Re-mortgaging and self cert questions....

Baby_Depardieu · 8 May 2006 at 10:02AM

Hello,

I dont know if anyone can offer any advice or help. Im fairly naive when it comes to the whole remortgaging scenario so any suggestions or pointers in the right direction would be MOST appreciated.

Situation is this:
Took out a joint mortgage to get our house in July '04 with Standard Life with a discounted variable rate. This rate will end this July, resulting in higher mortgage payments.

When we took out the joint mortgage myself and my partner were both earning. Since that time, we have had a family, i have made the decision to not go back to work whilst my child is very young and he has become partly self employed. (He has a part-time job 3 days a week and runs his own business as well)

Whilst his salary has gone up, we wouldnt be classed as earning as much what we did when we got the mortgage - so he is thinking that we would need to do a self cert mortgage? Is this correct?

I would really like to know what the options are for us? We would like to re-mortgage to get a better rate of interest but due to our changing circumstances feel like we may be trapped with the mortgage we have...?
Obviously money is tight, managing on one income, but its a sacrifice we decided to make to bring up our kids.

Thanks for reading,

herbiesjp · 8 May 2006 at 10:22AM

Opting for a self cert does not actually change the amount you earn, or the multiples a lender will use.

What is the property value?
What mortgage amount is needed?
What is his PAYE income?
What is his self employed income?

Do you have any other debts? cards/HP/loans etc?

AndrewSmith · 8 May 2006 at 10:25AM

Hi ,

On the face of it yes, a self certify mortgage may be appropriate in this case. It allows you to declare income that you maybe cannot prove via audited accounts, and also will allow multiple income streams to be included as one single income figure.

It does, however, not change the amount that you actually earn.

To self certify you would normally also need at least 15% equity in the property. Beware of companies offering self certify and charging excessive fees on entry, which are then added to your mortgage.

If I were you I would seek further advice from a suitably qualified professional, as the exact details may vary dependant upo your personal circumstances.

Hope this helps

Andy

Baby_Depardieu · 8 May 2006 at 10:50AM

Thanks for the responses so far...

We have our daily living expenses down to the real essentials and pay off a couple of credit cards, but nothing that really stretches us. There is no HP or anything like that...

I think there is about 85 - 90% LTV on the property, although it may be nearer 80% best case scenario.

Mortgage on the property is approx £180K and gross income is around £40 - 50K per year currently - although with it being self employed this amount can vary.

payless · 8 May 2006 at 11:18AM

Have you asked existing lender waht they will offer as a new rate !

Obviously a lender ( talking general , not this particular lender) won't always have the lowest rates, and may restrict some rates to new borrowers , BUT if looking at a new rate ( rather than borrowing more) lenders usually don't require income figures to do an internal rate swap , and particularily if comparing with new lending on self certs , the inhouse swap could be competitive ( on rate and fees)

herbiesjp · 8 May 2006 at 1:06PM

Emma - please start your own thread, as you have seen that many issues have been confused lately.

Thanks for your understanding

herbiesjp · 8 May 2006 at 1:16PM

But it is not what the OP has asked.

The OP has the right to ask a question

So do you

But please have the courtesy to start your own thread and people will answer question separately, and not get confused with who asked what when and where.

Again I thank you for your understanding

herbiesjp · 8 May 2006 at 1:22PM

emmaHarris wrote:

payless, just as a matter of interest & learning...do mainstream lenders provide self-cert options (without accounts) and if so which ones?

However you ask the above question which is different!

I am just doing this for ease of reading for the OP

I'll ask again very nicely

Can you please start your own thread? Is there any reason why you cannot?

Thakns again for your understanding

emmaHarris_2 · 8 May 2006 at 1:26PM

Hi herbiesjp, Ok I 'think' I have understood and thank you. I have done that now.

emmaHarris_2 · 8 May 2006 at 2:25PM

and this is a typical response, so why would anyone serioulsy consider advice taken by payless a non expert in this forum?

herbiesjp I followed your advice.

http://forums.moneysavingexpert.com/showthread.html?t=194710

payless · 8 May 2006 at 2:29PM

My comment

Have you asked existing lender waht they will offer as a new rate !

Obviously a lender ( talking general , not this particular lender) won't always have the lowest rates, and may restrict some rates to new borrowers , BUT if looking at a new rate ( rather than borrowing more) lenders usually don't require income figures to do an internal rate swap , and particularily if comparing with new lending on self certs , the inhouse swap could be competitive ( on rate and fees)

Then I get

emmaHarris wrote:

and this is a typical response, so why would anyone serioulsy consider advice taken by payless here?

Emma
have you read THIS

Re-mortgaging and self cert questions....

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