Self cert mortgage lenders?

Fay

Hi guys, my boyfriend is self employed and we have now sold our house and everything is ready to go on the next house...however, our mortgage lenders are now saying we can't have our new mortgage. We are with natwest and when I first arranged to change the mortgage to the new house they said no problem, but the girl who arranged it all must have got confused and put my partners gross income down as his net. We need to borrow 95k we have a 35k deposit, and they will only lend us 90k They didn't let us know that there were any problems though and our buyers are ready to go next friday...so now we are in a rush to get the money.

So the question is, do you know of other self cert lenders? We are currently waiting for the accountant to send us through a projection of this years figures to hope this might help. Natwest did this to us the last time we had a mortgage with them and left it until the week before moving to tell us we needed to get more books for them. I am pretty fed up by it, but we have already had our survey done etc through natwest so I don't know what to do Any advice would be appreciated.

WHA

There are plenty of firms offering "self cert" mortgages. If I were you, I would go to see a local IFA (independent financial adviser) who deals with mortgages - they will know what is on offer in the market and which firms will be suitable for your financial circumstances. I'm afraid, I certainly wouldn't go with any of the High Street banks.

payless

If the true income is enough to support the loan (on other lenders criteria- which in some cases can be flexible) then below 75% you might get a major player interested on a "fast track" basis without having to pay a premium .

If its not enough then (self cert or not ) its a problem as you are required to state the true income anyway.

http://www.fsa.gov.uk/consumer/07_MORTGAGES/getting_started/selfcertification.html

Fay

payless, whilst it is a self-cert mortgage because he is self-employed; we do have to prove his true income. Natwest have had 3 years books of his and his bank statements but despite charging us nearly £500 for a survey they are still saying now that we might not be able to have it.

I have spoken to the underwriter and he has told me to put a complaint in about the girl who processed it, as on my application she has got it right i.e. his net income, but she has passed his gross onto the underwriter. But I wouldn't know who to complain to anyway. I am currently waiting for the underwriter to call me back...fingers crossed

herbiesjp

Being self employed does not bind you to going on a self cert scheme - by the sounds of it, you are having to prove your income, so self cert is a side issue. I really do think you should be able to find other schemes with other lenders that will offer the full amount

Fay

You're right, we are having to prove his income. I don't think we need to go self cert either now, we had to last year as he only had 2 years full books. Our estate agents have called today and said our buyer wants to push it on now...they want to move in next friday, which is going to be virtually impossible for us due to a number of reasons, but the main one is lack of mortgage at the moment.

Natwest are still being awkward and want to see my P60 (despite the fact that I only earn 4k a year) so we can't do anything with them until tomorrow.

Can anyone recomment a lender that I could call today/tonight and get a decision from? How long would it all take to arrange, I figured it would be much quicker with natwest as we are already with them, but it doesn't seem to be at all

payless

for a quick decision it may be better to use a lender that offers mainstream rates, but on a fast-track basis ( similiar to Self cert, but not the same), as otherwise you could hit delays as the lender reviews the accounts

Fairdo_2

Possibly my ignorance, as I have never actually worked within a Bank, but I am a bit confused that the underwriter would have taken the processors verbal information, rather than taking the figures from the Application Form themselves?

I am quite suprised that, for £5,000 there cannot be a bit of lea-way on affordability.

If your Accountant is drawing up a projected figure for this year, then it may be worth you ensuring that they take a bit less business cost in the equation and biting the bullet a bit when it comes to tax next year. This is because most Accountants will try to maximise your partners business costs and you could elect to pay for a few more things personally, so that your partners assumed net profit is boosted a bit.

At this stage, although they have been a pain in the backside, they would certainly be better to get to compromise, if you take the short space of time required.

On cost, there could be a good argument for getting re-inbursed, if you end up going elsewhere.

My understanding of Traditional High Street lenders like Natwest is that they should be able to apply a certain amount of discretion under these circumstances, so I am quite suprised they are not budging.

I do take on board what payless says about affordability though. So if it does make that much difference between the £90K and £95K, then Natwest would not want to expose themselves to appearing to be a non-responsible lender.

Good luck

meanmachine_2

Wow, I'm amazed that Natwest are being stubborn over a paltry 5K. I thought banks were falling over themselves to give people money.

And if you have accounts, then you can go to any high street bank and get a standard mortgage that also offers a greater multiple of your income than Natwest. See your local mortgage broker. He'll help and shouldn't charge you up front.

Failing that, Northern Rock do Fast Track mortgages.

I wouldn't bother with self-cert. They're for people who have no proof of income whatsoever and normally pay a slightly higher interest rate as a result (although most self-certs these days are pretty competitive too).

greg_green

I recently obtained a self cert mortgage through a national fees free mortgage broker. Clear cut mortgages are hard to come by especially in the self cert market.

The are plenty on the market though but make sure you get the right broker to find the right mortgage for you, else you could end up paying higher rates than you need

Fay

Well we have finally managed to get it sorted. I have to say that I don't think I will ever arrange another mortgage with Natwest, it has been a nightmare from start to finish and their customer service is terrible.

We went to see an IFA last week but he just couldn't match the deal they were doing us (1 year limited ed, 2.8% discount bringing it down to just 3.99%). I had to call them to see if he could certify my P60 and boyfriends projection-the woman was so rude to me that at one point I said 'Actually I think I will consider moving my mortgage due to all of the problems we have had' she turned round and said 'I'll cancel your account now then shall I?' I was appauled and so was the IFA...I still haven't found where to register a complaint, does anyone know?

We finally got the go-ahead after spending an hour in a branch faxing things off etc. They said that they would take our mortgage fees last friday and our solicitor would have the offer by the middle of this week. So I call them today to check its been sent...oh no, we didn't take your arrangment fee sorry, shall we do it now? then your offer can be sent out the middle of NEXT week! To say that I am not happy is an understatement, but our buyers are pushing us to move now, so I think Natwest are still going to be the quickest.

We are both really unimpressed by them, I will never use them again myself and I would not recommend them to anyone. We are putting down a 25% deposit and the IFA couldn't belive that they were being so strict with us either.