New Mortgages

Open To First Time Buyers or Existing Property Owners
We treat first time buyers in exactly the same way as we do those who already have a property. There is no difference in the rates we charge or the chance of the application being accepted. For us, it is all about the risk. Applicants having previous properties doesn't - in our opinion - have a bearing on that risk.

The New Mortgage option would suit those who want to use the mortgage to obtain a property they do not yet own.
Mortgages on Properties Up To £500,000
We have a ceiling of £500,000 on our mortgage products. This gives us the ability to lend on over 98% of properties in the UK whilst at the same time limiting our exposure.
Pre Approval Possible
We know that people want to be able to know they have funding arranged before they get their hearts set on that new property. In these cases we are more than happy to give a decision in principle.

Of course tany approval would be dependent on the property being worth around the same as the application and the Loan to Value being similar.


Why Remortgage?
From what we are witnessing, most people want to remortgage in order to leave their current provider. Most are on mortgages that were suitable 10 years ago, but now substantially higher APR's than alternatives on the market.

In these cases we are happy to listen to the customers requirements. Some just want us to pay off their existing mortgages, some want us to pay off the existing mortgage and get a lump sum at the same time.

We are happy to look at any proposal that customers bring forward so long as the Loan to Value doesn't exceed our upper limit of 85%.
Rates at 2% Above Bank of England
We have just one rate (whether ot not it is a new mortgage or a remortgage). The lifetime of the mortgage would be 2% above the base rate.

Buy to Let Self Cert's

We Don't Offer These
In our opinion these were a genuine reason behind parts of the crash in 2008. A lot of people were building up property portfolio's on paper. They were using one property to leverage funding on another. The whole market was a house of cards.

From the data we have seen, the people that did get hurt by Self Cert funding, were those who were using them to buy houses to rent them out.

It isn't that we are taking a moral stand or commenting on the rights and wrongs of this. It is more that we don't want to put our capital into this more risky part of the property market.
Why are these so risky?
The difference between residensial "Self Certs" and "Buy to Let" Self Cert's is significant.

If things take a negative turn in the economy, a person will often do all they can to keep the roof over their head. That is good from a lenders point of view because even if people go into negative equity - they still tend to make repayments to keep the home that they have fallen in love with over the years. If houses prices do fall, they tend to stay in their properties until prices stabalise.

The issue with Buy to Let's is that people often have no emotional attachment to the properties. There is a much higher chance of things going wrong with the properties due to tenants damaging them, Government benefit cut backs etc. If house prices fall for these buyers, they fall across x number of properties and their ability to respond is deminished. Often they don't have a choice to ride out property dips because their income will also fall from a drop in rental income.

From our point of view, it is much easier for things to go wrong compared to the residential market where the borrower has more control.
Will We Offer These In The Future
No, 100% never. This isn't an attractive market to us, the risks to us and the borrower are very high.

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Self Cert is not based in the UK. We are NOT regulated by the Financial Conduct Authority

Prague 1, Czech Rep