From: "Mark Hamptons" 
Newsgroups: uk.finance
Subject: Re: Can 'anyone' get a Self-Certify mortgage?
Date: Mon, 27 Sep 2004 21:30:31 GMT

Advice noted, thanks.  I won't go for anything that doesn't work in the 
spreadsheet.

What is the 'notable exception' you mention re the lenders using income 
multiples?

"john boyle"  wrote in message 
news:bsOvaY0JxCWBFwP7@johnboyle1.demon.co.uk...
> In message , Mark Hamptons 
>  writes
>>"john boyle"  wrote in message
>>news:Ip$7LMjCXyVBFwU5@johnboyle1.demon.co.uk...
>>> In message , Mark Hamptons
>>>  writes
>>>> essentially what SS mortgages are?
>>>
>>> No, and any way they would be 'SC' not "SS".
>>> What you are after is a loan secured on a house where the potential
>>> mortgagee doesnt ask how much you earn. Id he DID ask, then as your
>>
>>That would be 'If' not "Id".
>>
>>:D
>
> I'll have to sack that secretary!
>
>>Anyway, thanks for the feedback.  I obviously did not put enough info in
>>my post, but I can't see how I'd need £70,000 rent profit to afford a 
>>£1,000
>>PCM mortgage per year.  12 x £1k = £12,000.  That's more than covered by 
>>my
>>rentals and salary.
>
> I understand your logic here, but 'mortgage lenders', with one noteable 
> exception, calculate their maximum loan as a multiple of income. This 
> typically starts at 3 times income but most lenders will lend more than 
> that. So £300k/3 = £100k. You have a salary of £23k, so £100k-£23k = £77k.
>
> Banks will lend on commercial terms on an 'affordability' basis, and this 
> appears to be unaffordable as well. Your £1k per month suggest an interest 
> only mortgage at 4% which is very optimistic for a self cert and almost 
> impossible with a 'no questions asked' loan.. In reality the interest will 
> be higher and a bank would be looking to get 2 or 3% over base = 7.75% 
> possibly = £1937 per month.
>
>
>>Anyway, I will indeed see and IFA, and I also have a good spreadsheet so I
>>can work out my actual budget, allowing for void periods too.
>>
>>I came here just to ask about SC mortgages, and I now have the answers so
>>thanks.
>
> Best of luck, but I am very, very anxious that you are going to get into 
> deep water here. Dont take this the wrong way but I have seen more bad 
> debts than you will earn in a lifetime and this has all the ingredients of 
> another. Please be careful.
> -- 
> John Boyle