a contractor or a freelancer and don’t have a regular income or have multiple incomes or earn the majority of your income from bonus’s or commissions, then you’re probable find serious problems getting a standard or high street mortgage.
Self certification, or self cert mortgages enable the borrower to declare their own income, as opposed to submitting the relevant documentary proof of income to the lender. This means you don’t have to produce pay slips or accounts to prove your income. Therefore a self certification mortgage is the route to take if you have no proof of income.
However, the situation will be further exasperated if you have a poor credit rating. Your bad credit will lead you towards getting one of the few bad credit mortgages left today. The fact that you have no proof of income will mean you also need to apply for a self certification or self cert mortgage. This coupled with your poor credit rating means you’ll need specialist broker advice to secure a self cert bad credit mortgage.
Just remember you can expect to pay a higher interest rate for the dual benefit of getting a mortgage with no proof of income together with a bad credit rating. But if it enables you to get on the property ladder or enables you to take the next rung up the property ladder you may think it a worthwhile investment, but that’s the investor’ decision.
In the past few months, there has been deluge of lenders pulling out of the bad credit mortgage or sub prime mortgage market. The result of this action has been a dearth of appropriate bad credit self cert mortgages available.
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