Ask the experts
About our experts...
At John Charcol, we are constantly asked for advice by borrowers on what they should do when it comes to mortgages. As such, we created this section so that you can submit your questions to our experts. The answers are provided by a number of people who have years of experience in the mortgage market. The team is led by Peter Woodward who spent his formative years as an underwriter with one of the major UK lenders and the last 10 years in our Technical Department along side Ray.
So please do submit your question and we will do all we can to answer it as quickly as possible
Please be aware that these answers can only be generic and no personal recommendations can be made.
Posted on 25/03/2010
my property is for sale and i wish to buy another property (no chain either side) mine is on the market for £400,000 and the new property is £455,000...i have a total of £37,000 debt including my mortgage (£24000) and I am paying £2,500 per month against all of this....I wish to borrow £165,000 in total, including my existing debt which should be greatly reduced by the time the transaction goes through but my income is from different self employed sources...could i self cert or would this cost loads...i had thought of trying to keep both and do 1 as buy to let but not sure whether this would be viable....credit history A1.
Categories: Let-to-buy, Self-certification
Posted on 05/09/2009
My partner is a day trader, and therefore is self-employed, but cant prove income in the form of payslips or 3 years accounts, but has bank statements that show money going into the accounts from his spreadbetting accounts and also hold 100,000 of sterling in forex. What type of mortgage can we get? Self-cert, 100%+ (as we dont have substantial deposit).
Lastly would lenders take into account Disability Living Allowance, Careers Allowance, Child Tax Credit & Child Benefit (coming in at just over 800 per month)
What options do we have?
Sara
Sara,
Many lenders only require 2 years accounts and so if your partner has been trading for 2 years and gets his accounts done that should enable you to get a normal mortgage, but you would have to put down a deposit of at least 10%. The only alternatives would be either a self certification mortgage, for which you need a minimum deposit of 20%, but to get a reasonable interest rate 25%, or a guarantor mortgage. Normally the guarantor would have to be one of either you or your partner’s parents and they would have to be able to prove adequate income to support both your mortgage and any mortgage they had. A self cert mortgage would be the most expensive of these options, as well as requiring the biggest deposit.
Some lenders will take into account some social security benefits, a key factor being whether they are short or long term benefits. I am not familiar with a careers allowance but this sounds short term and so probably would not be taken into account but the others possibly could be. If you would like more specific advice please call one of our consultants on 0800 71 81 91
Categories: Guaranteeing & buying with child, Self-certification
Posted on 06/02/2009
I have a property worth 140-150k.
I wish to buy a second property which needs renovated for 140k let to buy seems the right way but how do i raise the capital for self cert deposit now as i think the property will sell soon
From the limited information available your proposal only looks feasible if you have little or no mortgage on the existing property. Self cert mortgages are still available but the maximum loan to value would be 75%.
Categories: Let-to-buy, Raising capital out of property, Remortgaging, Self-certification
Posted on 07/03/2008
We own 50% of a flat worth £320k (ie £160K) and our mortgage is £60K. We'd like to sell the flat and buy a property worth £380k but I'm currently taking a year off work to study. I'm earning just £18K until September when I return to work and my salary reverts to £70K. My wife earns £30K and we have no other debts. The problem is we'd like to move before September as we have a baby coming in the Autumn. Would it possible for me to prove all this and obtain the mortgage now? Or perhaps I could get a self-certified mortgage?
Categories: Self-certification
Posted on 29/10/2007
I want to buy a flat for my son. He is a student with no real income so I would act as Guarantor. I run a business which had a good year last year but sales 2007 to date are down making me think a self cert is best. Whats the best LTV I can hope to get on one of those under current underwriting conditions - is 95% achievable on a new build flat in London valued around £245k ? Is it also possible to avoid punitive ERC`s on that type of product or am I expecting too much?
Categories: Self-certification
Posted on 01/10/2007
Please can you give me some info on Mortgages for the Self Employed, my husband has recently set up his own business, 9 months ago and we currently have a mortgage that was secured with his previous job, if we were to move in the future how long would he have to have been self employed for before we'd be considered and what rates/ratios would we be looking at for borrowing. We currently own two thirds of our home and would probably be looking at a similar figure. I also work part time and earn around £12000 pa, any info would be appreciated.
Categories: Self-certification, The application process explained
Posted on 17/09/2007
I would like to remortgage my house, it is worth £175,000 and I would like to borrow £150,000. My husband and I have separated. He doesn't want anything from the house but has left some debt that's in my name. I have 3 children, one who is 18 and pays rent. I only work part time and I cannot prove some of my income? I have been paying mortgage payments of around £1000 but would like these to be reduced so I can afford to stay in my home. Any tips?
Categories: Self-certification
Posted on 03/08/2007
I need to borrow some money roughly, £10,000 to do some home improvements on my property that i own outright (value around £190,000). I am 48 so not sure if i should take out a secured or unsecured loan as I'm on a...
Categories: Remortgaging, Secured loans, Self-certification
Posted on 03/08/2007
Hi Katie
At present my mortage is with B&B and it is for £110K, I recently had a walk through valuation and was told it was worth between £450 and £500K. I would like to raise another £90K but for reasons that I...
Categories: Remortgaging, Self-certification, Valuations, Freehold, leases & unusual property
Posted on 20/07/2007
My husband has a trust deed that we want to split up as he says that I can keep the house. That means i would have to find a mortgage in my name only - can this be done with him having the trust deed? I want to stay in...
Categories: Self-certification, Trusts
Posted on 11/07/2007
My husband and I are currently splitting up and about to sell the house. I work part time and have one main job and two casual jobs. A friend told me about the self-certification mortgage. Could you tell me how this morgage...
Categories: Self-certification
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.