Self Certification Mortgages for the self employed

[bizzylizzy]

Does anyone know of a sympathetic lender who might give me a mortgage. I have worked for myself as a designer for 20 years and have accounts going back that far. Trouble is two years ago I took a sabbatical to write a couple of books. I used the capital from the house I sold to fund this break. I have now resumed my former business but, the problem, my accounts for the last two years make grim reading. Because, of course, my accountant has quite rightly given me the best tax break possible. I've been told the only way I'll get another Mortgage is to Self Certify. But I've also been told that there are a lot of dodgy deals out there. Does anyone know of a good lender I can approach. I will have a pretty substantial deposit to put down. By the way, I've also been told that the more lenders that are approached the less likely you are to get a Mortgage, is this true. Something about leaving a footprint on your credit status record. Thanks very much. BizzyLizzy

[BadBob]

Don't know a great deal about self-cert Mortgages but I think even the main lenders do they. Just make sure you know what your getting yourself into as they make their money on higher fees and rates. As far as leaving a mark on your credit rating, I have never heard of such a thing, I would assume that would only be an issue if you were refused by lots of lenders rather than if you talk to lots of lenders. Best bet is go to 2 different Independant Mortgage brokers who essentially have all the mortgages avaliable in the UK at their finger tips. They could search each one and give good advice, they normally work on Life Assurance commision so the advice they give is free.

[lowrie333]

I agree with BadBob. I am constantly changing my mortgage so as to get the best deal, and wouldnt do this without my financial advisor (sound awlful doesnt it!). If you go to www.unbiased.co.uk you can get a list of all the advisors local to you that will offer you a free consultation. Their services are normally free after this initial advise as well, as the advisor recieves a comission payment direct from which ever lender you choose to go with. As for leaving footprints, i dont think this is right at all. You only leave footprints when you are refused credit, and then it is only if that particular lender decides to report it - it isnt something automatic. Hope this helps.

[bizzylizzy]

Thanks for taking the time to reply guys. I did go to a broker who said that they dealt with hundreds of Banks Building Society's etc but reckoned that only two would give us a mortgage, and I hadn't heard of either of them. And, we would also be asked to pay a finders fee to the consultant before proceeding. I'm glad to see that you don't consider it wrong to approach more than one financial advisor. The info about too credit searches against your name leaving an adverse credit rating actually came from a Mortgage magazine I believe. thanks again. Bizzylizzy

[BenDToy]

In general I agree with most sentiments from BadBob and lowrie333 however all searches on your credit file are definitely recorded - I have a copy of mine and I can confirm that they show up for 2 years. Don't know what impact this has though. I have a self cert mortgage with a major lender (the biggest I think), and the only requirement is sufficient deposit. I would say at least 25% to get a mainstream lender to lend on "normal" terms. Consult a mortgage broker who should not charge a fee for his services. He will find the product and sort it all out for you. Don't try to do it on your own. If you are not sure how to find one, talk to estate agents - they will point you to someone.