Re: FN-FORUM: OT: Mortgages for Freelancers/Mortgages for Ltd Cos/Directors of?

date posted 4th February 2004 22:26

Joe Pritchard wrote:
> You'll probably have a higher deposit to pay with self-cert, but they don't
> require proof of earnings. despite them being used as tools to allow people
> to get mortgages well above their earnings multiples, self-cert mortgages
> were originally designed for thr self - employed.

According to my advice last week, self-cert mortgages are no longer the
blank cheque that they used to be. Although some lenders are less
stringent that others they are *all* now clamping down on people using
self-certs to get larger mortgages than they can really afford
(according to their earnings). There has been a certain amount of
turning a blind eye on people inflating their earnings in order to
borrow more. At the end of the day the best advice we were given was
that if you borrow more than you can afford and rates go up they only
person who will loose out is you. In getting a mortgage at the moment
the other gem we picked up was make sure you leave some room for
maneuver in terms of the monthly repayment. That way when rates go up
you won't have problems.

Hope all this rambling is useful, sorry if it's stuff that everyone
knows but it's all new to me and is still swimming round in my brain.

One other thing I remember is to try and avoid Mortgage Indemnity
Guarantees (MIG)...

Cheers

George

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