Changing work patterns sparks shift to self-cert mortgages

Workers swapping their nine to five routine for self-employment and temporary contracts are increasingly moving towards self-certification mortgages, according to My Mortgage Direct.

The company said that it had seen a rise in the number of enquiries about self-certification mortgages in recent months from Britons who were earning enough to pay their mortgages, but were dismissed by mainstream lenders because they didn't have pay slips to prove their income.

Self-certification mortgages are offered on the basis of income and do not require documentary evidence, so can be suitable for borrowers who can't prove their income because it comes from several different sources, or who have a business that hasn't been trading for long enough to have accounts information for the required number of years.

More and more workers are moving towards self employment and temporary contracts as employers seek to reduce the amount of responsibility that they have for pensions and benefits, the company said.

Some borrowers who thought they were suitable for self-certification mortgages may find they fit mainstream criteria, as lenders become more flexible to reflect changing employment patterns.