what is a self cert mortgage?

puddy

sorry if this in the wrong bit,, but i became self employed in january of this year and filed a tax return after april so have that as 'proof' if you like of my earnings

it will be the same process as this next year but now i keep a list of income and outgoings (just a list of what money i have been paid for what work and the accompanied expenses which are always the same, just petrol)

we are tied into a fixed rate for the next million years so are probably not looking to remortgage but i got to thinking the other day that i would now be refused an mortgage because of my status? is this true? would i have what is called a self cert mortgage?

misskool

Hi,

I'm moving this thread to the mortgages board where you will be able to get specialist advice

herbiesjp

Self certs no longer exist.

It would be based on the income declared on your returns/accounts.

puddy

so what was it anyway, was it a mortgage based on self employed income?

if so, how would i ever get a mortgage again?

Thrugelmir

Your only business expense is petrol?

Are you truly self employed?

herbiesjp

It was a mortgage with no, or little, income verification.

Which was a recipe for disaster, as it was open to abuse.

You will now get a mortgage based on your verifiable income. The more years worth of accounts/returns you have, the easier it will be.

GMS

puddy wrote: »

so what was it anyway, was it a mortgage based on self employed income?

if so, how would i ever get a mortgage again?

Self cert was a stated income requiring no verification.

You will be able to get a mortgage again as long as you can prove your income by way of tax returns or accountants reference.

Some lenders will want 1 years worth, some will want 3 years worth.

All would be subject to meeting all criteria at the time as well as income

puddy

Thrugelmir wrote: »

Your only business expense is petrol?

Are you truly self employed?

and the using home as office allowance, £3 per week. i carry out assessments on people, the phone calls as well actually

koexelek

puddy wrote: »

so what was it anyway, was it a mortgage based on self employed income?

Self employed people could count their " cash in hand " money;), as part of their income for mortgage purposes, but not pay tax on it:eek:

That's not the official answer,and all lenders would deny that was ever the case, but that is effectively what it was.
That's what lenders told brokers, off the record

Thrugelmir

puddy wrote: »

and the using home as office allowance, £3 per week. i carry out assessments on people, the phone calls as well actually

Then you should be claiming a mileage allowance for using your car rather than just the petrol.

jimjames

Thrugelmir wrote: »

Then you should be claiming a mileage allowance for using your car rather than just the petrol.

And potentially various other costs as well - computer, stamps, paper etc, there must be some additional costs other than petrol to prepare a report.