Short term self-cert mortgage?

Pennywise

Any ideas or recommendations for someone wanting a short term or bridging mortgage, 60% equity with 40% deposit, for say 6 months, but self employed with no accountant to certify the accounts, so self-cert needed.

somethingcorporate

Self-cert went out with the dinosaurs I am afraid.

kingstreet

For that loan to value, you should be able to find a lender prepared to accept a couple of years tax assessments (SA302s) in lieu of accounts.

Conrad

I know lenders who wont need any income certification but thier rates are understandably very high. Could well be one for a bridging house. A good broker should be able to assist. With bridging (if you go that route), the firm may need an exit route to be demonstrated.
Other option is B2L - some now have NO early repayment charges, indeed one is available at 60% ltv with a pay rate of 3.99%.

handytips

I am a mortgage broker, for someone to come on a forum such as this and ask about Self Cert seems totally preposterous to me. Its not so much the bridging loan as some will do it on a self cert basis on a max term of 6 months, the problem is, what is your exit strategy ? How do you propose to get a mortgage at the end of it. Any broker even entertaining to take your case on would have to be half mad or just plain daft.

Conrad

handytips wrote: »

Any broker even entertaining to take your case on would have to be half mad or just plain daft.

Really? Plenty of bridging going on out there, and the vast majority ends well.

For example just had wealthy clients complete on a home with bridging. Now arranging a sensible mortgage for them with Woolwich.

Most rich business owners I have met, have little official income - one reason why they ended up rich! Do you think these people sit about renting?

herbiesjp

You must declare your income to HMRC in some shape or form i.e. via self assessment.

So you can use these figures to get a mortgage.

Are you a sole trader or Ltd company - each set up will mean a lender looking at different figures.

handytips

Conrad wrote: »

Really? Plenty of bridging going on out there, and the vast majority ends well.

For example just had wealthy clients complete on a home with bridging. Now arranging a sensible mortgage for them with Woolwich.

Most rich business owners I have met, have little official income - one reason why they ended up rich! Do you think these people sit about renting?

So what are you saying Conrad ?
i want questioning the bridging so much, i was questioning the mortgage after the bridge, if someone has said they need to self cert that would suggest that they cannort proove their income.
Are there brokers out there willing to put a clients income on a mortgage application when the clients cannot proove it ?
I hope not

kingstreet

No, handytips.

Some brokers appear to be doing unregulated BTL mortgages and using the rental income v mortgage interest method as a way of circumventing the income evidence and affordability rules of a regulated residential product.

Recent posts on here confirm that it's being offered as a solution to applicants who can't prove income, or who have low incomes and fail on affordability.

GMS

The majority of BTL's now require a minimum income. Attempting to get round affordability rules is one thing which has been condoned on this forum constantly, together with other white lies which equal fraud.

Frankly any broker prepared to put a client into a BTL mortgage for a residential property should be banned. A breach of mortgage terms on day 1 which has been fully applauded by the broker is a disgrace. 'Advice' like that gives us all a bad name

kingstreet

GMS wrote: »

The majority of BTL's now require a minimum income. Attempting to get round affordability rules is one thing which has been condoned on this forum constantly, together with other white lies which equal fraud.

Frankly any broker prepared to put a client into a BTL mortgage for a residential property should be banned. A breach of mortgage terms on day 1 which has been fully applauded by the broker is a disgrace. 'Advice' like that gives us all a bad name

I haven't seen anyone suggesting that directly on here, GMS. I've seen posts from borrowers saying it's been suggested to them as a solution. You kept any evidence?

It appears to be the escape route for the self-cert business which now has no home and any broker prepared to jeopardise their career for such business is a fool.