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Can someone let me know if a self cert mortgage is classed as a sub prime mortgage?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

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The answer from my advisors is; in most curcumstances no, more classed as a specialist mortgage. Prime lenders lend to self cert applicants.

Self certification mortgage
Self-certification (self cert) is a simple way of detailing your income without having to provide proof of income - you simply self declare what you earn.

Self Cert mortgages are designed for people whose income is difficult to assess or prove using the standard methods adopted by most conventional mortgage lenders. The specialist mortgage lender will be far more accommodating and they appreciate that different working patterns require a more flexible approach.

Self certification does have its limits though - most mortgage lenders will only allow you to prove your income in this way if you want to borrow less than 75% of the property's value, so you will need to put down a substantial deposit. However, some mortgage lenders may allow you to borrow up to 85% on a self-certification basis.


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Thanks for that! We are moving and Dave has a self cert mortgage and I was worried that if it was classed as sub prime he might not be able to remortgage at the end of the fixed term

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Skippy if you are worried about the latest rise in interest rates on sub prime mortgages, stop worrying, self cert is a seperate issue completly.

Sub-prime mortgages are those which do not conform to standard or prime lending criteria and cater for customers with adverse credit histories.


FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/

Please read our Initial Disclosure Document(IDD): http://www.leybridge.com/Leybridge-IDD.pdf

Thanks Mike!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

I was advised by my mortgage broker to speed up my new mortgage before the offer expires as GMAC are now charging 7-8% interest

whichwaynow

He's not wrong, their best adverse rate is currently 7.74%

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/

Please read our Initial Disclosure Document(IDD): http://www.leybridge.com/Leybridge-IDD.pdf

If you look around and work with the right type of broker who is experienced with this sort of scenario you can find some pretty good deals. How about a 3 year fixed rate at 7.1% fixed for 3 years for people who have been in an IVA for 6 months and all this at a loan to value of 95%! this is with a status product i.e. producing P.60`s and payslips, if not there is a self cert 95% once again for people in a current IVA for the last 6 months "conducted satisfactorily" and this rolls in at 7.2% once again a 3 year fixed deal. The point is every case is different and judged on it`s own merits. Hope this helps. Tony

Good point to make welshboy - every case and applicant is different and to be able to offer a decent mortgage product that fits a clients wants, needs and circumstances, a full fact find and a credit search at the very least, needs to be carried out.

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/

Please read our Initial Disclosure Document(IDD): http://www.leybridge.com/Leybridge-IDD.pdf

I managed to get a 2 year fixed rate at 5.45% when my credit rating was good. But I know how quickly 2 years will go by. The real shame is that Nationwide were not prepared to lend me any more money due to how much unsecued debt I had at the time. I had to lose a 10 year fixed rate at 5.1%. Still have learned the lesson now.

Welshboy, i have read your post regarding the 95% self cert with an iva and i would be interested, i am wary of mortgage lenders that would do this because a friend of mine had a subprime mortgage and it was lots of hassle. who is the lender you are talking about?

cheers

ginge

The lender I was told of today was Future, you should not be worried about these type of lenders they have the same rigid criteria to adhere to as the high street lenders in fact in some instances they are lending arms of one and the same, as long as you can afford the deal and are happy with the rate etc and all it`s varying nuances then because you may not have heard of the lender is no reason in my opinion not to pursue what your broker is suggesting.

Hi

Can I ask is there much difference in whether you have had an IVA or are discharged from Bankruptcy when looking for a mortgage.

Pippa

Hi Pippa

It does all depend on the personal circumstances of the individual and the mortgage product criteria. The length of time that the individual has been discharged from bankruptcy will also have an affect.

From a mortgage brokers point of view:

You can remortgage at any time whilst in an IVA (with the normal restrictions - e.g. permission from your IP) as long as the IVA has been carried out satisfactorily.

You can apply for a mortgage as soon as you are discharged from bankruptcy.

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/

Please read our Initial Disclosure Document(IDD): http://www.leybridge.com/Leybridge-IDD.pdf

Hi
Just regarding self cert,is it a case of putting down your income and signing to confirm or do you need an ccountant to confirm your wage.
I seem to remember having to have an accountant verify my income when taking out a self cert mortgage.
Regards


Andy Davie
IVA.co.uk Spokesperson

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IVA Helpline: 0800 197 4838
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