Self Certified Mortgage.

chriz1000

I have calculated that the most I could easily afford for a mortgage would be £2400 a month, which would leave around £1200 a month to pay bills etc…
Could someone do me a big favour and calculate what the most I could borrow would be and recommend some brokers for Self certified borrowing?

hokkers999

chriz1000 wrote: »

I have calculated that the most I could easily afford for a mortgage would be £2400 a month, which would leave around £1200 a month to pay bills etc…
Could someone do me a big favour and calculate what the most I could borrow would be and recommend some brokers for Self certified borrowing?

Pity then that it's not what you think you can afford to pay but what the lender will take into account! Do you really think that paying 2/3 of your income to cover a mortgage is a sound idea?

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chriz1000

I just want to know the maximum I can afford to borrow really. I see where you’re coming from and see why most if not all lenders wouldn’t want to lend so much, however I thought some lenders based lending on what you can afford to repay?

doitmyself

chriz1000 wrote: »

I just want to know the maximum I can afford to borrow really. I see where you’re coming from and see why most if not all lenders wouldn’t want to lend so much, however I thought some lenders based lending on what you can afford to repay?

You sound like a reasonable person asking a reasonable question. I used a fantastic broker but I probably live a long way away from you, and can't actually remember !!!!!! he was anyway. Sorry. The sensible Sunday people will be along soon. Good luck.
Oh, it's Saturday isn't it... bo**ox

jamesd

Assuming that you have a 10% deposit, 51000 a year income before tax and NI and no debt it appears that HSBC may lend you 200000-225000. Income multiples of 4.75% are available to some non-graduates at 90% LTV and in some parts of the country. Other lenders may be willing to lend more.

However, that's based on a normal mortgage, not self-certified. You're likely to need a higher deposit to borrow that much on a self-certified mortgage.

This does not mean that you can afford to borrow this much, just that a lender may be willing to lend it.

herbiesjp

What are your actual incomes?

Can you verify all your income via paylsiples accounts etc?

Some lenders have got very flexible affordability calculators so YOu will not go self cert. You would only look at self cert if you cannot prove your income, and then you would need to meet other criteria (varies from lender to lender) to make sure you would be eligible.

AndrewSmith

chriz1000 wrote: »

I just want to know the maximum I can afford to borrow really. I see where you’re coming from and see why most if not all lenders wouldn’t want to lend so much, however I thought some lenders based lending on what you can afford to repay?

They do, but only when you can prove your income.
Even with self certify it only means that they do not ask for payslips/accounts.

Most lenders will still want proof of trading, bank statements to show that the level of income you are self certifying is reasonable and will want you to have been trading for, usually, more than 6-12 months.

Self cert does not change the amount of income you have nor does it change the amount a lender will offer based on that income. It merely means that you have no accounts or payslips to verify income by the normal methods.

Whatever type of mortgage you take the lender reserves the right to, and quite often does, ask for an accountants reference, tax return, bank statements etc to back up the stated income.

shameless-about-money

In the USA they only allowed someone to pay one quarter of their monthly income into a mortgage, whether a couple or an individual.

Not sure if this has changed in the last two years but it seems a sensible way of budgeting.

There seem to be so many people paying half or more of their income into a mortgage in the UK.

jamesd

shameless-about-money, that sounds like a very low limit, possibly based on assumptions about the lifestyle of the applicants. Paying 50% of my income on a mortgage would cause me some inconvenience: I'd only be saving 25% of my income...

shameless-about-money

jamesd wrote: »

shameless-about-money, that sounds like a very low limit, possibly based on assumptions about the lifestyle of the applicants. Paying 50% of my income on a mortgage would cause me some inconvenience: I'd only be saving 25% of my income...

No, this was across the board - Americans were not allowed to pay more than one-quarter of their monthly household income into a mortgage!!

As I said, I don't know what the limits are currently - but this was certainly on every mortgage advert in the US newspapers three years ago - the same as ours say "your home may be repossessed if you do not keep up payments on your mortgage".

chriz1000

Thanks. The money is paid from my company in the form of monthly dividends, wages and directors loan repayments.
I also have debts which I initiated on behalf of my company which stand at about £45000, but a further £2250 a month pays 5% or more of these debts a month. This other money is directly paid into another current account of mine (not a business account) and comes out by direct debt, it all happens in the background, and I don’t count this as my money as when the loans are paid off I wont receive this extra income.
I have bank statements going back many months showing the sustained level of income.
My girlfriend also brings £1400 a month home, however I would only like to base the mortgage on my earnings, as I don’t think her wage would help much?