Self-Certification mortgage - Advice needed!

cjones_3

Hi All,

Im a presently working as an IT contractor (have been so for 6 months) previously to that have always been in "permanent" employement.

Im looking to move house, my house has been valued at 120,000 and I have 46,000 mortgage outstanding.

Im looking a houses no more above the £160,000 mark. And so will be looking at a mortgage of £90,000 maxium (56% approx).

My contract has just been renewed for another 3 months, but we all know that such jobs are quite fickle, how do mortgage lenders view such applicants? Will I get a much worse rate than I would do if I was in "permanent" employment.

I have savings of 35k, so I could increase the deposit on the house to say 85k and so apply for a mortgage of 75k (47% of house value). Could anyone supply any advice on whether I would be better holding onto those savings (it would still leave me with 20k) or put it towards the mortgage ?

Has anyone got any advice on self-certfiication? I would prefer to use main lenders - would that be a problem ?

Thanks in advance for any advice.

Epiphone

A lot of contractors use contractormoney.co.uk or .com, can't remember which. Are you going through your own Limited or umbrella company? You may need more than 6 months accounts for a high street lender.

Forgot to say, your accountant or brolly should do you a reference letter too if you ask.

cjones_3

Hi Epiphone,

Thanks for the reply, just had a look at their website .. sounds interesting.

It looks like their fees are 0.6% of the loan amount is that correct?

I have a Limited company but to be honest I not knowledgeable enough on such matters to know if thats a difference.

Looking at some older posts on here, it has been mentioned that having a large deposit might mean some lenders such as the Halifax might be interested .. so i'll check that out too.

Thanks again .. much appreciated.

Epiphone

Not sure about fees etc cause I've never used them, just heard good things about them from various contractors.

You're probably best having a chat with your accountant, that's what he's there for! Get the lazy !!!!!! working

herbiesjp

Do you have proof of your incoem i.e. bank statements etc.

There may well be some high street lenders that could look at this for you.

I would always recommend trying to get the mortgage agreed on this basis as opposed to self certified if possible - as the rates are better

stanmoresaver

There well may be some lenders who would look at this for you at mainstreem rates- don't be confused between specialist self cert lenders and lenders who choose to fast-track and not take references.

Hope this helps

SS

loobs40

cjones wrote:

Hi Epiphone,

Thanks for the reply, just had a look at their website .. sounds interesting.

It looks like their fees are 0.6% of the loan amount is that correct?

I.

I used contractormoney and they get their commission from the lender, so I didn't pay any fees. I am self employed (not Ltd company) IT contractor with no accounts . They work on your contract rate and I also needed 6 months bank statements. I got a normal high street rate and was very very happy with them.

cjones_3

Many thanks to everyone for replying .. really please ive found this forum .. very helpful advice.

I do have proof of income i.e. bank statements and I recieve a pay analysis breakdown each month from my accountants/management company. I also of course have details of my current savings.

A quick question on what herbiesjp said relating to the mortgage being agreed on this basis .. does that mean that the mortgage would be agreed on existing savings or current monthly income ? Sorry if I sound a bit thick on this .. its just that the self-certification is a new concept to me.

Thanks again everyone.

herbiesjp

If it is based on your income, and you have the proof of that income, then you will not be self certifying - you will use a lender that will accept those items as proof of income.

loobs40

The mortgage I got through contractor money was not self certification because I gave 6 months of bank statements