please can someone break it down for me

i have googled and get the bit on that you yourself agree that you can afford

please can someone give me a list of plus and minuses

LadyDay wrote: A Self-Cert Mortgage is a mortgage where no proof of income is required. The lenders are saying, "If you borrow less than 75% of the purchase price for e.g., we feel that your deposit is a big enough security for us to take a risk on not requiring to see your payslips or accounts if you'res/employed". They do still however ask that you declare what your income is on the application. The income declared must still match the lending criteria even though you are not proving it.

Good if you earn cash in hand money but I think the interest rates are higher.

These are useful for brothas keeping a money monkey babymother and/or the CSA off your scent LOL.

Saying that, I know people who have obtained mortgages from fraudulent financial advisors. You end up with a mortgage you can't afford but worse case you get a property you can rent or part rent to bring in the balance you can't afford.

Incog, Interest rates are normally the same for self certs. You are technically viewed with some lenders as less of a risk because SC normally come with higher deposit criteria.

Yes crooked Brokers up and down the country use this type of mortgage to obtain funds for people who otherwise wouldnt be able to qualify. Simply by inflating the clients income to match the criteria. It is mortgage fraud nevertheless and one needs to be aware that if caught out, either the broker will be responsible for the lie or the client. This can happen for example if the accessors when checking your application find adverse credit or undisclosed committments on your credit file. At this point they reserve the right to request proof of your income as your credit rating has thrown you slightly outside of the criteria. They may also as another checking measure, put in a call to your employers to check your story about income etc. Obviouslyif you've lied the stories wont match unless you haveanticipated the callsomehow with someoneschooled on giving the correct answers. Some ultra dodgy characters submitt fradualent payslips at this stage as well and end up incriminating themselves when further checks are done. Some get away with it too...

A few years back there was a big documentary on it and since then a few lenders tightened up their procedures. Maybe that was just to please regulators. The bottom line is banks are in the business of lending you money and they never make their criteria too difficult to obtain. Abbey National have recently led the way in being THE most irresponsible lender by lending the most money per your income. Northern Rock are worse imo but they dress it up differently so its not publicly obvious that they willlend huge amounts per your income.

Years ago banks used to lend 3 times your single income. Then we had the house price explosion, so the banks increasedthis multiple to 4 times and in Abbeys case five times your single income. Just so this matches the purchase prices of homes and means they hit their lending targets. However the issue is affordability. If houses prices have increased and wages havent followed respectively, then the gap on affordability widens.

For this reason i reckon we are potentially sitting on one of the worse recessions EVER. If interst rates keep rising then the amount of people who have borrowed mortgage amounts unproportionately to their incomes will become evident. Put that together with the high balances at present on credit cards, and you can see that the carnage willbe epic. The only saving grace is that people have more equity in their homes now than they ever did, so remortgaging or downsizing could save some if this were ever the case.

We need another few years of stagnant house pricesto allow the elements to replenish themselves. Not happening at themoment though.

Le Moor wrote: Le Moor makes some very valid points. I underline those two because they are often overlooked by the average punter in his/her rush to 'own' property. The net result often being that people get in over their head where evena slight change in your'regular income' circumstances (e.g. a below inflation cost of living rise, or no cost of living rise at all) can mean that you find yourself struggling to pay your 'relatively-easy-to-acquire' mortgage.

At the end of the day the mortgage company has the security of an asset that can be taken away from you and sold to recoup their money.

Companies in the business of lending have a way of making it all seem like a walk in the park to get on the 'house ownership' ladder. But for a financial commitment that ties you up for around a quarter of your life, taking a long look before you leap is advice worth following.

Respect

that makes it a lot more clearer.

i would get a mortgage anyway i can but dont want to over commit

this is all part of my research

Le Moor, bingo! This is the same kind of thing I was trying to explain to Incognito. Whereas when the building society was able to verify my credentials with my employers, what was the broker doing with the ex'scredentials re verification. R u telling me that the broker and he was in cohoots! Then I really and truly am stuffed. As it was my employers that provided the funds, on my behalf, to purchase the property, what problems will this bring to me.If I lodged a complaint with a soliciitor what would be the implications for me? I am beginning to remember places and things too. Am I holding onto something that is worthless to my children in the long run?I really believe that sometimes you have to let people know that"money is the root of all evil' and when you get greedy you get nowt! This man must have seen me coming a long way off. I dont believe I cannot rectify this situation. Is tthere mo redress for situations such as these. If the building society themselves receive notification of a possible fraud would they investigate etc. What happens to the mortgagees etcI am beginnig to feel quite sick about this whole situation.

Yep, had a friend who had this fraudulent independant financial advisor and to be honest in the game they are all at it. I remember whenI needed a mortgage and thought I'd take up his ex friends route just to keep it in the family more than anything else. I tell you the advisor was so suspicious of me he thought I was trying to shop him. He was used to having to inflate mortgages by some serious amount where with me I was borderline...he kept saying I wouldn't have any trouble getting the mortgage I need on the high road so why am I coming to him...again tried to explain that if he's a friemnd of my friend then he's mine too. In the end it was clear the mna was an a$$hole.....so I just got my mortgage from my own advisor I'd been with for 10 years.

Myjoy - at the end of the day, if you have a one to one relationship with your lender then they should tell you all of the risks but that isn't the case...as said many of these legal teams see you coming a mile of. I remember growing up and every second Thursday the insurance man would come to my house and my mum would pay her dues. She must have been doing that for over 25 years. She went to cash it all in and it's pure hard luck stories.

A report last week on critical illness insurance and how many people have their claims rejected after years of paying into it. Current trends suggest that as a percentage there are millions of people with policies who will not get paid out when that time comes.

There is only one reason these people lend you money, to make money. And when it comes to insurance there is only one reason why they take your money...to make money. These people are not your friends...you need to have your wits about you.
Just look at the endowment fiasco. The individuals involved know byu the time it catches up with them they'd have made their money long time.

One thing I would suggest is beware a broker whocharges extortionate fees.

When I first used my broker, he charged me £250. Since then he's not charged me anything at all.

What I didn't know until my last mortgage was that you pay the brokers, but they also get paid handsomely by the loan company. I think that's a rip-off and refuse to use any other broker.

Incognito - You havnt said what to do. Should I cut my losses and run or should I fight on as a principle.

Any one else! What to do?

I didnt cheat the system, so why should I lose out because of someone else's greed.

Le Moor - Whats your take?

Myjoy - have you sought legal advice yet? Find out what the worse case scenario is and make a decision from there. It might be a case where you could lose your home...and fork out money in legal fees to pay for that 'privilege'.

My Joy,

I don't understand your question. From what I gather from your other thread you bought the property over 10 years ago, and your ex over-inflated his earnings on the adviceof the broker.