Getting a Mortgage Without Proof of Income, Is It Still Possible?
If you’re looking at getting a mortgage with no proof of income you’ll find lenders far more rigid in their response than a year ago. The liquidity crisis is definitely playing a pivotal roll in the tightening of lenders criteria.
However it is still possible to get a mortgage or remortgage with no proof of income. The preferred self-certification mortgages that lenders will still make an offer, is where there is plenty of equity in the property.
Lenders are still willing to lend on this basis because self-cert mortgages amount to around 6% of the mortgage and remortgage market.
So for those people looking at getting a remortgage with no proof of income, it’s still possible to do if they have either a 25% deposit for a mortgage. Alternatively they must have equity left in the property of around 25% for a no proof of income remortgage.
These products are called self cert fast track mortgages, because without proof of income they are far quicker to process than traditional mortgages.
But, as with general mortgage self-certs, not asking for proof of income means fast track mortgages are also open to abuse. However lenders are taking a tougher stance in the current market situation due to their new found allegiance to prudent lenders. Lenders state that the additional safeguard with fast-track mortgages is that the lender reserves the right to ask for proof of income if they choose. but rarely do unless they suspect fraud.
Some will say this is a bit like shutting the gate after the horse has bolted. However self cert mortgages and self cert remortgages with no proof of income, have an important roll to play for millions of people unable to prove their income but who can readily afford the mortgage payments.
It even possible to get a bad credit self cert mortgage with no proof of income, but it’s getting more difficult every day. If you need help in this regard just give The Bad Credit Mortgage Centre a call…
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