Looking for a "true" Self Cert Mortgage

NPowerUser

Self 45 years old - self employed 4 years, no accounts, net income about £300 a week. Therefore looking for true self cert.
Wife 47 years old - employee earning £7K, wages slips and P60's going back years.

We have been 2 years mortgage free and obviously hold the deeds to our current house.

Looking to buy house worth £155K, with £130K available from sale of house after fees, solicitors etc so need to borrow £25K.

Is it possible to get a 10 year mortgage with someone, with little or no upfront fees, fees payable on completion of new house purchase through deduction from loan amount or from my solicitor?

What sort of end fees would I be looking at and what sort of repayments. Could an IFA point me in the right direction.

I got knocked back from the Coventry based on an initial email so I guess they are not doing "true" self cert.

Its perhaps a bit unusual but seeing as over 80% of the houses value will not need financing surely someone out there can help. With the lender holding the deeds surely we would not be too much of a risk?

All thoughts and suggestions welcome.

neverdespairgirl

As you've been self-employed for 4 years, your tax returns should help?

koexelek

Surprised about Coventry.
They definitely do self cert for the self employed.

Did they decline you for some other reason ?

Bank of Scotland are another one worth trying

NPowerUser

koexelek wrote: »

Surprised about Coventry.
They definitely do self cert for the self employed.

Did they decline you for some other reason ?

Bank of Scotland are another one worth trying

No other reason than they wanted accounts which I don't have. I reckon with the credit crunch etc they may have tightened their lending policy? The stupid thing is just on my Mrs wages, we would only be looking to borrow just over 3.5 times her earnings.

You would have thought with a potential 80+ % equity being paid into the new house we would be classed as fairly low risk, not as if they would ever have touble getting all their money back if we ever defaulted.

koexelek

NPowerUser wrote: »

No other reason than they wanted accounts which I don't have. I reckon with the credit crunch etc they may have tightened their lending policy? The stupid thing is just on my Mrs wages, we would only be looking to borrow just over 3.5 times her earnings.

You would have thought with a potential 80+ % equity being paid into the new house we would be classed as fairly low risk, not as if they would ever have touble getting all their money back if we ever defaulted.

Weird ...

Coventry do their self cert via their Godiva brand. Perhaps they will only do self cert via brokers, and not direct.
They should also do 3.6 times income on your wife as well

Abbey and Nationwide are also worth a try, using wife's income alone

HelpWhereIcan

NPowerUser wrote: »

No other reason than they wanted accounts which I don't have. I reckon with the credit crunch etc they may have tightened their lending policy? The stupid thing is just on my Mrs wages, we would only be looking to borrow just over 3.5 times her earnings.

You would have thought with a potential 80+ % equity being paid into the new house we would be classed as fairly low risk, not as if they would ever have touble getting all their money back if we ever defaulted.

With that level of equity and only needing 3.5 times your wife's salary you do not need self cert of any kind.

There are plenty of lenders who will assess affordabiltity just using your wife's income so I would steer well clear of anyone suggesting self cert.

The big 5 will all do this as will most other 'high street' lenders.

Your main issue will actually be that the loan amount needed is below £25001 so you may well be restricted to the likes of HBoS, Abbey, Nationwide, Yorkshire Bank.

Yours is not a difficult case

herbiesjp

You already had a thread asking for the same help here:

http://forums.moneysavingexpert.com/showthread.html?t=1123293

And as in that thread the answer is still the same - you do not need to self cert

Tiddler_2

As various people have said, you don't need a self-cert mortgage.

Presumably you do declare an income via your self-assessment tax returns - the lender will accept those as proof of your income (even if it is as low as your £5000 or whatever, tax allowance so you don't pay tax.)

If you have children in full-time education you may also be receiving tax credits which the lenders take into account aswell.

Obviously I would recommend speaking to a broker (as several other brokers have) to use their knowledge & expertise, but if you don't want to do that look at the lenders HelpwhereIcan has suggested - particularly Nationwide as they generally do not reduce the amount available to take dependents into account.

dunstonh

Is it possible that a £25k is too small for some lenders? I know some have a £30k or £40k minimum nowadays.

Also, whilst you dont have accounts, you should still have tax returns that you submitted and HMRC confirmations of how much income tax was payable on how much income. They would act as proof of income. Only if you were defrauding the tax man would you have an issue there!