Self Certification for Self Employed Income

Posted on 25 March 2010 by beverley martin


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.

Beverley

One of the biggest casualties in the mortgage shake up since the credit crunch began has been self certification mortgages. Whereas these were once priced at near prime mortgage rates, they are now all but extinct.

The good news for you is there are plenty of lenders around who will individually underwrite an application and who are used to assessing income from a variety of mortgages. Ally this with your credit rating and the large amount of equity you are able to put into the purchase and I am sure that an independent mortgage broker would be able to find you a mortgage at a competitive rate.

Whether or not it is viable to keep your existing property will depend very much on it's location and the amount of rent that you can command on a monthly basis. Buy to Let mortgages have also been a victim of the credit crunch, but there are still plenty of deals available. I recommend that you speak to an independent mortgage broker about this at the same time as your residential mortgage.

Peter

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