Possibility of Self Cert for SO

lynzpower

A colleaugue of mine has done this, so thats how I know it could/ can be done, so just having a reckey round to see if its a viable option for us.

We have a Shared ownership flat, inner london, and we are currently paying on it MORE than if we had the mortage for 100% of it ( done a number of mortgage calculators) As we are already paying the figure already, are there products that we could access in the next year to be able to mortgage on the whole thing outright?

Im employed full time, and intend to be for the foresseable, OH isnt on my mortgage or lease, but if we went into it together, ( hes a temp on 10ph, but looking to go perm asap), Is this possible? ( im on 25k)

Every chance we will be able to borrow substantial money from extended family if needed, there is only 10k in the property at the mo.

this isnt something IM rushing into now, but one of my dreams has always been to do a VSO and I cant sublet my flat for the year- 18months i would be away. This is a real stuffer for us, which is why im asking the question. I asked my Housing association if I could sublet the flat to my sister for this time and they said no.

If its not possible, then we will probably sell it, but if it is, Id like to look into it as much as possible before we decide.

lynzpower

INcidentally, Im not asking which lenders etc, just if they are out there and if so its this feasible?

Anyone?

Ian_W

No expert lynz but 2 queries comments about your post and hope one of the brokers happens by soon.
1. If you buy 100% it won't be SO, so I don't think that should be an issue. It's a remortgage to buy out the HA and if you can through the equity and/or family raise 5-10% that shouldn't be a problem.
2. If you're employed and so is your OH why self-cert? They're for where income is difficult to prove rather than insufficient. Fsa etc are keen to crack down on abuses of them and if your income isn't enough and you inflate it for a self-cert then you could be guilty of mortgage fraud.

HTH.

Joe_Bloggs

There are not a lot of numbers to work with here, only sentiments. I dont think the OP (original poster ) can use the OH's (other half) income as it is temporary and regular but and not a permanent position of employment. Hence the self certification argument.
There may be buy to let considerations if the OP and OH choose to do VSO (voluntary service overseas) once they get a remortgage that can accomodate the full capital.
Perhaps the OP should do some financial projections based upon existing income. These projections should include paying back what you may have borrowed from family.
J_B, (Acronyms are OAPITA!)

lynzpower

Ok thanks for this guys

Ive got a SO flat bought 2 years ago for 199950.

My salary 25000
Oh 10p/h or equivalent to 20800 pa ( looking to go perm of course,not quite as easy as we thought, but hopeful
OUtgoings already rent ( 396) ( 60%)
IO mortgate (40%) 365
service charge will remain at 55pcm.
= 816

Basically, my thoughts are , from some basic calcs Ive done, is that our outgoings could remain fairly similar ( certinaly can stretch to a bit more) on the mortgage on the whole amount, yes, taking it out of SO,

I dont think i really mean Self cert, maybe I just mean, given were paying this out already, will any lender look to lend us on it. 5-10% from family isnt a problem, in fact we were thinking 15% might be achievable ( on top of the 10k already in equity)

Any thoughts?

Joe_Bloggs

The good news is you are managing to keep up your interest commitments on a property that you have a £10K stake in. There does not appear to be a repayment schedule even on the on this 40% !
To aquire the whole 100%, via repayment, may require payments close to £1100 per month over 25 years. The interest only is probably close to £800 a month.
As I see it, you can pay rent on a property or pay rent on money that bought a property. I can't envisage many lenders that would let you borrow that amount of money anyway. Clear your debts, even get into credit. Develop employment prospects. Research your financial options yourself. Stay attuned to what your housing association is up to.
Fortunately I am not a financial adviser and I can speak my mind.
J_B.

lynzpower

Nah thats fine, i appreciate that. As it is the debt will be gone on current projections by the time the mortgage comes up in December ( with extra income coming in as of next month) We are toying with the idea of, if we can do this this december, wed like ot look into it, otherwise we will be moving onto repayment as of december in any case. Thought Id mnetion this earlier, multi-tasking a bit too much tonight