I think you missed the point, non-status mortgages don't work on salary multiples, you just promise to pay - at a higher rate than usual no doubt, and with a reasonably low loan-to-value ratio so the lender can (probably) get its dosh back if you default. At 5% a 170k interest-only mortgage would cost 8.5k a year which is not that much. OTOH you will be blown away if interest rates rise and/or house prices fall.
Is this not where they offer higher income multiples on certains schemes like the fixed rates?
I had one identicle to that, the guy could self cert, but the amount he declared wasn't enough for a tracker and he could only have the 5 year fixed rate with the 4.83x income multiple.
This is nothing to do with self cert, just not enough declared income for that scheme, had his declared income level been higher, Halifax head office confirmed that he could have had any scheme they offer on a self cert basis.
Arfie
In article , Arfie writes
Why didnt he just declare a higher income? The idea behind self cert is that they dont check your income.
Lie you mean?
He gave his income figures, the computer calculated it was OK, but after Halifax did a credit score and it was a low score the income multiples were reduced. He wanted me to re-submit it for him with higher figures, I obviously wouldn't be part of a dishonest application and told him so in writing and then went and re-applied to Halifax through another broker with higher figures and got caught out. ;-)
The idea behind self cert is for people who have income that doesn't fit in with the lenders normal criteria (ie the self employed, commissioned sales people and temporary workers) can still borrow a suitable amount, it is not so you can say you get 50,000 if you only get 30,000, this is plain lying and it is irresponsible and a disaster waiting to happen.
Arfie
So what are the rates? They may not load the SVR, but what about discounts? Also I'd point out that Richard said non-status rather than self-cert, not quite the same thing.
In article , Arfie writes
Arfie,
I agree, in principle, with what you are saying. However, it is a fact that the lifestyle of someone earning £50,000 p.a. may be such that they could not afford to repay the mortgage which the salary would warrant. Equally factual is the possibility that the lifestyle of someone earning £30,000 may be such that they could easily afford to repay the mortgage which a £50,000 salary would warrant, and I dont think the lenders could blame someone who takes advantage of their system.
The guy you refer to was obviously somewhat naeive to think that they would not match his declarations.
Having said all that - if you want people to be whiter than white, they can take out Non-Status mortgages, which is perhaps what I should have discussed in the first place . As Stephen pointed out, the thrust of my own argument is based on Non Status mortgages.
In message , Arfie writes
Not in this case, it was based on credit score.
I'm aware of the situation you describe, but I stand by what I say.
I futher example is that they will ask for proof of income on one scheme and not on another because of credit score.
I'll get my coat :-)
Arfie
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.