Ahead of the credit that is infamous of 2007, the self-employed could submit an application for a ‘Self-Certification’ mortgage. The self-employed did not have to prove their income; they just informed the mortgage provider on what they earned, which inevitably led to problems with these loans.
The self-certification home loan had been sooner or later dubbed once the ‘liar loan’ as people abused the machine by exaggerating their profits to achieve a more impressive mortgage. Unsurprisingly, this resulted in a ban on self-certification mortgages in 2014.
Today, that you have a reliable income that can cover the monthly repayments of a mortgage, as well as meet a number of additional eligibility requirements if you’re self-employed you need to prove to a lender.