Self Certification Mortgages

loobie

please can someone help me. I am trying to find a good company that does self cert mortgages that won't screw us on the valuation fee, arrangement fee and legals. If self cert is no good, then someone who deals with not exactly adverse credit, but a few minor problems a few years ago, so am dropping off the credit file over the next 18 months.

We can't afford to wait that long to change the mortgage as our current one is libor based and has gone up over £100 in the last 18 months.

Any help is greatly appreciated.

Thanks

Conrad

loobie wrote:

please can someone help me. I am trying to find a good company that does self cert mortgages that won't screw us on the valuation fee, arrangement fee and legals. If self cert is no good, then someone who deals with not exactly adverse credit, but a few minor problems a few years ago, so am dropping off the credit file over the next 18 months.

We can't afford to wait that long to change the mortgage as our current one is libor based and has gone up over £100 in the last 18 months.

Any help is greatly appreciated.

Thanks

Lots of companies do self cert and have lower fees. Some dont use the term
self - cert, instead they use terms such as 'fast - track'.
Your current Libor mortgage will probably have a significant early redemption charge.

Can u provide answers to these:
Property value?
Total loan required?
Exact property type?
You say u want low fees, but what sort of rate do u want (fixed / variable)?
Can u proove sufficient income (lenders may not request proof if you are borrowing less than a certain %)?

Be very careful to try and avoid purely sub - prime lenders if you can.

Also watch out for brokers that quote u a low rate then 2 months later the product actually offered has worse terms.
One lender in particular 'GMAC' might provide a 'binding decsion' up front, however this is by no means binding and they may later decline you or offer worse tems.

Remortgages take as little as 4 weeks but may take 12 weeks or more. Any promises on timescale ought to be taken with a huge pinch of salt.

satan666wayne

http://www.ucbhomeloans.co.uk/

payless

Direct quote from FSA

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Self-certified mortgages were designed to cater for people who are self-employed and have difficulty in showing that their earnings are enough to make the payments on the mortgage they are applying for. This could be because they have not been trading for long enough, they have more than one job, or they rely on bonuses for a large part of their total pay.
Don’t let anyone persuade you to overstate your income in order to get a very large loan. If you lie about your income, you could end up with a loan you can’t afford. You’ll also be committing a fraud and could get a criminal record.

Don’t be tempted to overstate your income. If you end up with a mortgage you can’t afford, you could lose your home.

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Fairdo_2

Here Here payless.

Couldn't put it better myself.

payless

IMHO its about time the lenders took responsibility- if they are prepared to lend purely against credit score and equity, then fair enough - do it, so long as we all know the score - but I feel self certification is a way for lenders to pass the buck onto brokers ( I for one refuse to be taken in) or the clients themeselves.

True self cert really should be a very small % of the total mortgage business, and even that could be reduced by better understanding of accounts / underwriting.

Fast track is something esle , and rightly lenders don't charge a higher rate , but the warnings above still stand - if not more so, as you are actaully saying you can prove the stated income if required.

Fairdo_2

I agree totally with this payless.

In fact, the regime that I work under is very hard on this and there is a big discouragement for Employed Self - Certification and you have to have a very good reason for going that way. As payless said, you should be able to proove income anyway at a push.

However, what confuses me is in this regime, there are expectations that there has to be a percentage of "risk" cases (including the above) going through the books. Otherwise they would want to see all cases to ensure that I would not be putting them through on a Non-risk basis. However, at 6%, I personally consider this quite high.