We do have the money but couldn't get up to the size of the loan we wanted to borrow on traditional income multiples."The couple contacted their broker, who suggested a deal with The Mortgage Works, the specialist lending subsidiary of the Portman building society."By switching to a self-certified deal, we have not only freed up some extra cash, we're now making lower mortgage repayments," adds Yelda.The Hancocks only had to declare their "disposable income" to the lender, but requirements for self-cert will vary. This means lenders now have to give homebuyers a clear statement of the full cost of any mortgage - while borrowers have recourse for compensation if they think they have been victims of mis-selling."Now that mortgages are regulated, it is vital the figures declared on an application form are realistic," says David Bitner of mortgage adviser Bradford & Bingley. But he urges people not to go down this route without trying the high street first. "Many people who are self-employed think they have no choice but to get a self-cert mortgage. This is not the case."In particular, contract workers with a regular income stream in a single industry could go straight to their bank."If you have a good track record, you may be able to go for a straightforward deal at normal rates," says Mr Hollingworth.

Three years' accounts is usually enough for a number of lenders. If the housing market plummets, you could also end up in negative equity.And crucially, it is a criminal offence to lie about your income on a mortgage application.Today, Britain has more than three million self-employed workers, many of whom will have had trouble getting a mortgage from a conventional high-street lender. Working on short-term contracts, for example, can make it difficult to provide a lender with a history of consistent income.The market for self-employed applicants is dominated by specialist lending arms of more familiar parent companies. Birmingham Midshires, UCB Home Loans and Mortgage Express, for example, are intermediaries of HBOS, Nationwide building society and Bradford & Bingley respectivelyTypically, a self-cert loan will come at a premium - expect to pay an extra 1 per cent compared with a "normal" high-street deal."Self-cert lenders are providing a niche product and will command higher margins This will be reflected in the cost," says Mr Hollingworth. Children must save £5 a month and the cash is locked out of reach for three years.While rates are important, they are not everything: giving your child a sense of responsibility for their money is just as vital. "He wants to draw together his finances to fund various ambitions, yet he has no real income."He should wait until he is in full-time employment, adds Mr Wotherspoon, before seeking to realise his dreams.As a starting point, Daniel should look at the interest he is paying on his various debts, says Patrick Connolly from IFA John Scott & Partners.

"He should then look to restructure the debt with the highest rate or move it [if possible], so as to reduce his overall interest payments."DebtsDaniel won't have to start repaying his student debt until he is earning £18,000 a year, says Mr Wotherspoon - so that at least can be deferred.Mike Pendergast at IFA The One Group says Daniel should look at ways of boosting his disposable income - such as living with his family instead of renting, or renegotiating his loan repayments so they begin at a later date.He could speak to both the loan provider and the university to explain that he has little income. Accusations, investigations, lies and suspicion have until very recently characterised the world of self-certification mortgages. "Self-cert" loans - allowing self-employed borrowers to state their income and rely on their individual credit reference for a mortgage, instead of offering payslips - came under fire recently from critics arguing they were open to exploitation. If annual interest earned from your own contributions to your child's account tops £100, it will be taxed at 20 per cent basic rate and deducted from your child's account. This problem can be circumvented, of course, by asking friends and relatives to make contributions, since all interest is then tax-free.. For convenience, many children's accounts are opened and operated by post, but try to get children used to going into a bank or building society to make deposits and withdrawals.To foster a mature approach to money, choose at the very least an account with a passbook to allow your child to keep track of their financial transactions, and to start to understand how saving works.Remember, too, that all children have their own personal income tax allowance. This means their money will be tax-free as long as - like everyone else - they do not breach the annual allowance (currently £4,745 and rising to £4,895 in the next tax year starting on 6 April).To make sure the interest earned is paid into their account without tax deducted, you need to fill in an R85 form - available from banks, building societies and tax offices.Once the account is set up, you may want to add to it yourself - but tread carefully. "Providers are moving away from simply offering freebies and gimmicks, and are now combining these with more competitive rates."Parents seeking an account for their children must look further afield than their own provider, he adds.