Self-cert mortgages have changed to remain relevant

The self-certification mortgage has been labelled as innovative by one expert.

Products of this kind are designed for the self-employed and those who have difficulty in providing proof of their employment.

Alexander Hall says that the deals are some of the most innovative in the market and have managed to change in order to keep up with the different needs of people in the modern world.

"Self-cert has been one of the key innovations in the mortgage industry, which has adapted with the changing circumstances of people," commented Andy Pratt from the firm.

"Some people have multiple jobs, some people are working on commission, bonuses, that type of thing. Without true self-cert products, those people in those types of situations wouldn't have been able to qualify for a standard product.

"More and more people these days have what I would call complex income structures – anything from trust funds through to commission, which is more standard – and therefore self-cert allows that to be taken into consideration," he continued.

Mortgage holders were given a boost this month when the Bank of England chose to maintain the base rate of interest for the third consecutive month, fuelling speculation that a cut may be on the cards before the end of 2007.

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