Self Certification Mortgage - Any advice?

royalsaver

I have a mortgage on my main property and am on a salaried income. I am also self employed, however have no proof of income on this income. I am looking to use the second income to invest in property. I wish to keep this separate from my main income/mortgage so do not want to have anything secured on it.

Can anyone advise on whether a self cert mortgage is the why to keep this investment completely independent? A reputable borrower who deals with self certs? Any general pointers or advice regarding self certs?

Thanks

herbiesjp

Would you be looking at a Buy to let property?

If so then it is treated seperately and the mortgage normally agreed on the basis of the estimated rental income for the property - no need to do self cert

royalsaver

Hi,

I would be looking to sell on not renting.

herbiesjp

What figures are you looking at?

What is the purchase price? What mortgage do you need?

royalsaver

Sorry - Had to go out!

No specific property yet, however would be looking at £130 - 140k purchase price with approx £100k mortgage.

WHA

royalsaver wrote:

I am also self employed, however have no proof of income on this income.

If you don't have accounts, how about sending them a copy of your tax return showing the business profits instead?

Fairdo_2

Depending on Rental yield, you could borrow up to 85% LTV (Loan To Value) on a Buy To Let basis. If you borrowed £100K on £130K Purchase, that would be just under 77% LTV. You would open the market up to more lenders by borrowing 75% or less.

As herbiesjp said, you could do it on a Buy To Let basis. Some lenders will take a valuation on an expected rental yield and lend you the money based on that. If you decide not to let it out later on, they will not be in a position to penalise you if you do it up, sell it on and pay off the mortgage instead.

I have done this as part of a balanced portfolio recently,where she wanted to keep her options open. We placed 2 of her mortgages on a Buy To Let basis, with no Early Repayment Charge (Penalty) and she now intends to sell them. Obviously she has to pay the mortgages whilst they are being developed, but it is a risk she took.

As they work on the assumed rental yield, they don't need to clarify your income.

Be careful about who you use, as they have different criteria and conditions between lenders. I would suggest you take advice from a broker on that to ensure you get the right lender.