Could this be the end of self cert?

merlinbailey

My partner is self employed and works abroad, has a default 4.5 years ago.

As banks with self cert/sub prime seem to be in trouble, does this mean we wont see any suitable mortgages in the future?

We have just decided to pull out of our house purchase, because we are going through GE money and they have suddenly increased their rate by 1.6% on two year fixed, and with house price falling....afraid of negative equity in the future.

Our plan is to dave more deposit, over next 6 months. This would give us about 30% deposit.

What do we do if there are no products available!!!!!

Help! Are we panicing for nothing?

_Andy_

Does your partner not have any proof of income?

merlinbailey

No he has no proof of income, as he works abroad.

he does have bank statements and contract reference.

herbiesjp

Some lenders would accpet that as proof of income though

Is he on a basic salary? Which country does he work in, and what currency does he get paid in? Does he live abroad as well or does he travel back and forth?

Ian_Griffiths_Halifax

Why worry over something like this. If you can save a 30% deposit and expect to be able to add to that, then I assume you would have no problem finding rent payments. Why get your self all worried? It's not like you are having a house repossessed.

Chill and be thankful that you have money in the bank to tide you over if the economy goes pop.

merlinbailey

He works in Greenland, gets paid through an agency.

Salary is £1600 per week.

merlinbailey

Yes I can see that as a certain perspective!

And I understand that we are fortunate in many ways, we just want to make the right decisions both financilly and emotionally.

It was heart breaking to make the decision to let our first and dream home go, however, we will try to take your obviously well ment advice........and CHILL!!!!

herbiesjp

merlinbailey wrote: »

He works in Greenland, gets paid through an agency.

Salary is £1600 per week.

Well I know nothing about the purchase that fell through or the figures involved, however I am sure that there may be a few lenders that will be flexible enough to offer you a deal on a non self cert basis.

It really boils down to how a case is explained to a lender to make it look as attractive as possible, so am I sure that at the LTV you are looking at you will be fine

I'd definitely go via a broker who would try to place your business on standard rates first though as opposed self cert

merlinbailey

Thanks......we just need the reassurance that we are making the right decision and that in 6 months ish we wont be mortgage pariah!

herbiesjp

You shouldn't be lol

But who knows which lenders will still be aroound in 6 months time, or what they will have changed their criteria to be? :rolleyes:

merlinbailey

Well as already said in other areas and postings it's not possible to say what will happen in a few months....it's all a gamble.

We have pulled out of the sale today...an intrest rate at nearly 10% is not a comfortable place for us...not to mention house price drops...credit mess...negative equity....scary!

Keep saving for know. I'm sure with more than a 30% deposit in the future we will be able to get something.