best self cert mortgage at the moment ?

michael748

hi,
i'm a regular lurker on this board....even if its my first time post.

in a nutshell...anyone recently taken a self cert mortgage that seems reasonable rates ?

seems self cert might be my only option ?

in summary:
want to borrow 291k for a house 485k (i.e. LTV 60%)

i have been an employed contractor for 7 years...but have rececently just switched composite company 5 months ago. i am on a rolling contract too.

my gross income is 80k ( but split small salary and balance in dividends)

wife is employed PAYE 30k but currently on maternity leave.

the property we are selling is owned outright by me...no outstanding mortgage

we have 30k savings between us too.



Abbey blew me out as they saw me as self employed...so the asked for 3 years accounts on the current contract, which i cannot provide as I have only been with this new composite 5 months


after Abbey blew me out i am currently having a broker look at this for me for a normal mortgage...but i dont hold much hope because of my recent change in composite

cheers
michael748

payless

It might be suggested that the self cert market comes in 2 different  ways

1. Traditional self cert  - you pay a premium for this

2. Mainstream lenders who usually won't ask for income proof ( but might), same rates, but need a big deposit, some will only do it if you have a current mtg, other less restrictive

They will usually expect a longer time "self employed" but again some are less restrictive than others , and in some cases you may get individual assessment - someone looking at case in a commonsense manner
( but this is rare these days)

michael748

thanks for the quick reply

yup...i see it that way... but i thought that Abbey might have accepted a 40% deposit ...even 50% if they wanted it !...... 240k on the table as a deposit.... but it wasn't good enough for them...... personally , i can't see where their risk is as long as the valuation is ok...but didnt get that far.

my broker if progressing an Intelligent Finance deal....which isn't bad to be honest....but i stuill think i'm going to get unstuck with all this "how long have you been in your current contract ?" business....even if i've been working in the industry for 13 years and of those contract for 7 without a day out of work.

seems the big boy lenders only want permie staff to lend money to....even if they have no more security than me, and can still resign the day after the funds are approved.

just thinking i might have to cut my losses, take a higher rate on the chin and go self cert

payless

IF ... Erm , good rates at moment/ perhaps worth a try BUT would not have been my first choice for a case like this.

michael748

this is my problem....it seems that i can't choose the best rates.

i really wanted a discount tracker.... which is what the abbey product was at -0.34% BOE 2yr

the problem is becasue of my employment status.

who might you have considered above IF ?....given my circumstances

payless

Not really allowed to go in that deep on these boards and without a fuller picture, but certainly on the face of it I would be talking to 2/3 of the big lenders ( inc perhaps Abbey themselves ) to try and get it individually assessed rather than "tick box" sometimes works sometims don't

Then there's one lender that you might just fit into their standard criteria

Did you mean the base less .31% tracker -
of course it would be hard to beat that, but at least we aren't talking true self cert premium.

michael748

i did go to abbey direct...... they blew me out...and said that they would even consider a reapplication on a self cert basis...... so thats it...bridge burnt...move onto the next one

..so i've now decided to go via a broker to avoid the "local/head office box tickers"...and i'm hoping that the broker will have some direct link to the underwriter so we can cut out all the !!!!!! and get a straight yes/no.


yup...it was discounted tracker....

thats what i would ideally like...with a 2 or 3 year tie in

given the circumstances it seems that i can't be too fussy.

ihave an agreed sale on my property...and an agreed sale on the place i want to buy....

meantime the solicitors are proceeding so i want something sorted in the next few weeks

payless

Best of luck

If things get sticky again let me know if I can assist