So self cert means I merely tell them what I earn?

hopeful_2

I am about to remortgage as our current deal ends in Dec and in the last couple of years I have left gainful employ and become self employed.

My understanding is I need a self cert mortgage and I also believe I just tell the lender how much I earn with no check on their part as to whether this is true.

Have I read this right because if so I'm on £100K and off to get myself a decent gaff in the countryside!

Seriously, how does it actually work and surely there must be some proof required?

silvercar

The lender has the right to verify any information you give them. If they find you have lied, they will withdraw the mortgage offer.

Obtaining money by deception is fraud and could lead to a spell in jail - one housing solution.

herbiesjp

Being self employed does not automatically mean a self cert mortgage - plenty lenders will agree a mortgage for you if you are self employed - no difference to be employed.

Well if you are earning £100k, I hope you are paying the right tax on that money - some people forget thatlender do make checks, one of them being using your NI number to check your status i.e. employed or self employed which can then follow on to other checks.

What is your true income? And how many years accounts do you have have?

What property values are you looking at, and what kind of deposit do you have?

hopeful_2

Well we have a current mortgage of £121000 on a £190000 valued house. We would like if possible to extend and need about £50000 to do so.

We have 2 years accounts (well one and a half as the first accounts were up to April 06 when we started in Oct 05) Lat year we had gross profit of £29000 and net of £21000. My wife also gets child benefit and tax credit of some sort.

dunstonh

Have I read this right because if so I'm on £100K

Lat year we had gross profit of £29000

So, you are not on 100k then. This is the sort of abuse that is high profile at the moment and the lenders are being encouraged to crack down on.

You just about have enough to justify your current mortgage so looking to borrow more is going to be a push.

hopeful_2

dunstonh wrote: »

So, you are not on 100k then. .

My £100K claim was always tongue in cheek, I just wanted to know how it worked. Looks like we may be staying as are for the moment until next year when we make our £100K !

Dan_Collins_2

LOLdunstonh I think he was pulling our plonker!

Hopeful if your accounts do not reflect your income because they are really a year behind then Self Cert can be used. However on your current income I would really think before extending the mortgage.