Dangers of self cert mortgages...

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Self Cert mortgages simplify the lending process, as no proof of income is required to qualify for these types of mortgages. The ability to certify your own income is therefore very useful for the UK self-employed and for people who receive income from a variety of sources, which can make proving affordability difficult.

The advantages of self cert mortgages are well documented; however, there are also potential pitfalls that also need to be considered. Because no proof of income is required for most self cert mortgages, there is an obvious danger that people will exaggerate their income, thereby over-committing themselves.

A BBC documentary in October 2003 highlighted these problems, showing some unscrupulous lenders and brokers actually advising their clients to exaggerate their income in order to secure bigger mortgages. So, although self cert mortgages may be a viable option, you should always remember to be realistic about your income and what is affordable for you.

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