self cert help

lee777_2

Hi, can anyone offer any advice , my situation is that i own a small business and am just starting year 3. year 1 and 2 were very poor income wise but i am expecting this to be a good year (even tho theres a recession) i am looking to move to a house worth £250000 i have a 25% deposit i am looking to get a self cert with no accounts as my accounts show poor profit. i am currently with nationwide never missed a payment and have a1 credit history does anyone know of any lender out there and possibly what interest rate they charge. thanks in advance ,any input would be gratefully received . i have made a tentative enquiry to nationwide and the said they would require an accountants certificate which i know is not possible as i am taking a gamble to an extent on future earnings, but to be fair isnt everyone when they take out a mortgage cheers

Robert_Sterling_3

You do not say what your accounts would show for year 1 and year 2.

_Andy_

So you have a bad two years and are 'hoping' to have a good year - is this really such a good time to be buying a house?

lee777_2

hi year 1 £15000 year 2 £30000 thanks for the advice andy i am already paying mortgage fine and my proposed move would mean around £100 week extra (at a reasonable rate)and if i couldnt afford this i wouldnt be able to afford the one im paying so if i have a chance of bettering myself now i will take it i dont have a cavalier attitude but as i said in my first post life is a gamble and at the end of the day the proposed lender would have 65k of my money
all i am requesting is if there is anyone with info on any current self cert deals (if any)so i can weigh up my options or whether to wait a couple of years regards

herbiesjp

Some lenders will accept a projection from an accountant for year 3, as long as it is based on true and accurate calculations.

This way you do not need a self cert mortgage, and hopefully you will have access to better deals.

What do you project will be your NET profit for year 3? What do you base this assumption on (i.e. signed contracts)?

betmunch

If you have your accounts easily to hand I dont think you should be getting a self cert mortgage. They are for people that have trouble proving what they earn.

Cheers

Conrad

Some brokers recommend fast track with the likes of Nationwide, Abbey or Halifax as a surrogate self cert. FT is a convienience to speed up the process for those with high credit score. You should be aware that the lender may request proof of income at any time.

Some brokers don't seem to be aware that lenders FT terms state the bropker HAS SEEN AND EVIDENCE the clients income regardless of whether FT is granted. This means for example Abbey could demand to see this evidnece later on - say if the client gets into arrears.

lee777_2

thanks for the tip conrad, i have spoken nationwide today and will know in a couple of days if i am eligible for a fast track or (turbo) as they call it application.what they say is i have to go thru application then someone higher will assess whether i am a safe bet or not (even tho accounts not up to spec) seems the only viable option . hows this for a laugh a broker got back to me today 10.5% interest £3k set up which basically equates to £1080 at my current rate or £1850 at the 10.5% i think the !!!!! would be cheaper lol.....thanks again conrad i will post my result either way..