Self Cert Mortgages

[Hopeful FTB]

A friend of mine has recently seperated with partner- they have 2 kids- selling the family home and splitting the proceeds and then they are both buying individually.

Found out that my friend has self certified a mortgage- works part self employed for one company and on the books for another- earns about 30k a year and has had a 220k mortgage agreed without the need for any proof of income of any kind.

I thought that this wasnt happening anymore- my friend is very pleased as they thought they couldnt get a mortgage - much cheaper than renting apparently.

I didnt know what to say.

[long time lurking]

Mortgage in principal ? how much are they putting down as a deposit as that is a major factor in mortgage`s these day`s I would be surprised if they are getting self sert on 80-90% LTV

[jaspers]

Don't feed the..... but for those passing through here are the BoE figures for specialist lenders linky and the full data set linky

[EmpiricalBear]

Seems highly unlikely.

It took me months to get a mortgage, and I have audited accounts for three years and a £70k salary. Self cert was impossible. I used a very persistent IFA to arrange this. Without her help I'm sure I would have found it impossible. For the record I had to provide, the accounts, bank statements for both business and personal accounts for the previous 6 months and proof that I had the funds available to pay the 40% deposit. Having received an offer in principle, it took us a while to find a house. Then when we found one I had to go through the same audit a second time. Then we lost that house and bought another... they wanted to audit me a third time! That time I said no, and they underwrote the load anyway. This is all current, we are completing in the next couple of weeks.

The only way I found it possible to get a loan that did not involve intrusive examination of my finances would have been to take out a BTL loan on the property. For that no proof of income is required, only proof that the rentable value is sufficiently high.

[winkie]

Now more and more lenders want borrowers that require a BTL mortgage to not only show proof of rental income but also to show proof of their own income to cover should the rental income not be met....in other words unless you pay all in cash.....proof of income to cover the debt should have to be shown.