Best self cert mortgage for self employed

Sparks33

opinions4u wrote: »

The point is, a lender advancing a large mortgage based on an income of £4,500 runs the risk of being closed down by the regulator in this day and age.

This is true, and exactly why self certs will be missed by many...

Thrugelmir

Sparks33 wrote: »

get their hands on should I default on my mortgage payments. I don't see this as 'high risk'!

If you don't have the income to support a mortgage then from a lenders point of view statistically you are highly likely to default. Banks no longer have any interest in taking excessive risk. There's plenty of good risks to lend to.

Sparks33

ExpertFinancial wrote: »

You can always raise the £120k against your current property on a Buy To Let mortgage. There are lenders who do not have a minimum income requirement as long as the expected rental return is sufficient to cover the mortgage.

From your point of view, you just have to be careful and make sure that you could also maintain the mortgage yourself in any rental void periods.

At last, a useful and encouraging reply! Thanks!
All I want is a mortgage that will be covered by the rental income, (£750 monthly) and would not wish to borrow anything which I decide is not affordable. Lenders tar us all with the same 'financial brush' but we all have different lifestyles and expectations. I can quite easily live on next to nothing if I have to, I grow a lot of my own food, service my own car, maintain my own properties etc... but have the capability to earn reasonable money if and when I need to.

So, I assumed that I couldn't get a BTL mortgage on my existing property because I'm not actually buying it, I already own it! ?

Sparks33

ExpertFinancial wrote: »

Yes you can remortgage this onto a BTL mortgage on the basis that you WILL be letting it. It's also know as a "let to buy scenario"

As long as you leave at least 25% equity in the property - which sounds like no problem from the figures you mentioned then it's actually quite a simple process.

I've done a little research and demand is quite high for rental property in my area so I don't anticipate too many problems getting tenants.
Any idea of the max I can borrow on a £750 monthly rental? I realise that BTL rates are generally much higher than residential but struggling to find any up to date rates... and which lenders would you recommend who may entertain my situation?

Sparks33

ExpertFinancial wrote: »

Based on £750 rent i think it would certainly be possible to get well beyond the £120,000 figure you spoke of. If the property is worth £200,000 then raising a mortgage of £150,000 (75%) should be feasible as long as you meet the usual credit scoring etc.

Yes, the rates and fees are generally higher with a BTL mortgage, but when you also factor in the tax condition of the morgage (you can offset the payments vs the rent on your tax return for example) the gap as not a large as it first seems.

Ok, I will look further into this. Once again, thanks for your constructive input, a refreshing change from the 'dream on' comments I was receiving

TedButler

opinions4u wrote: »

The point is, a lender advancing a large mortgage based on an income of £4,500 runs the risk of being closed down by the regulator in this day and age.

This was being said years ago but the bubble keeps getting bigger. When these things really start to happen prices will fall. But for now credit is still quite easy to get.

handytips

Ted
You have no chance of getting the mortgage my friend. If you can find a bank/broker to lie on your behalf then both parties will have one foot in and one foot out of the old KlinK.
Why should the Self Employed (i am) pay less tax than the employed ? and still expect to get same treatment.