Self Certification of income is a facility offered to applicants who have a genuine level of income, but who may find it dificult to prove this.
Below are examples where self certification may be applicable. Please note that these are fictional and may not represent your own individual circumstance.
The examples are intended to be a guide and each individual case will be assessed on its own merit and subject to our criteria.
alburaq Self Cert Examples
1. Self Employed People with no recent accounts to reflect their declared income
Mr Khan is an Architect who has been self employed for 2 years. During this second year, trading has been much better and there has been a significant increase in his income with plenty of new projects yet to start. His accounts are still to be finalised and he will be unable to provide them for a few months.
For self certification applications we do not need to see accounts. We just need Mr Khan to complete the income self certification declaration on the application form.
2. Employed with a low basic salary and high commission
Mr Nawaz is a car salesman earning a basic salary of £10k and commission each year of £15k. For a self certification application Mr Nawaz can declare his full earnings of £25k. This is different to a conventional finance basis, as he would be required to provide a full breakdown of his annual salary. It is likely that the commission element would only be considered at 50% ( ie £7,500 ) and this would reduce the amount of finance available to Mr Nawaz, as the calculation we would be working on would then be an annual income of £17,500, rather than the full £25k.
3. More than one job or a variety of employment types
Mr Ahmed is a self employed taxi driver and his earnings are from both the cab fare and tips. Mrs Ahmed is a full time History teacher, but in the evenings, weekends and school holidays, she is also teaches the Qur'an on a self employed basis. These additional incomes are taxable but can be difficult to prove to a financier/lender.
On a self certification application, Mr Ahmed will declare his total income figure, including the tips and Mrs Ahmed can include both her sources of income. Under conventional finance, the tips and Mrs Ahmed's second job could not be included in the total annual income when calculating the amount of finance available to them.
