Mortgages question ?

[tatty head]

Hi,
Sorry another house question?
Does anybody have any experience of self certified mortgages i have tried looking it up and am confused to say the least but i feel this is may be my only option ?

I am self employed and my books dont make things look great .
Good for the tax bill but not great for a mortgage !

lotsa luv Tatty Head xxx

 

[Mini]

Hope this helps!

Self certified mortgages : Self Cert : Self certification mortgages :: Contractor UK

What does self cert, self certified or self certification actually mean?

If you are self- employed, you may simply not be able to prove your income in a form acceptable to a mortgage lender. An example could be no formal or recent accounts or accounts prepared by someone without the prescribed qualifications. You may also be an employed or self-employed person who has some buy to let or investment properties.

Whilst originally intended for the self- employed, the self cert concept has been extended to incorporate the employed market. For example, those who derive a large proportion of income from non-guaranteed sources such as bonuses, commissions and other allowances. A self-certification mortgage is ideal in this situation, as the lender will normally allow 100% of such income into the affordability calculation.

Traditionally, most high street mortgage lenders have taken a cautious view of the self-employed or others who find it difficult to confirm their income. Moreover, fluctuating bonuses or commissions might not be considered as permanent income and excluded from the affordability calculation altogether. A self cert mortgage provides a solution to this problem.

Lenders that operate in the self-certification mortgage market will use a similar method of underwriting to the mainstream lenders. However, as they do not ask a potential borrower to prove income, a slightly larger deposit is required to reduce the perceived risk from a lenders perspective. In all cases, it is essential that the borrower can afford to service the mortgage loan on an ongoing basis.
We know which lenders will accept your self cert circumstances, who offers the best self cert mortgage rates and who will provide the quickest self cert mortgage service.

Source: click on link below.

Self cert mortgage Self certified mortgage Non status mortgage advice

 

[xxluckyxx]

Ive got a self certified mortgage , it works for me , and i know of friends who have them too , i got mine thru my financal advisor , he works wonders for me . I went into the bank the other day thou and they told me that they do them too , not heard anything back mind but i do need to pop into se them some time soon .

My finacal advisor did all the work for me thou and the best of it is i didnt have to pay him anything as the companys he deals with pay him .

Good luck im sure it will all work out for you x

 

[tatty head]

Thank you Mini,
That is very helpful indeed it has put my mind at rest your a star ! :clap: :clap: xxxx

 

[tatty head]

Thanks Samantha,
Thats great i am quite excited i have an appointment with a financial advisor tomorrow i am so excited i hope i can get this done in time to buy my dream home before someone beats me to it ! :sigh: :tear_drop: xxxxx

 

[wannabeminime]

Even within the self cert market there are variables as to how much information they need. Some still want to see some evidence of income, others dont want to see anything except your signature saying you can afford it. Shop around until you find one that suits you, most lenders have a self cert these days. You will pay a sightly higher interest rate that a normal lender, but there are some good fixed rate mortgages around at the mo, with interest rates rising i think they are a good option! The internet is probably the best place to start your research. Also, make sure you go to an independent mortgage advisor (but they still have their favourites!).

 

[Redpam]

As my present mortgage is less than 5% of the value of my house I thought I would approach my building society for an increase to pay the balance on the house in Portugal. Even with the increase it would only be 25%. As I have just finished my first year as a CDC my accounts have yet to be done. What about this then, I am a fully qualified accountant but the B/S wont accept my accounts if they are prepared by me. WTF Also Nationwide dont do self certified mortgages.

 

[tatty head]

Thank you Bex,
I am seeing an independant tomorrow and now not dreading it quite so much thanks to all of you xxx

 

[tatty head]

Sorry to hear that Pam souns like you should shop around cant believe they wouldn't except your accounts i mean if there was a discrepancy surely you would be the only one to suffer ?? Especially with all that equity in your house, what a load of jobsworths !!!!!!!!
xxx

 

[tatty head]

Well been to see financial advisor and he cant get me enough i have the money he can see that but the books dont show it clearly and thats what counts to say i am gutted would be an understatement there are tears and lots of them i feel numb inside !
Now off to mope thanks everyone for your advice yesterday very kind xxx

 

[wannabeminime]

I think you should get a second opinion tatty, like i said, there are some that take income into account, and some that dont. If you have a substantial deposit they are more likely to lend, eg 25% of the value of the property or more. What % is your deposit??

 

[tatty head]

Property value £160'000 we have £90'000 we need a mortgage of £70'000 so that just means increasing our current mortgage by £37'000 !!!!

I can afford the repayments but i am self employed therefore untouchable!
Just spoke to my mortgage provider and they want to see my books which we have established are crap and i dont see the problem as all i want to do is double my current mortgage and double the payment term !!!!!!!!!!!!!!!!!!
Sorry head is spinning feel washed out !
All ideas greatly appreciated xxxxxxxxxxx

 

[wannabeminime]

With that size of deposit you should be able to get a self cert mortgage i think! See another advisor! I went to the mortgage shop;

The Mortgage Shop - Home Page

 

[tatty head]

:thankyou: Thanks alot for that link Bex,

Sounds like they really took care of you , thats just what i need hope they can sort me out too.
I have just emailed them hopefully i will here from them tomorrow your help is truly appreciated .
:thankyou: xxxxxxxxxx

 

[wannabeminime]

You're welcome, good luck!:wavey:

 

[wannabeminime]

Any news Tatty??

 

[tatty head]

Hi Bex,
We have decided to give it a miss now soooo much stress and just seems to be one cock up after another !

Things should be a bit easier next year so going to wait !

Thanks for all your help it was much apreciated ! :thankyou:

Luv Tatty xxx

 

[xxluckyxx]

Hi Tatty
Sorry things didnt work out as planned , but these things arent always straight forward are they .
I would get a second opinion thou . maybe in a few weeks when ur over this blow .

I went to my bank today to see if they could help lower my mortgage payments , they said they couldnt help when they went thru my account . they wasted my time basically .

I will however be looking on these links and trying to find a better deal !

Thanks for starting this thread xxx