getting on BTL ladder now self cert is not available?

AskMeAnother

well, this depends on the level of income. There are deals available with less than 25%, but in general I think you should use that as a sensible rule of thumb.

JimmyTheWig

I've a feeling that you have misunderstood the term "self-cert".

Basically, "self-cert" was where people who were earning, say, £20k a year wanted a house out of their reach and so told the mortgage company they were earning £40k a year. With rising house prices (and so little chance of negative equity if the mortgage company needed to sell the house) the mortgage companies were happy to accept this figure.
It did help some legitimate people. For example someone who was self employed and earning £40k a year but had only recently been self employed could use this method as they didn't have three years' of accounts.

That option is no longer available.

But as long as you can prove your income then there is no reason why that income can't be taken into account.

Thrugelmir

Sarahsaver wrote: »

What i meant by ladder is that most people seem to have more than one btl property after a while

In a rapidly rising property market people released equity and borrowed more to acquire more properties.

Few considered their exit route though. How the debt was ever going to be repaid though.

Sarahsaver

Just pondering my options as i have to provide for the childrens' future somehow in terms of university etc. I didn't misunderstand self cert but maybe it had been presented to me differently, that is someone like me with an income but not in employment yes of course i can prove it and it is legitimate! I think i will save for a while more and see what happens with the markets.

Thrugelmir

Sarahsaver wrote: »

Just pondering my options as i have to provide for the childrens' future somehow in terms of university etc.

Then you need to consider whether you are willing to take the risk of losing money.

Long term fixed rate ISA's offer a secure home for capital with a good yield.

JimmyTheWig

Doesn't sound like you would need self-cert, Sarah.

Whether BTL is for you is another question, however.

handytips

Done any mystery shopping for the FSA lately Sarah ?

AskMeAnother

no point, BTL is not regulated

handytips

Still ! would you go near this scenario ?

AskMeAnother

I dare say the OP might have been clearer in a face to face meeting, and certainly more info obtained. It seems to me they just thought they would struggle getting a BTL mortgage without proving income. Obviously this is not the case.

So If I was comfortable that the property was indeed to be let, I'd have no problem with this one.