Self-cert availability on the wane

Self-certification mortgages now account for less than 2% of the mortgage market, according to Evaluate Technologies.

The loans, which are a vital source of funding for self-employed people or anyone with an irregular income or income from various sources have all but dried up leaving the self-employed struggling for mortgages.

Just 2% of all fixed-rate deals available are self-certification mortgages and variable deals have now been completely withdrawn. This equates to a tiny number of products with just 22 fixed-rate deals available.

Twelve months ago – before the most vicious phase of the credit crunch - self-certification mortgages accounted for 6% of all fixed-rate deals and 14% of variable deals. Borrowers were able to choose between 55 fixed and 105 variable products.

And going back further to December 2007 - before the credit crunch took its full toll, self-certification mortgages accounted for almost 17% of the mortgage market and borrowers could choose between 247 fixed-rate products and 134 variable deals.

Julie Speed, national accounts director at Evaluate Technologies, said: “The plight of the first-time buyer has been well highlighted but the self-employed have been equal victims of the shrinking mortgage market. Lenders have sought to de-risk their mortgage offering and anyone whose income is difficult to prove is by definition a higher risk customer.

“Honest, hard working self-employed people have few options to choose from and brokers face a stiff challenge finding suitable products for the self-employed.”