Self-certification mortgages 'a useful product for many Brits'Self-certification mortgages 'a useful product for many Brits'
Self-certification mortgages are a valuable part of the mortgage market and are capable of "bridging the confusion" for many customers with unconventional incomes.
This is the view of the Association of Mortgage Intermediaries (AMI), which believes there is "whole variety of reasons" why people may need a self-certification mortgage.
Self-certification mortgages are available to borrowers who are unable to provide proof of their income. Lenders require details of income sources, but not verification of total earnings.
Policy analyst for the AMI, Andrew Strange, said: "Self certification is about evidencing income and there's a variety of reasons why you might not be able to evidence your income fully.
"It could be that you're paid bonuses on commission or you're self employed; perhaps you're in dividends, as well as a small salary. It's a way of bridging that confusion."
Mr Strange's comments come after the Financial Services Authority said that some self-certification lenders are failing to monitor the application of their policies, resulting in the approval of "potentially unaffordable mortgages".