self cert question

keyboard

Hello
I am planning on buying a house and I have been advised by a mortgage advisor that if I self cert then I may be able to get better interest rates as my deposit is only 10%. The term I am thinking of initially is fixed for 2 years. However I am concerned that if after 2 years my situation changes (i.e. have a child so work part time instead of full time), would it be difficult for me to remortgage?

MortgageMamma

I think you have got the wrong end of the stick, self certing will mean you pay a slightly higher rate than you would if you went full status, i.e. provided proof of income. I'd go back to your broker and ask him why you need to self cert and explain his research to you. it might be genuine but I am suspicious of the brokers motives as this is not usually the norm.

Beware that if you self cert and overstate your income you may struggle to pay the mortgage now, and quite rightly if you remortgage in future and lenders criteria has changed then it could present a problem

herbiesjp

Tell you what, post the details and we'll tell you very quickly if self cert is the best option for you:

Property price -
Mortgage needed -
Your gross yearly salary -


Are you employed or self employed?

keyboard

porperty price £112000

mortgage required 102,000

salary gross £21,000 (employed teacher)

herbiesjp

Well then a self cert mortgage is not suitable.

However you should be able to find lenders willing to agree that for you on a full status basis (assuming a good credit history and no other outstanding debts)

HTH

MortgageMamma

do you have more than one job? i.e. do you do private teaching in addition to main occupation? Still cant understand why your broker has recommended self certification

keyboard

well we dont know why he has suggested self cert either, but perhaps we should find another broker.

herbiesjp

keyboard wrote: »

well we dont know why he has suggested self cert either, but perhaps we should find another broker.

I think that sounds like a good idea

alexandlee

i agree with herbiesjp! 4.85 x salary without taking into account any cards/hp etc. Some lenders will do that multiple for you, and others will look at an affordability basis.

Lenders will lend based on your circumstance at point of application. They won't know if you're planning to work part time on 2 years. Its good that you're thinking of all the consequneces before you commit to a mortgage.

MortgageMamma

Yep. on the face of it it looks like your brokers a bit of a jack. Good luck, and please don't tar us all with the same brush

MM x