New Rules for Self-Employed Remortgage

New rules for the self-employed remortgage starting in 2011 will be more regulated than before, possibly freezing out first time home owners as well as some searching for a remortgage, namely the self-employed.

The benefit of the current self certification remortgage is that you simply sign a declaration regarding your income. This action alone confirms your ability to pay back the loan. This has been called a self certification loan.

The self certification remortgage as well as other types of loans will be going through a major revision in 2011.

Now the regulations will require that a borrower prove income through pay stubs or tax reports. For the self-employed proof over a 2-3 year period will be required for approval in many cases. Those studying the revisions are suggesting that a self-employed borrower seek the advice of a remortgage broker who will be able on the behalf of the borrower search for lenders that will be willing to work with a self-employed borrower and the broker will be able to search for the best deals for their financial situation.

The plus side to the new rules concerning a self-employed remortgage, is that once income is verified, securing an ongoing rate is possible.