Self cert Bad Credit?? Help!

slickboy

Hi I have been saddled with debts from my university days a couple of years ago, including my rent,tuition fees,overdraft and loan. They are nearly paid off (except for the loan!)
I joined my brother in business last year. The business was in trouble so the last year has been spent paying business debts off and getting things off the ground. As a consequence i missed many payments to my creditors and broke many agreements whilst trying to get the business sorted.
I have only once ever used a credit card and paid it off quickly and got shut and have never had a CCJ.

The business now looks set for success (well earned!) and from next month I expect to be earning around £35000-45000 pre tax profits per annum from then (maybee more).

I now want to buy a house with my brother who suggests self- certified (as we are self employed) in the short term untill we have a years good accounts behind us and then a regular mortgage. In my area we would need at least 100k. I know little about mortgages and wonder if this is a good idea, any advice would be appreciated thanks.

herbiesjp

This could be an option for you.

However you would really need to look at a copy of your credit report from Equifax or Experian - this will highlight what the lenders will see and whether you will be able to get standard rates, light adverse, medium advers etc.

You say you need a mortgage of £100k? Or is that the purchase price?

What desposit do you have?

slickboy

Hi, thanks for replying. We could get a deposit together of about £10-15K we reckon and the lowest we could expect to pay for a house in our area is about 100K. What do you think?

herbiesjp

As long as you have a 10% to 15% deposit there may well be some avenues to look into.

nmiah786

Is it not true that if you have a 15% deposit most self cert lenders do not ever come back with asking for proof of income. Where as if you had a lower deposit, say 5%, on a self cert mortgage it is possible that the lender may request proof of income at some point!!! I only ask because quite a few brokers have mentioned that to me, including a broker that I use regularly and is highly regarded!?!?!

AndrewSmith

You are very very unlikely to ever get a self certify mortgage with a 5% deposit. I've seen hardly any and I've been in the business 12 years.

Also the lender reserves the right to verify or check anything declared on the aplication form it wishes to. As they have absolutely no obligation to lend the money they can decline the application at any time without reason.

Andy

nmiah786

Andy

I think I wanted to put 10%....not 5%.

I understand you point fully. I understand that the lender is not obliged to lend you any money at all!!!

From your experience what would you say as a % in lenders seeking verification on a 10% deposit compared to a 15% deposit (hope this make sense)

Diplomatic hat off please

AndrewSmith

Probably not much difference, there are a few 10% deposit self cert mortgage out there with some good rates, 15% is better though.

Neither should causetoo many problems, but this is subject to knowing the full details of course.

Hope this helps

Andy

nmiah786

Ever the diplomat!!!

No, seriously I appreciate your comments! :beer:

AndrewSmith

:A

If you asking "can I get you a 90% self certify mortgage" then the answer would most likely be yes.

But it does depend on a number of things.

ARGHHH shock horror, he took his diplomatic hat off !!!!!!!!!