Self Cert Mortgages - do they still exist??

aimingforadebtfreelife

I have always took a self cert mortgage (done by mortgage advisors) in the past because our family income is made up of a lot of benefits - eg tax credits and dla etc etc.

We had to move house quickly due to personal reasons and currently rent out our property whilst we rent ourselves (we tried to sell but the market was flat). With the sales market picking up in the area if we sold now we can bank £30k equity. However the prospect of a new mortgage is worrying me in the current climate.

I earn £16k a year, and get approx another £7k a year in benefits. The house we are looking at is £170k and can put down £30k leaving a £140k mortgage. Ideally need a 4% interest rate :rolleyes:.

Any ideas on the market at the mo.

Many thanks

dunstonh

No chance on those figures I'm afraid.

Soot2006

I earn £16k a year, and get approx another £7k a year in benefits. The house we are looking at is £170k and can put down £30k leaving a £140k mortgage. Ideally need a 4% interest rate

Even if ...
16 + 7 = 23
Being reeeeeeeally generous 23 * 5 = 115
.... Still leaves you 25k short of being able to afford that house.
And it seems very unlikely that you'd get 5 times that "income" anyway, I'm afraid .
+ 4%? No chance ...

Mrs_Bumble

No way, sorry. Self Certs have all but dried up and very stringent the 'income' has to be there to support the amount borrowed, the tax credits won't last forever and usually the DLA is reviewable, particuarly in the current climate of the Government reviewing this type of benefit.

There are some lenders that will take into account some benefits but you are looking to borrow way over what would be considered affordable.

aimingforadebtfreelife

Thank you for your responses. I just wanted to put my thoughts out into perspective. It was 3 years ago since my last mortgage and it appears its going to be an uphill struggle to get back on the property ladder. But hey ho....

SouthCoast

currently rent out our property

to get back on the property ladder

But, but, but.........................

you are already trapped in the mortgage debt pit.

koexelek

Mrs_Bumble wrote: »

No way, sorry. Self Certs have all but dried up and very stringent the 'income' has to be there to support the amount borrowed

I bet a lot of self employed people are going to be "earning" a lot more from now on

The withdrawal of the self certs is great news for the Inland Revenue:cool:

Mrs_Bumble

koexelek wrote: »

I bet a lot of self employed people are going to be "earning" a lot more from now on

The withdrawal of the self certs is great news for the Inland Revenue:cool:

Oh and pray tell me how we end up so very cynical lol :rolleyes:

FraudBuster

koexelek wrote: »

I bet a lot of self employed people are going to be "earning" a lot more from now on

The withdrawal of the self certs is great news for the Inland Revenue:cool:

It will make no difference to HMR&C as the incomes never existed in the first place.;)

The earnings of Esqulant and his relative, as stated in the mortgage applications, were much higher than their income as declared to HM Revenue and Customs (HMRC). For his mortgages he stated that his income ranged from £210,723 in 2004 to £338,750 in 2006 and £301,920 in 2008 while HMRC records showed an income range from £75,702 in 2004 to £61,198 in 2006 and £55,786 in 2007.
The mortgage application for his relative stated that she was the self-employed proprietor of a pub with an income of £138,500 in 2007 while according to HMRC records her income for the 2006/07 tax year was £8,000.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/094.shtml

Conrad

I'm having clients ask thier AccounTants to maximise or increase earnings despite the increased Tax liability. As ever the Govt are out of touch and unaware of the bounty comming down the road at them.

mpg

koexelek wrote: »

I bet a lot of self employed people are going to be "earning" a lot more from now on

The withdrawal of the self certs is great news for the Inland Revenue:cool:

I have a friend of a friend who earnt 64K last year but after deducting HMRC allowances Ie.Mileage,use of home etc
then his pre tax earnings were 33K.

If he wanted a mortgage he would obviously ask his accoutant not to claim certain allowances to make his pre tax earnings closer to what he actually had, he would then take a hit with the IR this year and claim allowances as normal after he got his mortgage