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Self Cert Mortgages

Hello All, I hope you guys can give me a bit advise about mortgages because I don't think I am being told the whole story by the mortgage broker. I am in a well paid job £30+ K and I am looking for a house in London. When I was looking at mortgages I went to some banks who offered me a mortgage based on 3.5 times my salary. which is probably enough to buy a flat. I then went to some brokers who offered 6 times my salary using this self cert mortgages and fudging my salary based on bonus/extra work that I "could" earn. I said I think about it and ran out. I did think about the costs based on the monthly payment and I believe I can afford paying, I could further afford it if I rented a room out. So this might be the only way I can afford a house. Can someone therefore advise me of the legality of this mortgage? It seems that many people have chosen this path to buying a house. Any other views would be most greatful.

Thanks for your help,

Seemd

Reply to
seemd
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They are a gray area, as you *might* be lying on the form when you state your income plus "expected" earnings.

Be serious - what happens is interest rates shoot up to 15% ? Can you still afford the repayments ? You mention renting a room out - what happens if you can't do this (and the mortgage lender may not let you)

You have to remember the clause that goes with every mortgage... Your home is at risk if you cannot keep up the repayments.

Just be careful.

Reply to
icornish

Also, be aware that any house purchase nowadays has to be notified to HM Customs & Revenue.

If you claim you earn, say £60k, don't be surprised if you are asked to pay tax on £60k !

Regards

Simon Clark Business Telecoms

Reply to
simonclark123

In message , snipped-for-privacy@hotmail.com writes

Only for the purposes of Stamp Duty Tax.

How would that happen then?

Reply to
john boyle

Another type of self cert exists (ed?) that does not ask you to say how much you earn - but to say that you can afford to make the payments. These tend to have slightly higher interest rates than sef-cert income mortgages.

Note other comments about rate rises etc made by others in the thread.

Reply to
rob

Known as "non-status".

Reply to
Ronald Raygun

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