Self Certification Mortgages - do they really exist?

[bizzylizzy]

We sold our house three years ago and took a break to write and publish some children's books (a non profit making enterprise). We used some of the capital from our house sale to pay for this 'sabbatical'. Up until then we'd run a design business for almost 20 years.
We have now started up the design business again and have decided to look around for another house to buy. Not as easy as it sounds. Having taken a break we have no accounts to speak of for the last three years. We cannot find a lender (apart from those that service people with ccjs etc) who will offer us a mortgage. We have a good credit record, �100k deposit to put down and have offered to pay the first year's mortgage payments in advance. Still no luck.
Does anyone know of a lender who will lend on the proviso that we sign to say we are capable of servicing the mortgage? They all say they offer self cert but they all want sight of accounts. Help!!!!
bizzylizzy

[BenDToy]

I think you mean a non-status mortgage, not self cert. Don't go to the lender, use an intermediary such as a mortgage broker. They have access to companies that you don't, and you shouldn't have to pay them. They are paid by the lender. I would suggest that with a �100k deposit you shouldn't have any problem at all. You may have to fill out the application form in a "creative" manner, but I think you should be OK. Goodluck.

[Eeeek]

these type of mortgages are know as either self cert or non status depenfing on the lender itself. They are basically the same thing but the companies cant advertise that they dont ask for your income and/or accounts otherwise they encounter problems should they ever have to repossess as they courts basically say that they didnt know whether you could afford it or not. Bank of Scotland are great for these mortgages as long as you have more than 20% deposit and you are not penalised rate-wise for not being able to prove your income. And as the previous comment says, they are paid a fee from the lender so should cost you anything.

[Hgrove]

I think Alexander Hall and John Charcoal are well known mortgage brokes in London.

[Bob Carter]

As a freelance journalist working on a variety of contracts I found the same problem some years ago. A good independent financial advisor should be able to find you a mortgage. We used Ivan Massow Associates in London (well actually Ivan handled it himself at the time) and were very happy. Google Ivan Massow on the web if you want to ...

[Mrs_Pegasus]

I understood that if you had 25% deposit you could obtain a non-status mortgage.  Try an IFA but also place a call with Standard Life mortgages, they certainly do undertake non-status mortgages but you may well get hammered with a hefty indemnity insurance premium, this allows the lender to claim back 75% of the value of the property if you should default.

 

Also ask yourself the question, If you were a lender, would you lent YOU the money!  If the answer is yes based on knowledge you have then present this to any potential lender.

 

Good Luck