Q&A

I am self-employed and think that I may need to get a 'self-certification' mortgage to buy a home. But I'm wondering if there is any chance that I could avoid this and simply get an ordinary mortgage instead.

This is quite possible - depending on your circumstances - and is well worth investigating since self-cert mortgages typically charge 1 per cent more than comparable deals at the moment.

Many lenders have recently become far more flexible with part-timers, the self-employed, people earning commission and others whose income may be variable.

Traditionally, self-certification was the route for people who could not provide three years of accounts, but adviser London & Country Mortgages says that 'a lot of lenders' will consider offering standard mortgages to people with 12 months' accounts and a projection for the next year as long as they can find a substantial deposit themselves (probably 25 per cent of the property's value).

However, your particular circumstances have a bearing. If, for example, you were working in the same line of business before setting up as self-employed, you may be able to argue that your income is quite predictable and that you would be a better bet than someone starting completely afresh.

You can do some research yourself - searching under 'self-certification mortgages' on the internet, for instance.

Moneyfacts (available at £7.50 per issue on 0870 2250100) publishes a monthly listing of financial products, including the details of 41 lenders currently offering self-cert deals. Knowing something about the market yourself is a very good starting point - but you may need to go to a mortgage adviser.