Self Cert Mortgage HELP!

steviestevie

I am living with parents at 29 and have decided to finally move out after hanging around for the housing market all this time with my girlfriend of 24.

The problem is that I have earnings of around £60,000 per annum but from various sources where I have been 'freelancing' around various countries and companies. I have no PAYE slips or job references as I have been more self-employed really but have no accounts. The only proof of earnings are through my bank accounts (although I have not kept bank statements!). Also, I have maintained a very good credit history for the last 4 or 5 years but I do still have some bad credit history from unpaid credit cards for around 6 months that isn't due too come off until next May. No payments missed for years though.

My girlfriend has pay slips etc but only for around £10,000 per annum.

We are currently looking at houses upto around £210-£250k.

The question is that with our situation as it is (e.g. no payslips/accounts, previous credit etc.) how easy or hard is it going to be to get a mortgage in this current climate? Can I still get a self-cert mortgage from a big bank like Halifax etc. or do I have to take a seedy route of dodgy brokers and backstreet lenders? And what will I need to get a self-cert mortgage? Or is there another route I'm not considering?

Also, we are only looking at around a £10,000 deposit as pretty much max - Is this enough nowadays with my situation?

Any advice of who to go through, how much it will cost and if I have any chance? I haven't applied for anything yet as I don't want needless searches to show up on my credit history if I have no chance.

Sorry, lot's of questions but obviously this will be a first time buy (living with parents at the mo), I hope you can help!

katiecoodle

hello - aren't you brave looking to buy at the moment? Congratulations tho to both of you.
I am due to remortgage with a self-cert in the next couple of months. Look at Nationwide, although I'm sure it's a subsidiary of theirs called UPC or something similar who are one of the big players in the self-cert mortgage market.
I'll read any other answers with interest...

steviestevie

Well we may possibly hold off due to the current market but that's what I've been doing for the last few years and its getting ridiculous now! What I really need to know is if I have a change of getting a mortgage and what sort of money I would need so if it's not realistic I can just get renting.

What will a self-cert mortgage want? Surely I can't just go in and say I earn whatever I want to say?! It can't be that simple. I'm also concerned about how much of a deposit I need now and how much ontop I need to account for fees etc.

minimike2

You will need at least 25% deposit in reality, unless you go down the GE Money route and get stung on rates and fees.

No doubt you need to see a broker to get a clearer picture and go through the options. To be honest on a case like yours I would be charging a fee, I doubt many brokers would take it on a commission only basis. As well as the deposit, you need to factor in stamp duty, legal fees, survey fees, moving costs.....it doesnt sound like you are ready for all of that to me.

steviestevie

Thanks for your reply. What is the 'GE Money route?'

minimike2

GE Money are a company that lend at higher LTVs on self cert products. They are a non-conforming, or "sub prime" lender.

They charge rates in the region of 8%-11% and have high fees.

My advice is carry on saving, or look for somewhere under £100k. Your deposit will not allow anything else in reality.

steviestevie

Thanks for your advice minimike. I am in the Southeast and for a 2 bedroom house I am looking at around 200k. Does that mean I seriously need 40k deposit PLUS stamp and fees?

Is a new build possible where they pay 5% deposit and stamp duty?

silvercar

Could you use your tax returns as evidence of your earnings?

hethmar

Im not sure how you can earn £60k a year and not have any accounts? How do they assess your tax? Not keeping bank statements is very easily sorted, you get copies.

Ian_Griffiths_Halifax

steviestevie wrote: »

I am living with parents at 29 and have decided to finally move out after hanging around for the housing market all this time with my girlfriend of 24.

The problem is that I have earnings of around £60,000 per annum but from various sources where I have been 'freelancing' around various countries and companies. I have no PAYE slips or job references as I have been more self-employed really but have no accounts. The only proof of earnings are through my bank accounts (although I have not kept bank statements!). Also, I have maintained a very good credit history for the last 4 or 5 years but I do still have some bad credit history from unpaid credit cards for around 6 months that isn't due too come off until next May. No payments missed for years though.

My girlfriend has pay slips etc but only for around £10,000 per annum.

We are currently looking at houses upto around £210-£250k.

The question is that with our situation as it is (e.g. no payslips/accounts, previous credit etc.) how easy or hard is it going to be to get a mortgage in this current climate? Can I still get a self-cert mortgage from a big bank like Halifax etc. or do I have to take a seedy route of dodgy brokers and backstreet lenders? And what will I need to get a self-cert mortgage? Or is there another route I'm not considering?

Also, we are only looking at around a £10,000 deposit as pretty much max - Is this enough nowadays with my situation?

Any advice of who to go through, how much it will cost and if I have any chance? I haven't applied for anything yet as I don't want needless searches to show up on my credit history if I have no chance.

Sorry, lot's of questions but obviously this will be a first time buy (living with parents at the mo), I hope you can help!

Could I just point out that the only thing that seems dodgy and seedy is you!

YOU are the one looking for a Self Cert Mortgage.
YOU are the one with Adverse Credit.
YOU are the one who can't prove his income.
YOU are the one who hasn't kept any Bank Statements for whatever reason despite being Self Employed.
YOU are the one who has no Accounts.
YOU are the one who is looking to buy a house based on an income that is not stable due to being from 'various sources'.
YOU are the one with only £10,000 deposit despite earning £70,000 between you and I assume not paying any taxes, as you have no PAYE slips and no Accounts, presumably because you haven't submitted any. Maybe because you were working in a Tax Free environment, but more reason to be able to save up.

Please don't slag our industry off when we are here to help keep such as you on the straight and narrow! :mad:

Kavanne

minimike2 wrote: »

You will need at least 25% deposit in reality, unless you go down the GE Money route and get stung on rates and fees.

Aaaah I was just wondering why my self cert was so easy... we had a 60% deposit!

All Standard Life wanted from me was ID (mortgage advisor did the rest).