Self Certification
If you are self-employed and want to take out a loan you may well be asked to provide self certification. All it means is that you sign a document asserting that you earn a specified amount of money, which the lending companies need to determine how much you can borrow. You may have to back up the self certification with a confirmation from your accountant that the facts you have provided are correct.
Self certification is necessary when it is difficult for someone to prove their income. The typical person can point to regular wage slips for example as an effective proof of income. A self-employed person cannot do this, or can only point to irregular income, which doesn’t reassure the lenders, hence they need the self certification as some sort of guarantee.
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