Self Cert

sKIDMARKS69

Who is the best lender to go to for self cert mortgages please? We have an unusual profile but have had self cert with the Abbey in the last 8 months. Sold a business and paid off our mortgage with them and now want another mortgage using our business to self cert. One has been trading since Apiril 07 and the first accounts show a loss. The second company has been trading for 9 years but due to the business sale and a small gap in trading prior to recommensing we have full accounts until Dec 2007 but nothing for 2008.
We own and have equity in our BTL property and own 2 other BTL properties with a combined rquity of £140k. The surplus income after paying mortgages on these properties is circa £500 although we have to date taken minimal drawings from our business although givien the currrent performance of the business we expect this to increase significantly.
C&G took weeks and weeks before turning us down and wouldn't look outside the normal parameters to see the real picture. We have gone back to the Abbey as they already know us and have a long track record with us over the years and although they had a valuation completed within a couple of days the rest is taking a very long time. The house we are purchasing is about to fall through as we can't seem to get approval from even the Abbey. Any advice would be much appreciated.

koexelek

Abbey are your best bet, if they will do it.

They used to "fast track " up to 85% but now only do it up to 75% if you get a very good credit score.

There are true self cert mortgages available elsewhere( as opposed to fastrack) but the rates and charges are horrendous

sarkin1

Only TMW and Platform are doing self cert now BOS and BM solutions pulled out last week.

sKIDMARKS69

We are only looking for 70% but the reason for the exceptional delay is that we don't fit the "usual parameters" of the self cert model I guess.
Thanks for the feedback so far. Mike

Conrad

C & G and others can consider fasttrack for high credit scores.

koexelek

Conrad wrote: »

C & G and others can consider fasttrack for high credit scores.

I have not seen a C & G fast track a case for ages now.

Last case I put through was 50% loan to value for a squeaky clean client of mine who has an A1 credit rating. They still asked for proof of income though ( which he easily proved). I drew the conclusion from that experience that fast track is not a current option with them.
None of my broker friends have had a fastrack on a case from C & G recently either.

mcrewe

Anyone got any ballpark %age figures on self cert - £80k mortgage - £220k property, interest only with good credit score.

koexelek

mcrewe wrote: »

Anyone got any ballpark %age figures on self cert - £80k mortgage - £220k property, interest only with good credit score.

For a true self cert, around 5.4%, which comes out at £360pm on interest only.

HelpWhereIcan

Remember that self cert does not allow you to make your income up, it just allows you to declare and use all of it without having to provide the usual evidence such as 3 years' accounts showing a consistent level of earnings.

You have stated that you have minimal drawings from the business but expect them to increase. In most cases you can only declare the income you have, not the one you expect.

If you are not able to back up your stated income with even basic evidence such as bank statements or one year's accounts you should not even think about using fast track.

Fast track is not self cert and the lender is more likely to request proof these days than before - even if they start off the application allowing fast track.

A good broker will be able to look at what evidence you do have of your current level of earnings and ascertain whether a 'mainstream' lender will take a view of your application bearing in mind equity etc or whether you will be best off with true self cert.

Whatever you do, do not fall for the temptation to submit false income details even if encouraged to by someone who should know better. Lenders are on the look out for fraud more these days and you may be surprised at what checks can be done in the background. A self cert application can lead to a request for proof of some or all of your income to back up what you have stated and simply withdrawing the application and applying elsewhere is not the simple, consequence free response some would have you believe.

Good Luck