What is a Self Certification Mortgage?

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  • Written By: Garry Crystal
  • Edited By: Niki Foster
  • Last Modified Date: 16 October 2019
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A self certification mortgage is a mortgage that allows you to declare how much money you earn from employment. The self certification mortgage was first used around ten years ago. It was established mainly for small businesses and self- employed earners who did not have the required three years income evidence that lenders require.

The self certification mortgage is not just for self-employed workers. Anyone who earns money irregularly can benefit from a self certification mortgage. People who are in seasonal employment or people who earn their money through commission, such as salespeople, will find the self certification mortgage helpful. One of the main ways a self certification mortgage differs from other mortgage types is that you may be asked to put down a higher deposit. You may also end up paying a higher interest rate on your mortgage loan.

Borrowers who obtain a self certification mortgage may find that they need to put down a deposit of 70 to 80% of the value of the home. When applying for a self certification mortgage, you must show a lender statements of your bank transactions. The lender will use these to verify your gross income throughout the year. If you already own a home, you may also need to provide your mortgage statements.


You may not be asked for any proof of how much you earn, but do not be tempted to exaggerate or lie about your earnings. The Financial Services Authority (FSA) has very strong rules on this matter, and it is a criminal offense to lie about your earnings. If you lie and are found out, then you might receive a criminal record. Also, if the loan is larger than you can afford, you may not be able to keep up with the repayments.

There are a variety of interest rates available for self certification mortgages. They are higher than standard mortgage rates, and it makes good sense to talk to your mortgage broker before making a decision. He or she should be able to advise and provide information about self certification mortgages that are not available elsewhere.


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