Self Certified Buy To Let Mortgage
Why Can't You Find A Self Certified Buy To Let Mortgage Anymore?
The problems began when the credit crunch hit. Mortgage lenders found their money to lend in the world markets: they bought and sold debts between each other internationally, and that made all the financial institutions of the world very rich. But the credit crunch stopped that because nobody trusted each other all of a sudden. Why? Because all the debts were mortgages like self certified buy to let mortgage deals and sub prime which were frankly not making money. So there was a lot of bad debts on the balance sheets of all the banks, and they had to ban lending risky mortgages like self certified buy to let mortgage deals.
And to a lender, a self certified buy to let mortgage is a risky deal. They offer you hundreds of thousands of pounds for a second home, not knowing if things go wrong whether you can afford to meet the repayments on the self certified buy to let mortgage and your first residential deal. And lots of people could not manage it - many banks around the world are now full of bad buy to let debt, a lot of which could be self certified buy to let mortgage loans.
So what can you do now if you are a self cert borrower with money to invest? You may have found it easy to invest in the past when self certified buy to let mortgage deals were bountiful, but now you do not have many places to turn - or do you?
Because there are still a lot of options out there for people with money to spend, even if they are self cert borrowers. For a start you could try taking out a prime buy to let mortgage instead of a self certified buy to let mortgage. The rate might not be quite as good as it would have been a few years ago, but if you can prove your rental income fully then there is no reason why you cannot get finance for a buy to let home. Or you could choose to reinvest your money into your own home instead of investing it in a new one. While self certified buy to let mortgage trading is on hold, overpay on your mortgage and build your equity. Or remortgage and find yourself a better deal. Or you could even offset your money in an offset mortgage account.
*In general Buy-to-Let mortgages are not regulated by the Financial Services Authority.
