Can 'anyone' get a Self-Certify mortgage?

The interest payments on £300k are going to be more than your take home salary. How can you possibly afford that?

By renting out my apartment in Richmond.

Does anyone have any answers to my questions, rather than questions about my questions? :)

No, a self cert mortgage is one where you say what your income is and the lender still uses its own lending criteria (e.g. income multiples) to decide if it'll lend, without checking your income. However, it's fraud to overstate your income. It's just that some people have trouble in proving all their income (dividends, for example). If the lender suspects you've overstated it to a significant degree they will be wary. After all, they don't want to lend to someone who'll default. It's not in anyone's interests.

Rob Graham

What you want is a mug, not a lender.

You cannot afford the interest payments on a borrowing of £300k. The interest alone on a loan that size (Assuming UK BoE Rate) is £1187.50 per month. Not to mention a 13.04 Income multiple (Excluding Rental Income)

You have 2 other mortgages on rented out property, all you need is a period of 3 months where one of the flats are empty and you are going to get into debt to make sure you pay your mortgage.

Self certification Mortgages use the same criteria as Non Self Cert Mortgages(therefore you cant afford it unless you lie), the only difference is the lender does not initially ask you to prove your income. With most Self Cert providers they still reserve the right to ask for the info which they will do in a certain percentage of cases in case people are lying, or if they get a sniff you might be a little dodgy.

what you are looking for is a non status mortgage whereby they don't ask what your income is. what you will find though is that Non Status mortgages you need a bigger deposit and the rate is a lot less favourable.

I can't? Trust me, I can. I have other money put away, but don't want to put it into the mortgage for various reason.

My statement was based on your salary. Up until now you have not mentioned that you have other money put away. But saying that based on your salary you cannot afford the payments. Contact virtually any lender with a basic of £23k and ask to borrow £300k and see how far you get.

Using a standard multiple of 3.5 times simgle salary, you need a basic of £85715 to sustain a £300k mortgage.

If you have other money, why not use it for a bigger deposit?

In message , Mark Hamptons writes

No, and any way they would be 'SC' not "SS". With a self certify you 'certify' what you *actually* earn. The surplus rent from your two rented properties would need to be in the order of £70k per annum for this to work, and somehow I dont think they will.

What you are after is a loan secured on a house where the potential mortgagee doesnt ask how much you earn. Id he DID ask, then as your income is so far short of that required to get the level of loan you need, then you wouldnt get the loan.

Yes, they are known either as 'non status' or 'pawnbroking' but you still wont get one because the maximum 'loan to value' ratio is generally less than 75% whereas you are asking for 90 - 95%.

Go and see a *decent* IFA. With a bit of luck they will talk you out of this.

Just out of interest, what worth is a 'personal guarantee' from a debtor that they can 'afford' the repayments?

That would be 'If' not "Id".

:D Anyway, thanks for the feedback. I obviously did not put enough info in my post, but I can't see how I'd need 70,000 rent profit to afford a 1,000 PCM mortgage per year. 12 x 1k = 12,000. That's more than covered by my rentals and salary.

Anyway, I will indeed see and IFA, and I also have a good spreadsheet so I can work out my actual budget, allowing for void periods too.

I came here just to ask about SC mortgages, and I now have the answers so thanks.

In message , Mark Hamptons writes

I'll have to sack that secretary!

I understand your logic here, but 'mortgage lenders', with one noteable exception, calculate their maximum loan as a multiple of income. This typically starts at 3 times income but most lenders will lend more than that. So £300k/3 = £100k. You have a salary of £23k, so £100k-£23k £77k.

Banks will lend on commercial terms on an 'affordability' basis, and this appears to be unaffordable as well. Your £1k per month suggest an interest only mortgage at 4% which is very optimistic for a self cert and almost impossible with a 'no questions asked' loan.. In reality the interest will be higher and a bank would be looking to get 2 or 3% over base = 7.75% possibly = £1937 per month.

Best of luck, but I am very, very anxious that you are going to get into deep water here. Dont take this the wrong way but I have seen more bad debts than you will earn in a lifetime and this has all the ingredients of another. Please be careful.

Advice noted, thanks. I won't go for anything that doesn't work in the spreadsheet.

What is the 'notable exception' you mention re the lenders using income multiples?

In message , Mark Hamptons writes

Dont rely on the spreadsheet. Thats the bit that worries me.

Nationwide. But they will want proof of income for the LTV that you want. I merely mentioned them for completeness.