Nervous FTB - Self Cert Mortgage

CloverFTB

Hi,

Thank you for your time and help - any advice is appreciated. My partner and I are both self-employed FTB's and have recently reserved a new build for completion in January. We are looking for a self cert mortgage and would really appreciate some advice on which lenders are likely to accept our application.

Our situation is:

Need 90% LTV Self Cert Mortgage (need £275k = 90% Value)
Both Self Employed (one for 2 years other for just under a year)
Earn 42k each (84k combined)

Credit Ratings:

Partner has 'excellent' credit rating and is currently paying £400 a month on unsecured loan

I have a low 'Fair rating' as I kept on forgetting to pay one credit card payments which meant I have 4 late payments in 12 months but none in the last 3 months. Have 4 credit cards - all now paid off. We haven't had any CCJs, defaults, arrears etc.

We would like a true self cert as our accounts don't really reflect our current and forecast situation.

We really need a lender that shouldn't reject us on my credit score or for us being FTB. We would rather pay slightly more for a while if we are likely to be accepted. we cannot risk rejection at this stage.

Can anyone recommend any lenders that would be likely to accept our application?

Many thanks for your time & help.

Clover

Conrad

There are 90% options but beware many will expect you to declare 3 years income figures from self employment so from the outset you need to narrow it down to just those that accept 1 years fugures as follows,

*Kensington
*Amber - not sure about FTBs though
*Bristol & West - but probably wont pass their credit score given what you say above

The concern I have is timing. Lenders criteria and rates are all over the place due to the funding crisis (as we see with N Rock). As a result lenders are WITHDRAWING offers AFTER they make them! Indeed, some lenders are closing without notice and canceling all mortgage offers.

So the key here is for you to use a very large stable lender to avoid chaos prior to completion. You need a very very experienced knowledgable broker who lives and breaths financial services - not the type who reads the sports pages instead of the FT. Such a personhoovers up financial knowledge for fun and they are more liekly to know whats around the corner. Avoid anyone spivvy and sales no matter how charming. Sometimes a grumpy honesy type is what you need.

CloverFTB

Hi Conrad,

Thanks for your advice and suggestions. Unfortunately Kensignton have a 85% LTV limit on new builds. I thought Bristol & West might have been an option but do they have strict lending criteria?

It is very worrying especially now with NR. I just hope we can find a lender and get this completed successfully :-/

CloverFTB

Hi

Can anyone offer any recommendations for any other lenders who would be more likely to offer us a mortgage based on our situation and credit history above?

Many thanks

Clover