Self Cert mortgage with RBS

Topchick_dav

has anyone gone with the Royal Bank of Scotland for a self cert Mortgage?

Could anyone give me more information on self cert

Basicaly, I am a childminder and my self assessments dont show a high profit/income so I dont want to be showing them. I have also taken on more work since Jan 09 so my income has doubled since last years self assessment.

I have done a budget plan and can see we will easily beable to afford mortage repayments of up to £800p/m. The house we want to buy will cost £142000

We are also going with RBS as we have the 25% deposit from the mychoicehomebuy (they buy 25% of the house which we pay back when we sell) scheme and there are very few banks that will work with this scheme

Any advice?

silvercar

Self cert strictly means declaring the income you have; at any time, even after an offer, the lender can ask for more information. You may be better off showing the information you have and explaining that you have taken on more work and so will make more money.

I'm guessing from your job that your returns show a high expense ratio to income and you are worried that RBS won't consider that the expenses are high to minimise the tax. A broker may be your best bet, then should know how best to present the facts. If you have to go with RBS you may want to use an in-house broker, they should know the likelihood of being accepted.

silvercar

See a broker.

A letter from your accountant may help demonstrate your expected higher earnings.

herbiesjp

So you need a mortgage of approx £106k

You have Net profit of £8000 and OH income of £9600 (£800x12) - so total income of £17600

Based on those figures you will not get the mortgage

Even if your income does indeed double - you will struggle to get the mortgage agreed

The problem you have is also the fact not all lenders look at the "My Choice Open Market HomeBuy scheme"

herbiesjp

RBS do not do self cert mortgages though

As silvercar states above, you will need to see a broker.

Has the scheme not offered you a panel IFA? As they would need to go over the affordability with you as well.

You also pay interest on the equity loan, and this would need to be considered in the affordability calculation when looking to get the mortgage agreed.