Lockhart Grey Financial Planning Ltd

Non status mortgages are mortgages for people who cannot prove their earnings for a variety of reasons. e.g. there are many individuals who do not work for a typical organisation and may instead receive a cheque every week or when completing a work task.  These individuals include freelancers, commission workers, the self-employed, and also individuals with bad credit.

If you drop into the non-status mortgage category, you may be concerned how you can be authorised for a mortgage if you can’t prove your income. The answer to this is you add up all your earnings and your ability to repay the mortgage repayments to the lender.

When completing a non status mortgages application, you must be as honest as possible when filling in the forms because you will be required to pay the non-status mortgage loan back and the last thing you want to do when buying a new home is over extend yourself to the point of not being able to make your monthly obligations.

Make sure you do not exaggerate your earnings in the hope of receiving a larger non-status mortgage loan. This is not smart as it must be paid back and will affect your credit ratings and you may lose your home if you don’t keep up with the repayments. In light of this, it makes sense to simply state what you believe to be your earnings and your true ability to pay. Non-status mortgages also require a large deposit.  Because of this larger deposit, some people find non-status mortgages difficult.

However, while a large deposit may be a drawback to non-status mortgages, a benefit is that although you cannot prove your earnings you can still be authorised for a mortgage loan. This is very important because by standard measures individuals who qualify for non-status mortgages do not qualify for standard mortgages.

This is a great benefit and it outweighs the downfalls. Also, even individuals with poor credit can receive these types of worthwhile loans and frequently the lending institution does not even check their credit.

However, poor credit mortgages exist and because of this individuals with credit problems should investigate those types of mortgages first.

People with non-status should adhere to non-status mortgages and realize that although they will have to pay higher interest rates and deposits, they are being given an chance at home ownership without ever proving their earnings which is a great opportunity that should be taken up a person needs to go down this non status mortgage route.