Self-certification mortgages - any brokers reading this?

dwsjarcmcd

bud-miser wrote:

Wrong.

I answered ALL questions aked of me - and very promptly. STILL I was met with a barrage of implication that somehow I was not disclosing what was needed - despite the fact that NO further questions were put!

Quite simply, there appeared to be a resentment that I should even broach the subject in the first place. That, I shrugged off.

What HAS annoyed me is the impugning of my integrity and the blatant suggestion that I was being dishonest. Clearly these people think they can recognise a crook when they see one.

I have already emailed a complaint to the site management and it is now up to them as to whether they allow this kind of conduct on their boards.

I asked for the facts, nothing else. Implicit in that was the idea that I could be viewed as having the intelligence necessary to arrive at my own decisions based on those facts. It seems obvious to me on re-reading the thread that this was not a concession they were prepared to make, quite apart from reading into my request the machinations of a dyed-in-the-wool villain.

The matter is out of my hands. I shall neither visit this thread again nor be asking any further questions of these alleged 'experts'. I don't enjoy being insulted gratuitously.

I have read this thread and I think you were given the correct 'information' right at the start. Go speak to the Abbey. You have chosen to ignore it. No broker (or anyone else) could provide a recommendation witout knowing basic information beyond how long you have been self employed and what you expect to earn. They don't know your attitude to interest rates, other outgoings, credit history etc etc. As many have said, speak to the Abbey

UK007BullDog

the brokers could have given you percentage rates, as that is what you were really after, however your income, your property type, area, your whole situation might not fit with their criteria, so telling you there is a self cert available for x.xx% from ABC lender is totally worthless.

The rules are that before giving advise the brokers/advisers need to ask a lot of questions. Because if you fail to repay the mortgage the lender will ask questions and start with the broker. The broker cannot afford to lose their license so will do what they need to do to be compliant. I dont think any broker is willing to jeopardise their licence and reputation for a "dodgy" mortgage application (not saying that yours would be dodgy, just speaking in general terms).

I think you should speak to a whole of market broker as was suggested above to get the best advice.

And self cert mortgages cost more than regular mortgages anyway as the lender classes those as a higher risk.

jamesd

PBA wrote:

Staying with your present lender with a slightly worse rate but lower fees is often the best deal, but of course a broker won't suggest this option as there's no commission in it for them.

The first suggestion by a broker said "Have you checked what your existing lender will offer you? It could save time and hassle remortgaging if it is competitive enough".

AndrewSmith

I think sometimes that people should remember the brokers who post on these forums do it in their spare time and without any motive of personal gain.

With that in mind why on earth would they give the wrong advice or show a lack of interest for the incorrect reason of commissions? We get paid nothing for offering help on here and do so without obligation or remuneration in any way.

Brokers use this site as a place to offer genuine help to posters who, for whatever reason, want guidance and suggestions on a generic basis without feeling beholden or obligated to that person in any way. What you will not get from these forums is specific advice or recommendations as it will be in breach of FSA regulations.

Why someone would ask for assistance then attack the qualified professionals who offer suggestions and give their time for free is beyond me. It shows a complete lack of respect for the time given up by the broker to answer the question being asked.

The OP is completely wrong about the commission issue on self certify mortgages. This is, however, irellivent in such an enviroment as this as we are paid no commission at all for posting help on these forums. A ridiculous accusation to lodge at qualified professional individuals who do this for nothing.

A broker will only receive commission once the new mortgage has legally completed, ie you have become a new customer of the new lender and begin paying your new mortgage.

To be honest though I would suggest that you would not be accepted as a client by the majority of brokers as you do come across as the sort of person who would look for reasons to complain as opposed to working with the broker.


Self certify mortgages are in place to assist those who cannot prove their income. However, as Homerj correctly states, to get the best deals available you will need to show evidence of trading and have been in business for 12 months+

DO not confuse evidence of trading with evidence of earning. Also a large number of lenders on self certify will verify your employment status via your NI number with the inland revenue to confirm you are self employed.

ALso although self certify mortgages do not necessarily require evidence of income the lender will reserve the right to conduct any verification it sees fit and can, at any stage and on any type of mortgage, ask for any clarification it wants and any references it wants. They can also reserve the right to, in fact, ask to write to your accountant for a reference or trading to ascertain how sustainable the business actually is.

They do sometimes also ask for proof of trading such as an invoice to your company, or company bank statements etc.

Lenders are becoming tighter on their criteria for self cert as it is moving more into the spotlight as the next possible mis-sale bandwagon.

Also never forget that a lender can refuse or decline an application at any stage without reason or explanation. They have no obligation to 'lend' you anything at all and can /will ask for anything by way of evidence they see fit.

herbiesjp

PBA wrote:

Looking at the link that homer_j posted, I'm surprised not to see any of the high street lenders on there. I know Abbey offers it's standard products on a self cert basis and would assume that the others do the same.

When you get your retention deal offer, remember that even though the rate might be a little bit higher than what's on the open market, there's no valuation or legal fees and probably a lower booking fee, plus you won't have a pay a deed release fee to Abbey either. Staying with your present lender with a slightly worse rate but lower fees is often the best deal, but of course a broker won't suggest this option as there's no commission in it for them.

A lot of high street lenders offer fast track as opposed to self which is not the same thing.

And with both schemes the lenders can ask for extra information or confirmation of any income suppplied at any time.

I think you will also find that staying seeing what Abbey offered was also suggested very early in the thread;)

MortgageMamma

This thread has got out of hand. You just can't help some people no matter how much you try.

wisper

Would I be right in saying that for a self cert the calculated interest would have some sort of "risk factor" included?

If this is the case then perhaps you wouldn't get a cheaper rate by moving from Abbey?

My sister is with Abbey. Her 2 year deal was up, they put her up to 6.5%. She went to see a financial advisor. He gave her a few deals.

She went away and thought about it. She's planing to move in a year's time so will be changing the mortgage (perhaps to a smaller one)

She gave Abbey a call and the said they'd be able to lower the percentage a little, so she's on something like 6.25% or something.

She was being offered around 5% from the FA but when she worked out £200 to Abbey to release the deeds, plus set up fees etc, there was no point in changing.

So perhaps seeing what Abbey could offer may not be such a bad idea.

Anyway on to your business. If you're making profit (which you must be doing if you're paying a joint income of £45k), then perhaps a letter from your accountant stating that the business is making profit (which is pretty damn good for a business from day one) would be enough?

jamesd

How is your mortgage search progressing?

bud-miser

Thanks guys. Your point about the Abbey 'deeds release' fee is well taken, wisper. At some stage during the course of my 3-year tied period with them, some bright-eyed, bushy-tailed Abbey boy made himself a teacher's favourite with his bosses by suggesting an overnight change from £95 to £225. Doubtless he's now a company high-up on the strength of this.

I've argued over the phone with them but they won't budge, pointing to the small print which allows them to do it. You can almost hear the smirk. If you, as a potential new customer, approach the Abbey, it doesn't get mentioned as part of 'redemption penalities'. I know, I've rung them up anonymously and tried.

Caveat emptor, folks. If Experian did 'fair dealing' ratings, the Abbey would decidedly NOT come up smelling of roses, this on a number of fronts in my experience.

James, it's not going too badly, thanks. I've found that 'cutting-out-the-middleman' is proving fruitful on this one.

herbiesjp

This thread might help if you are definitely looking to move from Abbey:

http://forums.moneysavingexpert.com/showthread.html?t=100358&highlight=early+repayment+charges

HTH