Any self Certification mortgages out there?

mushroom333

husband has been a self employed project manager for 5 months and has another contract lined up until the end of the year. We have an excellent credit history but, we want to move and it will have to be on a self cert basis - any ideas as to where we go from here?:(

herbiesjp

No self certs around anymore.

_Andy_

Why does it need to be self-cert? Surely there must be some form of income proof.

Conrad

No self certs, but a small building society can take a view as long as you have some income evidence of sorts. Depends on loan to value etc.

herbiesjp

mushroom333 wrote: »

husband has been a self employed project manager for 5 months and has another contract lined up until the end of the year. We have an excellent credit history but, we want to move and it will have to be on a self cert basis - any ideas as to where we go from here?:(

Before turning self employed was your husband in the same line of work?

If so, some lenders may take a view on this track record and be flexible in underwriting combined with the contract already set up.

You'd need a good broker to position the case in it's best light to get this through.

However the most important details are missing:
1) Property price
2) Deposit
3) Income

Can you provide these?

mushroom333

many thanks for your replies - we would have around 100,000 deposit after selling our present property and look to borrow around 150,000. With earnings of 4,500 a mth before any outgoings are considered.
He has been in the same line of work for 15 years and has never been out of work during this time!

Do you think our present high street bank lender HSBC may look kindly on us and be able to come up with something? Thanks:)

Leon_W

"Do you think our present high street bank lender HSBC may look kindly on us and be able to come up with something? "

I doubt it.

Why no proof of income ? Tax return ? SA302 ?

mushroom333

he has been self employed for 5 months - so there is no proof of income as yet - excuse my ignorance but what is a SA302?

Leon_W

(SA302) It's a Self Assessment tax return and lenders will usually take these.

As he's only been self employed 5 months then he wont have one.

To be honest, I have every sympathy for you as I personally think that the self employed have been hardest done by in this mass clamp down (panic) on lending criteria. It hardly encourages people to try and make a go of self employment if they realise that most lenders will want 2 to 3 years accounts does it ? It kills dead any entreprenurial spirit.

I didn't agree with the excesses of the self cert market at its height (90% with adverse !) That is plainly ridiculous, but some sort of mortgage should be available to someone like yourselves with a big deposit and more of a "reasonability" test for income, like bank statements for instance. Unfortunately there isn't.

I had a self employed author come to me who had banked with HSBC all her life with obviously very erratic income, book deals in different countries, forward contracts the lot, simple it wasn't but you would have thought HSBC would take a view. They did. No way ! Thanks a bunch. I placed it but is was extremely hard work and at least I had some form of income proof. You do not.

Now, as Conrad says, some lenders will take a view but I wouldn't hold your hopes up given your circumstances, the 5 months self employed really is the killer and I can't think of anyone that would do this in the current climate.

Others may disagree but that is my honest opinion. You'll not lose anything by asking HSBC but if they are not interested I can't see anybody else being either. I just hope we see a return to a bit more sense surrounding lending decisions that could be easily made in situations such as yours.

£100k deposit. Mortgage of £150K . Where is the risk to a bank in that ? There is none.

Hope it works out.

herbiesjp

HSBC should be your first port of call - they should be the ones who can see your income etc and be in the best position to agree this.

However, if they were to decline, then you could have some other limited options, but as stated it would need to be positioned in a good way for the lender to agree to the mortgage.

mushroom333

thanks all for your thoughts, esp Herbies and Leon - I will keep you posted as to HSBC, what they say to us will probably be of interest to others in the same situation. Will also be contacting Parasol who also advertise all of market mortgage searches for contractor engineers/professionals...wish us luck!:j