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Mortgage Nonstatus | Mortgages News

Mortgage Nonstatus



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Traditionally, the nonstatus mortgage was a financial product that existed to allow self-employed people to buy their own home but it has broadened out to include people in various other forms of employment in more recent times.

If you’re self-employed one of the main disadvantages can be proving your income when it comes to buying a home and more importantly being able to put mortgage finance in place to actually purchase that home. For example, one way in which you may run into difficulties is that even if your accounts are in order, they may have been prepared by a person who doesn’t have the proper official qualifications. In this scenario everything would be in order yet it would still be difficult to get the mortgage lender to actually accept the numbers involved.

This is where the nonstatus or self certification mortgage product can come into the equation. Generally, because the income of the self-employed person is more difficult to prove the financial calculations for a nonstatus mortgage would put less weight on income and require the potential borrower to put down a larger deposit to offset the risk to the mortgage lender. This is the main way in which the nonstatus mortgage is different from the standard calculations.

As said earlier, originally, this type of product was almost exclusively for self-employed people but that has broadened out in recent times to include people in types of employment where they may get paid reasonably well for short periods of time and then be out of work at other times. The primary purpose of this type of mortgage product is to allow people who can actually afford to buy a house to do so by working around the fact that their methods of income do not fall within the standards which are normally liked by mortgage lenders.