[Ryan @ Transparent, Carlisle]

So in general what criteria do they look at?

ie; how long you have been self employed
turnover or average profit?

cheers

[JSMC]

mines is up for renewal soon and this will be first time  i have been self emplyed whilst applying for new terms.

[♠Winp®oClean♠]

So in general what criteria do they look at?

ie; how long you have been self employed
turnover or average profit?

cheers

If this not a remortgage-

3 full years accounts (if it's still the same)

I'll tell you now Ryan, unless you've got a huge amount of cash & some serious security mate you've more chance of catching viral gout!!

[Ryan @ Transparent, Carlisle]

i have a very good deposit to put down 

[♠Winp®oClean♠]

i have a very good deposit to put down 

You should be ok then mate.  Have you got 3 years accounts?

[Ryan @ Transparent, Carlisle]

nope 

however, i have just done a little research into this, and they say that some lenders will accept 2 years accounts.

[JSMC]

what about if yer just renewing terms if current deal has run out?

[Klean07]

I was one of the lucky ones that managed to get a self-cert mortgage when I moved here in early 2008.
I didn't need to show any accounts as long as I had a good credit record which I have.

They have scrapped all self-cert morgages now due to the reccesion.

[JSMC]

so if self cert mortgages are scrapped what do you do ?

[♠Winp®oClean♠]

what about if yer just renewing terms if current deal has run out?

The more equity you have in your current property the better the deal you'll get.

[prestige cleaners]

i got  a 10 yr fixed mortgage just before the interest rates plummeted (sods law) for £40k. i am a bit worried what theyre going to charge me when it finishes, as i took it out before going self employed.

[♠Winp®oClean♠]

nope 

however, i have just done a little research into this, and they say that some lenders will accept 2 years accounts.

Best thing to do Ryan is go & see an independent whole of market broker. Shouldn't cost you anything & they'll do all the leg work for you. Still do your own research of course.

I once had a broker get me a mortgage that I couldn't get myself. However, since that I've been able to match anything a broker has offered.

[Klean07]

Mine was up for renewal in April. I tried to get a better deal somewhere else but because my accounts werent showing I was earning over £30,000 Im got turned down. So stayed with the one I had before on a variable rate which was £30 cheaper per month than before because of low interest rate.

Unless you have around £25,000 deposit you wont stand much chance these days.

[Ryan @ Transparent, Carlisle]

Mine was up for renewal in April. I tried to get a better deal somewhere else but because my accounts werent showing I was earning over £30,000 Im got turned down. So stayed with the one I had before on a variable rate which was £30 cheaper per month than before because of low interest rate.

Unless you have around £25,000 deposit you wont stand much chance these days.

i can put a 35% deposit down on the property i have in mind

[DMG Window Cleaning]

The banks wont do self certification mortgages since 2006...

This means you need 3 years accounts or 2 years a 1 year projected accounts.

Most mortgages you can get with a 10% deposit but the most mortgage products are for those with a 15-25% deposit. If you can find them there are a few 5% deposits without a higher lending charge attached.

You shouldnt be paying more than 4-5% interest above base rate so make sure you shop around for a good deal.

Make sure you also check clauses to contracts as many now have a penalty fee attached if you sell the property within 3 years


Good Luck
Danny

[ronnie paton]

The banks wont do self certification mortgages since 2006...

This means you need 3 years accounts or 2 years a 1 year projected accounts.

Most mortgages you can get with a 10% deposit but the most mortgage products are for those with a 15-25% deposit. If you can find them there are a few 5% deposits without a higher lending charge attached.

You shouldnt be paying more than 4-5% interest above base rate so make sure you shop around for a good deal.

Make sure you also check clauses to contracts as many now have a penalty fee attached if you sell the property within 3 years


Good Luck
Danny

this is untrue i got my self cert 2 years in april with halifax, all thoough idont think there  are any on the market now.

[Klean07]

The banks wont do self certification mortgages since 2006...

This means you need 3 years accounts or 2 years a 1 year projected accounts.

Most mortgages you can get with a 10% deposit but the most mortgage products are for those with a 15-25% deposit. If you can find them there are a few 5% deposits without a higher lending charge attached.

You shouldnt be paying more than 4-5% interest above base rate so make sure you shop around for a good deal.

Make sure you also check clauses to contracts as many now have a penalty fee attached if you sell the property within 3 years


Good Luck
Danny

Your top paragraph aint true mate. I,m with Bank of Scotland and got my self-cert mortgage in April 2008. It was through an independant mortgage adviser though.

[Paul Coleman]

It's pretty much back to the way things were years ago though there may be a few exceptions - i.e. maximum loan of 3 - 3.5x annual income (profit) and maybe add 1 or 1.5x annual income for a partner's income.  Bare minimum of 5% deposit but usually 10%+ required.  Those deposits are still out of reach of many first time buyers so market stagnation and falling prices are with us for some years to come I think.  Added to that, the government's change in mortgage interest benefits are kicking in so that will inevitably lead to more repossessions meaning more properties at auction meaning lower prices again.  In truth, I feel that the self cert mortgage (along with some other factors) helped to keep prices artificially high anyway.  Once we reach the point where 5%-10% deposit + 3.5x annual income is reached, that is when we will hit the bottom and things start moving again.  Around here that would mean a basic property on the market for about £90k rather than the £110k - £115k currently.  I may just about stay out of negative equity but it will be a close call.  Not important to me personally though as I don't want to move and I don't want to borrow on it.
I have heard of gay male couples being treated differently by some companies  (3.5x joint incomes) but I guess that's only reasonable because there is no chance of anyone packing up work through pregnancy.  Personally, I would prefer to continue living in a hovel 

[Chris @ Aworka]

I heard somewhere (BBC business news I think) that 40% of mortgages sold recently were still self-certified, despite the recession/credit crunch. I must admit I was surprised to hear that! However, you will need a hefty deposit (at least 25% I would have thought) and be prepared to pay a higher interest rate (might not be too much of a problem given how low the base rate is though). I agree that a mortgage broker is the way to go. When I last got a mortgage, my broker was able to find a lender prepared to lend me twice as much as the bank I'd been with for 20 years!

[Helen]

Mine was up for renewal in April. I tried to get a better deal somewhere else but because my accounts werent showing I was earning over £30,000 Im got turned down. So stayed with the one I had before on a variable rate which was £30 cheaper per month than before because of low interest rate.

Unless you have around £25,000 deposit you wont stand much chance these days.

i can put a 35% deposit down on the property i have in mind

Why not visit your bank where your business account is held. Obviously they can see at a glance what your income is and has been and "may" just accept that rather than 3 years certified accounts.  Most banks are really competitive with mortgage rates now. It is a good starting point to see what you can get and for comparison to other lenders. (Sometimes if you are cheeky enough and have a good realtionship with your bank you can even trim some off the rate )
Self employed are usually judged on nett income (after all expenses) not gross income as it is for employed. Once you have an answer and rate and monthly repayment cost from your bank, shop around and see if it can be bettered. Remember the best mortgage for you may not always be the cheapest. watch out for penalty clauses if repaying early, watch our for charges if you get a lower than normal rate, just do your sums before signing anything.
My only advise is that in my opinion the rates have been low for quite some time now and if we don't start crawling out of this economic mess soon, the only option the government may have left is to raise interest rates. If you can get a 3 or 5 year fixed rate for around 4.5% go for it. May be a little more costly than some at the moment, but who knows where the rates may be in a years time.