Self Certified Mortgage.

chriz1000

Sorry, one other question I have, could I tell the broker I have found a house I’m interested in and just pull one off of rightmove.co.uk?
So initial proceedings could start and they can test the water to see if I will be given a mortgage? I don’t like the prospect of having to look around a house deciding I want it only to be told I can’t get the funds and having the embarrassment of telling all parties involved that it isn’t happening.

If I did this and pulled out after the mortgage was provisionally accepted, would I have to start all over again or when I find a house I actually want would they simply see that the mortgage is ready to go, as long as the criteria hadn’t changed much?

AndrewSmith

chriz1000 wrote: »

Sorry, one other question I have, could I tell the broker I have found a house I’m interested in and just pull one off of rightmove.co.uk?
So initial proceedings could start and they can test the water to see if I will be given a mortgage? I don’t like the prospect of having to look around a house deciding I want it only to be told I can’t get the funds and having the embarrassment of telling all parties involved that it isn’t happening.

If I did this and pulled out after the mortgage was provisionally accepted, would I have to start all over again or when I find a house I actually want would they simply see that the mortgage is ready to go, as long as the criteria hadn’t changed much?

There is already a system in place used widely by lenders, brokers etc called agreement in principle or AIP for exactly this purpose.

Be completely honest and up front with your broker, there is no need to give bogus property details etc as his first call is likely to be to the selling agent to verify the property details and introduce himself to the agent as your broker.

You would look a bit silly if the agent had no idea who you were.

Use the systems and processes already in place to their fullest and you will be fine I am sure.

hokkers999

AndrewSmith wrote: »

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.

Unless of course you use one of the several TRUE self-certs who never ask any questions...but I would still question the wisdom of committing 2/3 of your income to a mortgage.


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I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

jamesd

shameless-about-money, it's circumvented by combining a straight mortgage with a home equity loan (at a higher interest rate). That allows the base mortgage to be resold, as is normal in the US system.

AndrewSmith

hokkers999 wrote: »

Unless of course you use one of the several TRUE self-certs who never ask any questions...but I would still question the wisdom of committing 2/3 of your income to a mortgage.


****
I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

True self cert or not it does not change the level of income that the client has. Unless that is you are advocating and condoning falsifying information on the application form.

But even these reserve the right to still ask for an accountants certificate etc and will usually always verify the applicants employment status via their National Insurance number and most will still want to see bank statements showing a sustainable level of income.

Lenders share information as well as following trends of application types from certain brokerages. If they smell a rat things could get nasty for the broker and client guilty of putting inflated income figures.

Only a complete fool would falsely declare their income and risk the consequence of prosecution. Have seen a client and broker go to prison for simply that first hand (no it was not me).