Self Cert criteria for Mortgages ?

fuzioneer

I already have a self cert mortgage with Mortgage express of £125k which i took out just over a year ago.

Business has improved and have a new addition to the family so we were thinking of upsizing and moving to a better location.

What i want to know is what are the criteria for self certification type mortgages, i.e.

I have been in business now since October 2004 but have only had one set of accounts so far, next set not due until July next year
My Wife and i are directors/Secretary of the Ltd company.

So firstly would we still be going down the self certified route after being in business for so long ?
secondly what are the multipliers used to calculate how much you can borrow when self employed as we are, i.e. is it 2.5 X income / tunrover etc etc ?

herbiesjp

Some lender will be happy with 1 years worth of account splus an accountants projection for the next year - self cert not needed, and better rates would apply

Multipliers will depend on the figures you are looking at, incomes, outgoings , children etc, - however you can easily get 4 times income.

HTH

fuzioneer

the problem is I am tied in to Mortgage Express until 30/09/08 with a 5% of outstanding amount early repayment fee

Does anyone know what mortgage express offer as a multiple and whether 1 year of accounts would suffice as a means of not being self cert ?

Conrad

Mortgage Express offer a wide range of income multiples dependand upon your income band. For example an income between £30 - 40000 will qualify for 4 x income (single).

I think it is likely you will have to 'port' your existing deal which means the new deal (for the top - up portion) will probably also have to be from the Self Cert stable but based on todays rate offerings.

Thier self - cert rates are often more competetive than full status lenders anyway, so dont be put off. I saw they had rates from 4.99% a few days back.

Now remember with self - cert to make sure the new application tallies with the old, a point often missed. So for example use the same business start up date.

Good luck