TheBigMan!!

Quick question - want to remortgage up to 75% LTV on a fixed rate residential for main residence.

Do Std Life ask for personal finance info (ie, proof of salary etc) when under 75% of LTV these days? Sure they didn't used to, but not sure now they've switched to "affordability".

fast bloke

They say they don't ask for income proof for <75% LTV, but sometimes they do. They will ask for outstanding credit and history though. (They have a range of products called 'non verification' but as far as I know they are only useful for non PAYE people.

Northern Rock will do a non verification for up to 85%. Lower rate and less fees.

Tiggs

do they still?

they told me they no longer do.

TheBigMan!!

So do Northern Rock do a non-verification 3yr or 5yr fixed rate?
Only want 75%.
I'll go and look, but I know sometimes these sorts of offers aren't on websites...any of you know the current rates?

fast bloke

I hope so - I just sent them one yesterday - employed person who makes a bit of cash on e-bay

Big Man - I'll check the rates for both and post them tomorrow

TheBigMan!!

While you're at it FB, can you answer me this?

Found a site (moneysupermarket IIRC) that showed Northern Rock rates....and for a 5yr fixed rate, the rate was the same for both std mortgage, and non-verification mortgage.....think it was 4.99%.

Now...what's the downside of the non-verification route? Surely if all else is equal and you had a choice, you'd choose to not bother with the hassle of digging out pay slips, etc etc and just go self-cert???

...or is there a step I'm missing? Is the onus on the IFA to satisfy themselves the client can cover the costs, and if he doesn't, does the IFA get into trouble??? Like your client, I have additional income from non-employment means, but do I have to provide proof of all this to the IFA?

Just wondering......

fast bloke

I think the standard rates go up to 95% while non verification go up to 85%. The non verification is just a new version of self cert that lenders have created to keep the FSA happy.

For a self cert mortgage, we (advisor) should still be certifying the income, but we have the time to sit with you and have a chat about your bank statements, paypal account, window cleaning round. At the end of the day, if everything is done correctly, a self cert mortgage should be based on your real income, all of which you should be paying or planning to pay tax on. Then there is a middle ground - single mother with three kids working full time but getting wftc, ctc and child allowance. Technically the childrens tax credit and child allowance can't be considered as allowable income, as they are are really aimed at providing food and childcare - Now - mum needs to include all of that income to get a straight remortgage saving her £100.00 a month over her current payment, then it makes sense. If said Mum wanted to use it all to buy her first house then it wouldn't - she would be better to go for a cheaper house.
Next comes mr window cleaner - all cash income - claims he earns 4k a year to the taxman, but drives a new merc - arranging a self cert mortgage for this guy is tax fraud, so most IFA's would steer clear
Finally is mr e-bay trader who wants to buy a 300k house - he makes 4k a month but hasn't been doing it long enough to have any accounts. I look at his statements and see that he he would have enough to pay the mortgage, pay his tax and have £500.00 a week left to live on. Sounds reasonable to sort him a mortgage, but the advisor would have to lie about the nicome to make the numbers fit. This is mortgage fraud. Advisor can go to jail for 5 years, are at the very least lose status wth the FSA, so again any honest advisor should walk away.

All in it depends how much the advisor values his job. If he arranges the mortgage without certifying your income then 99% of the time there will be no problem. However - if you fall behind with payments a year down the line and then decide to complain that he shouldn't have advised you to take that mortgage in the first place, he will be in the **** big time.

TheBigMan!!

Thanks for that FB, very informative.

So what's the difference between self-cert and non-verification? What was done to keep the FSA happy? Seems the same to me.....

I quite like Tigg's mortgage. He filled in a form which required less info than a mobile phone form, and got £300k.....without proving anything apparently.

So...presumably ALL non-verif applications have to go through an IFA and can't be done by oneself?

Tiggs

yep...and just re-done it as its now 2 years old - another 3 years at about 4.8 i belive (fixed)

should add....although the firm i own is "in the business" this was done via a mate who's also a mortgage adviser (because we dont involved with mortgages because they are too boring )- so i got treated no different to any of his normal clients.

T