Many people have problems proving their full income. This may be because you are paid commissions, have more then one job, have investment income or maybe your income is derived abroad.
If you are self employed you can have particular problems proving your income either because you do not have enough years accounts or maybe you have used all the legal methods available to minimise your tax liability.
Types of Self Cert Schemes
Self cert schemes can be grouped into four types:
Fast-track
Minimal Checks Made
True Self Cert
Fast-Track
Some lenders offer the option of not asking for proof of income as a way of speeding up the application process.
Generally they will allow this if there is a large enough deposit, normally at in the reqion of 15% to 25% deposit.
While in most cases the lender will make no checks, they do though reserve the right to check your income if they wish. You are expected to be able to prove your income if you are asked to.
Minimal Checks Made
In these cases you state your income and the lender will take the figure on trust. They will though contact your accountant or employer or they may want to see your self-assessment forms (with the figures blanked out) in order to check that you have been in self employement or in your current employment for the particular lenders minimum required period.
Sometimes lenders will ask your accountant to confirm that they think you can afford the loan.
True Self Cert
There are a number of schemes available where the lender will not make any checks on your income or employment.
These schemes can be particularly useful if you do not have an accountant or if your income is derived from a number of employments or other sources.
