Post-2007 self-cert mortgage?

KiwiCoop

I have a 2 year Alliance & Leicester tracker expiring very soon and despite a flawless repayment and credit record and plenty of equity in the house Santander are taking the urine by quoting a best rate of base +4.49% from what it was (base +2.39%) - no valuation, no assessment of LTV, no income questions, that's just all they'll give us regardless of circumstances (suspect they're getting rid of old A&L customers off their books?).

My problem with shopping elsewhere is being self-employed/freelance without 2-3 years accounts, it's a general blanket "no". Has anyone seen evidence of a self-cert mortgage recently?

People are quick to blame greed etc for others credit issues but the banks are definitely suiting themselves and exacerbating the problem.

leftieM

You should post on the mortgages and endowments board and see a mortgage advisor to get the best advice, but it sounds like you are not the kind of person that banks want to attract (because you are self employed without proof of steady income) so they will not offer you good rates.
My sympathies though. 4.49% above base is massive. Can you not just go onto the SVR? Is that any better?

36square

I am self-employed and also have an interest only mortgage with Santander. They were very keen to offer me a new deal last year, even allowing me to switch before the expiry date without penalty. The rate was lower than for the previous fix although if I'd waited I would have got an even lower rate. Have you considered switching to a fixed rate? The widened margin over base rate reflects the bank's cost of funding which is well above base rate and uncertain, whereas the fixed rate is determined by the swap rate, which is about 1.25% for two years.

saverbuyer

4.99% really isn't a bad deal at all. Before the "credit crunch" 7% or greater SVR were common place. Unfortunately you are a greater risk (by nature of being self-employed) and have to pay the price for this.

Self cert (also known as liar loans) are gone. It was these types of products that are a large part of the cause of our current situation.

You don't mention if you are interest only or not, if you are your problems could be much worse.