Self cert mortgage!!!!!

united_road_68

This goes out to the more financially apt people here.

I am currently apply for a self cert mortgage.
Im buying a house for £125,000 on single ownership. my income is £18,000. I am sub letting 3 room to friends to help the repayments. Brings in £660 a month.

Had to take the self cert option as was the only way i was ever going to get on the ladder, have friends willing to rents rooms only helps with this.

I have got the 10% deposit required to kick on with this. the broker has come back with teh "best deal" she can find.

Either 5.95% fixed for 3 years or 5.7% fixed for 2 years. For obvious reasons im leaning towards the 2 year deal.

Is anyone aware of any better deals out there? or who these lenders may well be? She is charging a fee for her services so if avoidables id like to bypass her.
cheers

Conrad

The lender is Kensington Mortgages.

I deal with them often, they are ok in terms of service.
There are lower rates, but some have very high fees.
Dont thinking going the self - cert route is easy. There are many pitfalls.

silvercar

Don't Abbey now lend 7 x salary?

Why self-cert, because your income isn't documented or because it needs artificially inflating? If the later, be careful, to lie is fraud!

united_road_68

What sort of pit falls can i expect?

_Andy_

Out of interest, what did you self-cert your income at?

united_road_68

32k........

_Andy_

..yet your income is only £25920? (660x12 = £7920) + £18000?

Cara79

united_road_68 wrote:

32k........

This is fraud is it not?! If your broker gets the deal for you on this basis, they too will be committing fraud!

I'm at a loss as to what else to say!!!!

_Andy_

Yes it is fraud - I assume TML just said to him "are you willing to self-certify your income at 32k" and you said yes..

housebuyer_abc

united_road_68 wrote:

32k........

I suggest you go back to your broker and point out that your salary could never be 32K if you sign a mortgage offer at this then you are seriously stuffed if you ever default.

What happens in two years time (or whenever) when your fix rate runs out, how will you afford the payments if you can't re-mortgage due to the fact your income is too low.

What will you do if one, two or all three of your lodgers move out due to partnering with someone who has a flat or getting a job elsewhere.

Buying a property is not the be-all-and-end-all, owning a property may be, but you don't really own it until you pay the bank all the money you own them, until them it is simply a place to sleep and a significant debt.