mortgage question - self cert, etc???
06 January 2005, 10:23 AM
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mortgage question - self cert, etc???
hi folks
long story short, a friend has split with his girlfriend and now needs a place to live.
rent on 1 and 2 bed apartments in belfast city centre is about 400 and 550 respectively.
these apartments cost 90k and 120k respectively. so, you are basically paying a full mortgage payment to rent therefore you might as well buy the place than give your money to a landlord.
the problem is that he earns 14-15k (2nd year into working for accountancy firm, so money does go up but starts at bottom!). this means he can get about 50k mortgage. he can afford to rent, but not buy, despite the amount being the same!
i've heard about self-cert mortgages and the like - so the question is, is this mission impossible or is there some light at the end of the tunnel?
cheers
steven
long story short, a friend has split with his girlfriend and now needs a place to live.
rent on 1 and 2 bed apartments in belfast city centre is about 400 and 550 respectively.
these apartments cost 90k and 120k respectively. so, you are basically paying a full mortgage payment to rent therefore you might as well buy the place than give your money to a landlord.
the problem is that he earns 14-15k (2nd year into working for accountancy firm, so money does go up but starts at bottom!). this means he can get about 50k mortgage. he can afford to rent, but not buy, despite the amount being the same!
i've heard about self-cert mortgages and the like - so the question is, is this mission impossible or is there some light at the end of the tunnel?
cheers
steven
06 January 2005, 10:32 AM
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anything is possible.
needs a mortage adviser ( i recently did self cert for myself for about 300k and it wizzed through....self emp for under a year so no earnings on record)
T
needs a mortage adviser ( i recently did self cert for myself for about 300k and it wizzed through....self emp for under a year so no earnings on record)
T
I waited but thought I'd reply in case you were off here today 
06 January 2005, 11:35 AM
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There is an arguement that Self Cert mortgages have artificially propped the housing market up!
Myself - I am waiting for the market to reduce a little - and I will definately be getting a fixed rate mortgage as I believe interest rates in the next year or so will rocket. They did in the late 70's (doubled overnight).
My advice would be to hold out for a while...
But what do I know, should have bought 4 years ago when I left Uni (couldn't afford to buy then either, but if I had taken the plunge then, I would be sitting pretty now)!!
As long as you can coupe with interest rate increases and don't miss any payments there shouldn't be any problems..
Good luck
Myself - I am waiting for the market to reduce a little - and I will definately be getting a fixed rate mortgage as I believe interest rates in the next year or so will rocket. They did in the late 70's (doubled overnight).
My advice would be to hold out for a while...
But what do I know, should have bought 4 years ago when I left Uni (couldn't afford to buy then either, but if I had taken the plunge then, I would be sitting pretty now)!!
As long as you can coupe with interest rate increases and don't miss any payments there shouldn't be any problems..
Good luck
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06 January 2005, 03:44 PM
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Originally Posted by Silvafox
I thought self cert were for self employed only?
06 January 2005, 04:04 PM
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It's not "lying", it's just some lenders don't ask you to prove what you earn.
The GMAC product has recently been banned/no longer offered however that didn't even ask you how much you earned!
The GMAC product has recently been banned/no longer offered however that didn't even ask you how much you earned!
06 January 2005, 04:23 PM
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how are you lying?
you dont have to prove it?!
Its basically letting people take on the responsibility themselves for how much they can afford to pay for a mortgage- nothing wrong with that. If you are stupid enough to stretch way beyond your means then you deserve what you get
you dont have to prove it?!
Its basically letting people take on the responsibility themselves for how much they can afford to pay for a mortgage- nothing wrong with that. If you are stupid enough to stretch way beyond your means then you deserve what you get
06 January 2005, 05:01 PM
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The lender's happy with it. You normally can only get 75-85% loan to value, so if you are an idiot who over borrows they don't tend to lose any of their money if they repo it and have to sell it on.
06 January 2005, 05:26 PM
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Originally Posted by VTEC to Turbo
ially propped the housing market up!
Myself - I am waiting for the market to reduce a little - and I will definately be getting a fixed rate mortgage as I believe interest rates in the next year or so will rocket. They did in the late 70's (doubled overnight).
Good luck
Myself - I am waiting for the market to reduce a little - and I will definately be getting a fixed rate mortgage as I believe interest rates in the next year or so will rocket. They did in the late 70's (doubled overnight).
Good luck
06 January 2005, 05:33 PM
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Have to agree, not many pundits picking increasing rates, more likely to see some stabilisation and potentially some reductions in Q4.
Election result, housing market, retail spending all in the mix.
Election result, housing market, retail spending all in the mix.
06 January 2005, 05:57 PM
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Self cert (or salary cert) mortgages still ask you how much you earn - how can it not be lying to give a figure that is not what you actually earn?
A lot of the self-cert mortgages still work on the basis of income multiples so affordability is not down to an individuals. Additionally if the broker puts down an incorrect figure (which he knows to be wrong) then he is on very dodgy grounds.
If you feel you can afford a mortgage but not pass standard the standard income multiples 'test' then speak to a lender who will assess based on affordability (and who will take into account future earnings).
A lot of the self-cert mortgages still work on the basis of income multiples so affordability is not down to an individuals. Additionally if the broker puts down an incorrect figure (which he knows to be wrong) then he is on very dodgy grounds.
If you feel you can afford a mortgage but not pass standard the standard income multiples 'test' then speak to a lender who will assess based on affordability (and who will take into account future earnings).
06 January 2005, 06:24 PM
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Originally Posted by CupraT
Self cert (or salary cert) mortgages still ask you how much you earn - how can it not be lying to give a figure that is not what you actually earn?
However, i am very aware of how much i can afford.
06 January 2005, 06:31 PM
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Originally Posted by Freak
Im self employed-varies widely from week to week, let alone from year to year. Hence i cant put down my monthly or yearly income.
However, i am very aware of how much i can afford.
However, i am very aware of how much i can afford.
06 January 2005, 06:35 PM
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Originally Posted by JoeyDeacon
Isn't that considered as fraud?
06 January 2005, 07:34 PM
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Originally Posted by salsa-king
i had one nearly two years ago..... its a case of you having a good think to what you can pay... yes you can get a £200k mortgage on self sert... but lets be real.. if you can't afford the monthly repayments whats the point in going for it.
nice house wgile you figure out what to do about it!
06 January 2005, 07:42 PM
#24
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what i'm trying to say is ppl got in trouble cus they were saying they could pay back more than they could!!
I've not got a £200k mortgage!!!
I've not got a £200k mortgage!!!
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