What is a non-status mortgage?
Non-status mortgage is an older, loosely used term. It is sometimes associated with lending where income was declared rather than fully verified, but it does not mean a borrower can bypass affordability assessment. For regulated mortgage lending, firms must assess whether the mortgage is affordable using appropriate information.
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Anyone comparing these terms can read more about second mortgage eligibility and what an assessment may consider.
What is the difference between status and non-status lending?
Historically, status described lending that relied on documented income and credit information, while non-status or self-cert was used more loosely. Today, the practical question is the evidence a lender requires for affordability. Requirements vary by lender and application, but regulated lending is not a no-check option.
The comparison below sets out how the historic language relates to current practice.
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No single product category described as non-status exists uniformly across the market today.
Are non-status mortgages still available in the UK?
The term remains in searches, but it is not a reliable description of a standard modern residential mortgage product. A borrower considering a mortgage needs to check the firm's permissions and the product's terms. Regulated mortgage lending includes rules on responsible lending and affordability assessment.
Historic self-cert residential mortgages are distinct from the current market, where affordability evidence is expected as standard practice under the FCA Handbook's mortgage conduct rules (MCOB). Anyone researching older terminology can cross-check current product information directly with a lender or regulated adviser rather than relying on a search-term label alone.
What evidence may be used to assess mortgage affordability?
Affordability evidence may include payslips, bank statements, tax documents, business accounts, contracts, pension or benefit evidence, and information about regular commitments. The documents requested depend on the product, income type and lender's criteria. Providing evidence does not guarantee a mortgage offer.
The proof of income for a second mortgage guide sets out these document categories in more detail, including the difference between evidence commonly requested from employed and self-employed applicants.
How can a borrower check a mortgage firm's status?
The FCA Financial Services Register can be used to check whether a firm is authorised and what permissions it holds. A search should match the firm's legal name and contact details, rather than relying only on a website or advertisement. Register information helps identify the regulated firm involved.
Checking the register is a useful independent step before proceeding with any mortgage enquiry, alongside reading the mortgage illustration and offer documents for the specific product being considered. More on how second charge lending is regulated is available in are second charge mortgages regulated.
Sources
- MCOB handbook (Financial Conduct Authority)
- Financial Services Register (Financial Conduct Authority)
- Consumer Duty (Financial Conduct Authority)
Frequently asked questions
Does non-status mean no credit check?
No. The phrase does not mean that no credit or affordability check takes place. Regulated mortgage lending in the UK involves rules on responsible lending, and a firm normally needs appropriate information about income, expenditure and credit history before agreeing a mortgage, regardless of older marketing terms used in the past.
Can self-employed applicants get a mortgage?
Self-employed applicants can apply for a mortgage, and lenders may consider evidence such as tax documents, accounts or business bank statements as part of an affordability assessment. The exact evidence requested depends on the lender and the applicant's circumstances, and providing documents does not guarantee that an offer will follow.
Are all mortgage lenders FCA regulated?
Not every firm offering credit is a regulated mortgage lender, and permissions can vary by activity. The FCA Financial Services Register can be checked to confirm whether a firm is authorised and what it is permitted to do. Matching the firm's legal name and contact details helps verify the correct record.
What is a self-cert mortgage?
Self-cert was a historic UK mortgage arrangement where a borrower declared income without the verification now expected under current affordability rules. Mortgages marketed this way are not part of the standard regulated mortgage market today, and the term should not be treated as describing a current, widely available product.