Question on self cert mortgages?

building

I was told in the past that self certification mortgages can not only look at income (just dont ask as many questions) but also may take into consideration any other monies which may be coming one's way . is this definitely the case?
thanks in advance.

Fairdo_2

No it's not.

Unless you have a or some sums guaranteed to be available to you. If you are relying on Inheritance still going through Probate or a bonus or commission that may be due to you then it cannot be relied upon and should not be considered. However, if it is definately coming to you, then it could. However, some of these options could mean a high street lender being prepared to take it into account.

herbiesjp

As Fairdo says you should only be using income figures that you know you will be receiving.

You should not put down figures that you cannot justify.

The lender could turn round and ask at any time for proof of the figures put down, and then you would not be able to substantiate the figures.

Everyone should be very careful of self certified mortgages and how they are used.

suzanna

Hi,

I am slightly worried about the self cert motgages for the following reason,

My brother and his girlfriend (20 & 21) are dead set on buying a house, they only earn $25,000 between them, about $5000.00 to use for a deposit, they have 1 small child and so get child tax credit but not sure how much. They are looking at houses for $120.000 which scares the life out of me! I have tried to talk to them but it is falling on deaf ears as that is what they want and they argue that i brought my own house when i was 19 (i brought a four bedroom house for only $45,000 six years ago) and so why shouldnt they!

I am really worried that they will go down the self cert route and get themselves into big trouble, their rent is $450.00 per month and they pay their bills, i dont think they have any outstanding debts.

What i am trying to ask is will they be able to self cert themselves to get that size mortgage at their age or will the mortgage companys see straight through them and say a flat no??

I dont want to risk trying to talk to them again if i know that they cant get it anyway as his girlfiend makes it very obvious by grunting that they will do what they want regardless of any advise given and my brother will go along with her as he is so laid back.

suzanna

Hi,

I am slightly worried about the self cert motgages for the following reason,

My brother and his girlfriend (20 & 21) are dead set on buying a house, they only earn $25,000 between them, about $5000 to use for a deposit, they have 1 small child and so get child tax credit but not sure how much. They are looking at houses for $120.000 which scares the life out of me! I have tried to talk to them but it is falling on deaf ears as that is what they want and they argue that i brought my own house when i was 19 (i brought a four bedroom house for only $45,000 six years ago) and so why shouldnt they!

I am really worried that they will go down the self cert route and get themselves into big trouble, their rent is $450.00 per month and they pay their bills, i dont think they have any outstanding debts.

What i am trying to ask is will they be able to self cert themselves to get that size mortgage at their age or will the mortgage companys see straight through them and say a flat no??

I dont want to risk trying to talk to them again if i know that they cant get it anyway as his girlfiend makes it very obvious by grunting that they will do what they want regardless of any advise given and my brother will go along with her as he is so laid back.

payless

Lots of concerns here - but without going thro' them all -
self certs usually require a larger % deposit, and other restrictions often placed on FTB

self cert should not be used for those with straightforward incomes anyway, as these should be recorded as fact

see http://www.fsa.gov.uk/consumer/07_MORTGAGES/getting_started/selfcertification.html

mylittlefriendbaxter

unfortunately they will be able to get a self cert for that amount no problem.

i know some people who managed to get a 115% mortgage for 180k on an income of 30k ish, pure madness.

but don't worry most people here will come and say that housing bubbles are a good thing and its normal for an FTB to struggle!

moneysavingexpert(but spending too much on a house is ok).com