Self Cert Mortgages

[stirling]

Apparently these are going to be done away with very soon. Follow the link. With my own income multipals not being good enough to gat a mortgage with a high street lender ther is no way I will be able to re-mortgage after 4 years of my IVA so my question is what am I supposed to do?

http://money.uk.msn.com/mortgages/first ... =150186810

[Skippy]

Does your proposal state what will happen in the event that you can't remortgage? Sometimes they state that you would need to pay an extra year's contributions, but you would need to check x

[stirling]

I don't have my proposal with me at the moment, but I really don't recall anything in writing on it, though it was talked about prior to my IVA being accepted.

[Welsh Boy]

They have been talking about this 10 years ago, it is a very small part of the mortgage market and would make little difference at present.

Reading through the article, it`s factually incorrect as there are more lenders lending on a self cert basis than stated but I suppose that doesn`t make such good journalism.Tony

[Skippy]

Tony, what will happen to people already on a self cert mortgage? We have one that is fixed for 5 years - can they withdraw it or not let us remortgage when the fixed rate is up?

[stirling]

I'd like to know the answer to that one as well.

[Skippy]

The mortgage is in my OH's name due to my credit rating and he wouldn't get a 'normal' mortgage, and we wouldn't get one with me on it either...

[Michael Peoples]

They cannot withdraw your existing mortgage but you will go onto the standard variable rate which will be in the small print. Your existing lender should offer you a new deal which will be based on your mortgage payments to them and not your credit file. I know some mortgage companies are trying to get out altogether and may have penal rates for their customers and if that is the case a remortgage should be possible if there is sufficient equity.

[Cath]

I'm with Mortgage Express and they aren't offering any fixed rates at all so as far as I can gather we will have to go onto their SVR for the duration of the mortgage term, unless we can get a remortgage which is doubtful as we are both insolvent at the moment, although in years to come we should be able to.

I am assuming that they can't just withdraw our mortgage and demand repayment before the end of the term if we are up to date with payments.

[kallis3]

I wouldn't think they can Cath. If you are making your payments then they have no reason to do this.

I'm on SVR anyway, and we've had no problems with our mortgage company at all.

[Skippy]

Thanks for that Michael. We're with Abbey, so I can't see them pulling out of the market!

[Welsh Boy]

Michael is right, as long as you meet the contractual payments your lender will not have a problem with you and you will eventually end up on their svr.Tony