Kensington Finance : Advice for a 22yr old FTB :)

luckyfool

Aaargh, the forum keeps eating my posts.

Was basically saying that there are legitimate uses for Self Certification mortgages. If you cannot prove all your genuine income to the satisfaction of high street lenders then that is the intended use.

If you just want to get a bigger mortgage than you can afford and Self Cert a £25k income as £50k then that is mortgage fraud and I'd steer well clear.

Your broker should be able to justify why they are recommending Kensington and a Self Certification product.

luckyfool

Your broker is either suggesting self certing the £22k all in your mother or fathers name, or self certing a joint income of more like £26k to get 90k or £28,600 to get £100k. If that income has no bearing on reality then you have problems.

Do your parents have any other income at all from any other sources? State pension, tax credits etc?


Based on the income you mention I would imagine that you should be able to get the £90k or close to it from a high street lender. Do your parents have a repayment method or plan. Would they plan on taking the mortgage on interest only, or repayment and over how many years? If interest only, how would it eventually be repaid.

These are all issues that are of concern in a situation like this.

Rafter

Would you parents not be better off with a Equity release mortgage?

The rate might be better than the Kensington ones and they can then use their pension for what it was intended - ie enjoying their retirement.

Sure, your inheritance might be less, but at least your parents can enjoy their retirement for now, and can always repay the equity release loan when something happens to one of them, or they decide to downsise properties in due course?

R.

luckyfool

Rafter wrote: »

Would you parents not be better off with a Equity release mortgage?

The rate might be better than the Kensington ones and they can then use their pension for what it was intended - ie enjoying their retirement.

Sure, your inheritance might be less, but at least your parents can enjoy their retirement for now, and can always repay the equity release loan when something happens to one of them, or they decide to downsise properties in due course?

R.

Equity release is unlikely to fly here as the maximum ltv you can normally get subject to age and health is 55%.

homer_j_3

I think that some of the lenders mentioned would do that - I know one high street lender that will goto 6 x salary for the right clients with the right credit history and clear demonstration of handling their finances well.

I would def get a 2nd opinion.

barbie_babe

I moved in 2004 i was moving a long way from home and only had a part time job in new area i was moving to BUT my husband
a bouncy castle company we were taking with us. As we were not sure how much we would be earning in our new area we had to have a Self Certification mortgage. Our broker choose Kensington. We went with what he said as the rate was good at the time.
We moved and everything was ok when rate was good then castles started slowing down and rate kept going up. so we were struggling.
To cut a long story short are mortgage has gone up nearlly 300 pounds in three years. other normal banks wouldnt put it up this much.(we have watched the rates). Therefore i would never advise anyone to go with this company. Please please carry on renting rather than use this company.

RedTomato

Sorry to bring up an unpleasant fact but what if your father passes away or your mother becomes unable to work? If they borrow to the max now, how will they manage? Have all these scenarios been thought through?

freestyler

barbie babe is it 300 pounds a year over the last 3 years ? and what kinda mortgage did u take ? the one my broker has recommended is a 3 yr interest only mortgage [fixed rate] which cud b xtended for 12 more yrs

tomstickland

but at the same time it seems almost every one fudges their income these days to get a mortgage..

It's a bad idea for a number of reasons.

freestyler

With one more year left at uni im hoping id get a decent job and after that i cud start contributing to the mortgage payments...and in the case my dad/mum pass away i really dont know whats gonna happen,im just hoping for the best..i havent got a proper repayment plan ; my dad does have a high interest savings account so maybe he could invest some of his pension into that ? this is one option..