Self cert and bad credit

pauloharpo

Hi all. I am looking at a new house purchase. I have a mortgage with Gmac RFC which can be renewed in July. Present house value about £130000 and have £88000 mortgage. Looking at £200000 house, so would need around £160000 mortgage. I left my civil service job 6 months ago to concentrate on my business (Ltd co. 25% shares) I receive £12000 net from this, and my wife £5000 net. I also have self emp income from my hackney carriage. I have a ccj from 2005 £238, and have missed a few credit card and other payments in the past, so my creditating is not great. I have never missed a mortgage payment in the 3 years i have had one (around £750 p.m)
No accounts for self emp inc.

What are my chances? I am confident in my ability to afford the mortgage - how far will lenders bend on the self cert part?

Thanks, and sorry for thge long post!

Northants_Simon

You are looking at a £158,000 (130k - 88k +200k) mortgage on a joint income of £17,000. Ouch!

I'm self employed, with 8 years acounts and a perfect credit history. I have been turned away by many lenders for a £175,000 mortgage, which is 3.25 times my income.

Banks don't favour the self employed at present. Self cert is pretty much dead, unless you have a perfect credit score and at least a 25% deposit.

Gloster_Advise

Hi pauloharpo

As mentioned S/cert to 80% is a grey area, achievable yes, but with very high rates.

Aletrnatively you could go full status, but as northants mentioned you r net income would never make a £90K mortgage let alone £160K.

The CCJ may have an impact on you, but being that small may be ignored.

Maybe you should register your self employed income and utilise the the books on the Ltd company. You are experiencing the bad market conditions, and should you not be able to provide income verification in most cases unfortunatley self cert applications with a certain LTV will find it very difficult to get a mortgage and when they do the rates are eye wateringly high.

Regards
Si

pauloharpo

Gloster_Advise wrote: »

Hi pauloharpo

As mentioned S/cert to 80% is a grey area, achievable yes, but with very high rates.

Aletrnatively you could go full status, but as northants mentioned you r net income would never make a £90K mortgage let alone £160K.

The CCJ may have an impact on you, but being that small may be ignored.

Maybe you should register your self employed income and utilise the the books on the Ltd company. You are experiencing the bad market conditions, and should you not be able to provide income verification in most cases unfortunatley self cert applications with a certain LTV will find it very difficult to get a mortgage and when they do the rates are eye wateringly high.

Regards
Si

My self emp income is also around £20000 p.a. and i can more or less show this in bank statements etc. House i am after is £185,000 and mine should bring £130,000. Members Mortages seem to think it shouldn't be a problem (spoke today) as i have 20%deposit.
Anyway, what would be a very high rate? I mean what is high and fair, or what is high and unfair, if you see what I mean. I do know I am a higher risk etc and expect to pay more.

Thanks,
Paul.

Gloster_Advise

Off the top of my head paulo S/C 80%, around 7% ish for those lenders that will do it.

The people who have quoted are right and it is very possible for you to get a mortgage so don't worry too much.

Regards
Si

pauloharpo

Thanks, Gloster. Around 7% does seem ok to me and isn't too hard to pay!!

Just the whole thing seems so daunting as we have not done this before except the RTB we are at now. Here go's..........

Thanks,