The FSA announced this week that they are likely to pull the plug on Self-Cert Mortgages

In a controversial announcement the financial services regulator revealed that they are looking to introduce compulsory verification of borrowers income which will effectively kill the self-cert mortgage market. This comes as no suprise following recent developments in the industry which has seen Nationwide, one of the last remaining lenders, pulling all of their self cert products from the market.

Contractors and the Self Employed seem to have been caught in the cross fire as the FSA has been keen to appear to be clamping down on the unruly banking sector. Just when the country needs Entrepenuers the most, the net result of the move could be to force them back in to permanent employment in order to obtain a mortgage.

As far as Redego clients are concerned, the death of the self-cert mortgage may come as alarming news but it is certainly not the end of your home ownership dreams. ContractorFinancials are specialist mortgage advisers  who work on behalf of our clients and have negotiated contract based underwriting with lenders that can help ensure you can borrow the same, if not a higher amount, as when you were a permi. Their contract based income verification allows you to borrow without the high interest rates and fees that were often associated with Self Cert mortgages and could offer a life line to those Contractors who are coming to the end of a discounted or fixed term or are looking to purchase a house in the future.

Going directly to a lender and asking for a mortgage based on your contract rate would almost certainly end in failure as they will probably look at your short term contract and assume that you cannot afford the repayments. However, ContractorFinancials are able to secure your mortgage based on a multiple of your annualised contract rate alone which means you don’t have to worry.

With schemes available for Freelancers who are even within the first week of starting your first contract, there is a solution to fit almost all needs and the advisers charge Redego clients none of the usual brokers fees.

Contact Simon Foster on 0845 062 8888 , email simon@contractorfinancials.com or get in touch with Redego.