Self Cert Mortgages

sjs31

For the past 5 years ive had a 'self cert' mortgage, which has been great.
Im self employed and cannot always prove my income;)

I am wanting to sell my property and buy a smaller house and use some equity to purchase a 'buy to let' for future earnings but im now worried if I will be able to get a mortgage.

Does anybody know of an alternative?

Thanks

ninky_2

do you actually have an income that is declared to inland revenue? if so you can use your last 3 years of tax returns to get a standard mortgage. it may be lower than your 'actual' income in terms of the amount of net profit shown but so long as you don't need to borrow more than that for the residential mortgage it's fine.

afaik btl mortgages aren't based on your income anyway they are based on rental yield, so as long as your credit rating is okay and you have an adequate deposit that side should be okay.

sjs31

Hi and thanks for replying

I pay myself the minimum amount each week to cover my stamp(ni) contributions for pension so that only amounts to about 16k for 3 years

I would want a mortgage of around 45k which would be split between a property id buy to live in, and the 25% deposit for BTL mortgage.

I have decent size equity in my exising home which would be put towards paying of my current mortgage.

If that makes sense

herbiesjp

No self cert mortgage available.

If getting a BTL - it will indeed be based on the expected rentla income, but most (not all) lenders have a minimum income requirement and will want proof of that income.

On a residential basis - the lenders will look at your last 3 years accounts/SA302s and base their lending on the figures disclosed to HMRC. Being a sole trader or limited company will dictate which figures a lender will be looking at.

ninky_2

sjs31 wrote: »

Hi and thanks for replying

I pay myself the minimum amount each week to cover my stamp(ni) contributions for pension so that only amounts to about 16k for 3 years

I would want a mortgage of around 45k which would be split between a property id buy to live in, and the 25% deposit for BTL mortgage.

I have decent size equity in my exising home which would be put towards paying of my current mortgage.

If that makes sense

but you are generally allowed to borrow 3 times income (i think some places may still do more) - which would give you a mortgage of 48k on a 16k salary. enough for what you want to do.