i earn 20k and looking to purchase a Property of 140k, by self certificating will I be able to qualify for this amount.
Do I have to show bank statements?
2006-12-05 04:30:56 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
As an independant mortgage adviser, i would suggest that you do seek advice from a professional. Ask family or friends if they have ever used an adviser that they feel comfortable in recommending to you.
DONT be put off by fees! as long as they are reasonable, it needs to be understood that the commission earned on recommending a mortgage isn't a great deal - mortgage advisers aren't the enemy! Fees are charged by all professional involved in the mortgage process; if you're offered extra value be prepared to pay extra fees.
If going for a self cert mort, just be aware that if you 'inflate' your income, you could be tantra-mount to fraud. The least deposit you'll need is 10%, but remember the other fee's that are associated - legal fees, stamp duty, valuation fees and possible arrangement fees.
Hope this helps :)
2006-12-07 20:26:25 · answer #1 · answered by trick 2 · 0⤊ 0⤋
I think what has caused the confusion here is that you are in the UK, I think a couple of people have thought you were in the US
Self Cert Mortgages are designed for people who are self employed or take occassional work, they enable you to borrow money without proving your income
Normally you are required to put down a minimum of 20% deposit, so you would only be allowed to purchase a property up to 100k
But check this with an INDEPENDANT mortgage advisor, make sure you choose an independant and make sure they dont charge a fee for their advice
2006-12-06 09:15:06 · answer #2 · answered by Boyd 1 · 0⤊ 0⤋
That's self certificate are first time buyers program. Yes, you do have to show bank statement, paycheck stub, w-2s, etc! It's a full doc loan with PMI! The "self-ceritificate" is a homebuyers study course you take online required by the PMI company in order for them insure the loan.
I would a side-by-side loan comparison. You shuld know the difference in payment from 100% with PMI or 80/20. FYI, PMI payments is a mortgage insurance...it protects only the lender, incase you default on you loan. Needless to say, any PMI payments you make does not get applied towards your mortgage. Let your broker do the work! Have him present to you at 5 different loan programs!!!!
2006-12-05 12:37:36 · answer #3 · answered by ALEGNA 3 · 0⤊ 0⤋
You do not need to provide proof of income with a real self certification mortgage. You will however, pay a higher interest rate, but make sure you CAN afford the payments.
2006-12-08 16:22:52 · answer #4 · answered by Linda 6 · 0⤊ 0⤋
I just took out a self cert mortgage, I earn 15k and have a £100k mortgage. no bank statements or wage slips, all I had to show was my passport!
2006-12-05 12:39:33 · answer #5 · answered by Megan xxx 3 · 0⤊ 0⤋
I assume that you are in the UK. The lender doesn't check on earnings. However, interest rates are often a little higher than standard, to reflect the obviously greater risk to the lender, and a more substantial deposit is often required.
2006-12-05 12:42:18 · answer #6 · answered by andrew f 4 · 0⤊ 0⤋