Self Cert Mortgage 90% over £500k - any lenders

535dman

I know there are a few mortgage advisors on here so thought I'd give it a go -

Looking for a mortgage of over £500k with a 10% deposit. I need a self cert as I am a consultant and currently do not have 3 years accounts to show - what I do have is an accountant who could write what I tell him to

Spoken to 2 seperate mortgage brokers and Northern Rock would lend at 6.30% for a 5 year fix - I dont really want to be tied in for that long - any other options available?

Cheers

phlash

Boys' network!

Don't get 'crunched' in your travels will ya.

535dman

Answers in plain english please - thanks :T

MortgageMamma

There are a couple of mortgage lenders who could potentially do this, however I'm not going to list them on here as I don't know the first thing about you or whether these lenders are suitable.

Best thing you can do is seek out a whole of market mortgage broker to assess your circumstances. if you don't want the broker to control the entire transaction why not just offer to pay a consultation fee for the information you require?

HelpWhereIcan

phlash wrote: »

Boys' network!

Don't get 'crunched' in your travels will ya.

535dman wrote: »

Answers in plain english please - thanks :T

I think phlash (although I could be wrong) is a housing market bear who expects the economic outlook to be very poor and is warning you against borrowing heavily in the face of a prospective global credit crunch.

Whether s/he is correct remains to be seen, but they appear to be of the opinion that Mortgage Brokers, lenders, accountants, the City, Kirstie Allsop and the global corporations are all hiding the truth from us and preying upon unsuspecting bulls who are too stupid to realise that the housing price crash predicted since 2003 is upon us!!

To get back to the actual question the OP asked - there are lenders who will do a 90% self cert but not a huge amount that will do self cert when you are looking to borrow £500k plus.

Northern Rock is not one of them!

It would appear that the Mortgage Advisers you have spoken too have clicked that the lender would be able to ask your accountant for confirmation of your income figures for the last couple of years (although getting them to lie about it is not a good idea) and a projection for the current year. Being able to use an accountant to confirm income means that you do not have to self cert. :j

You would not be best served by self cert in most cases (rates and fees can be too high).

You do not tell us what type of consultant you are - IT, construction (CIS) etc? Depending on your occupation and contract you will probably find that there are lenders who will lend on sight of your current contract and evidence of how long you have been contracting.

You have not told us your income either - another thing that is a big factor.

All in all, you may not need to self cert and I would be suspicious of anyone who tells you automatically that you do. There are lender who do not offer self cert who have specific policy for contractors that can be very generous and not neccesarily dependant upon 3 year's accounts.

Post a bit more about your circumstances and someone will be able to offer some pointers.

Hope this helps

dwsjarcmcd

I would add to HelpWhereIcan's post by saying that the availability and pricing of both self cert and sub prime deals is changing rapidly with the present market conditions.

Lenders are withdrawing or repricing in these markets almost daily!

MortgageMamma

dwsjarcmcd wrote: »

I would add to HelpWhereIcan's post by saying that the availability and pricing of both self cert and sub prime deals is changing rapidly with the present market conditions.

Lenders are withdrawing or repricing in these markets almost daily!

Yes and its a bloody nuisance I don;t think I've ever done such mileage.

535dman

Thanks for the replies!

Some more info -

I work in Pharmaceuticals.
I have been contracting since 2005 (10 months using a managed umbrella and my own Ltd since April 2006).
Hourly Rate is over £60 per hour.
I work 37.5 hours per week and have been on the same contract since August 2005.
I have no adverse credit at all
I have sold and am currently i rental accomodation (apparantly my mortgage advisor told me this effects my credit rating (makes it worse) :mad:

Now I was told Northern Rock would lend me up to a purchase price of £700k but they want to tie me in for 5years at 6.39% which is quite a high rate- I am looking for a 2 or 3 year fixed rate with an interest rate of around 6ish%.

Hope this helps - PS as above I only have a 10% deposit.

As for the house price crash - each to their own, but I cant see this happening TBH.

dwight-van-man

Cannot comment on any other lender but Northern Rock will not do self cert or fast track to 90% ltv. They will however consider lending because of your track record in your industry, but you'll need to come up with paperwork. Even so, you're being pushed down the five year fixed route because whatever income your broker has declared (I'm assuming they've run a dip) is short for standard multipliers. If you got a high or medium score, you could get your broker to appeal to try to get a two or three year deal. You'll still need to produce accounts etc though.

HelpWhereIcan

What sort of purchase price and loan amount are you looking at?

There will be lenders who may be alternatives to Northern Rock - C&G, Scottish Widows and the HBoS group lenders come to mind as ones that should be ok with one year's accounts plus a projection. I would hope that your brokers have considered these for you.

Based on the figures you have given, I would guess that the Northern Rock have passed you with a high score, giving 5.4 x income on a 5 year fixed or longer = 631,800 (90% of £702k) - or there abouts

The top end for many lenders (assuming that 117k can be used as your income) will be approx 550 - 585, so the purchase price and 'only' 10% deposit may explain the tendancy to reccomend Northern Rock.

Have either of the Mortgage Brokers you have spoken with actually carried out a decision in principle with Northern Rock? if not, their figures will be no more than an indication of the likely maximum.

If you are able to get an extra 5% deposit you may find more lenders coming into play, but the maximum loan amounts are not likely to change hugely.

Hope this helps

535dman

The other 5% is the problem as I don't have it unless I go down in purchase price by about £70K..

Anyone dealt with Abbey self cert mortgages? There seems to be nothing on their website about self cert mortgages...?