First Time Buy - Mortgage help

stanmoresaver

herbiesjp wrote:

You tell me what a money launderer looks like, and tell me you can spot one then you are better than me.?

Fair play- but i am not trying to

herbiesjp wrote:

What I'm trying to get at here, is that as advisers we have so many rules and regulation we don't know where to turn for risk of bumping into another one. If we turned a blind eye, we could get sent to prsion (wosrt case scenario)?

Very true about the rules and regulation, I still don't think that the AML rules cover the frauduylant act of overstaing an income

herbiesjp wrote:

Here we have a poster that knows of cases where things are not 100% right, but says will do nothing about it.?

Not sure this is correct- Other than the broker- IMHO it is the fault of the lending institution accepting employed self cert apps on the basis that the broker will be held responsible for the due care and attention surrounding affordabilty. they are happy to take the profit from the deals on the basis that there is a 10-15% margin before they stand to lose anything.



sorry about typo!

meanmachine_2

It's the FSA who have chosen to do nothing about it.

According to them there is no fraud going on.

Given that self-certs make up 1/3 of all new mortgages, clearly something is going on.

But then, with lenders like Northern Rock openly lending six times someone's wage, I think the whole industry stinks anyway.

meanmachine_2

herbiesjp wrote:

@Meanmachine - by doing nothing are you not as culpable as those commiting the action? I'm not worried if interest rates go up and they get unstuck, I'm more worried by the fact that it is fraud.

Please tell me you're not being serious!!!

Unless I'm witness to this action, then how am I in any way culpable?!

All I know is that friends and work colleagues have bought houses that seem well beyond their means.

How they procured these loans is between them and the broker and the lender.

I suppose because I see the US army invading foreign countries I'm responsible for that too?!!!!

It's the brokers/lenders who need to clean up their act, not responsible people like me!!

Again, I put it to you, how are average house prices NINE TIMES the average wage, if certain brokers out there aren't helping borrowers "stretch" their money?

To throw the focus back onto the brokers: Are customers not coming to you increasingly looking for ways to make their *ahem* money go further? In another thread I asked what a broker was for. Isn't that one part of your job? At least in the eyes of some of your customers?

Serious question.

payless

We all know that there are a number of dodgy self certs going on ( what precentage I don't know... ) , some will be by fly-by-night brokers who have no care about saying in this market, or by commission hungry / target driven employees of " salesforces"

Unfortunately suppose it will be those of us that are more prudent in the way we conduct our businesses that end up paying for it in regulatory/ fscs fees

BTW ... one of the reasons I don't post here as often as I used to,was to lower my profile , as I was suddenly getting lots of calls for people asking for self certs ( that I was not prepared to do)

To throw the focus back onto the brokers: Are customers not coming to you increasingly looking for ways to make their *ahem* money go further? In another thread I asked what a broker was for. Isn't that one part of your job? At least in the eyes of some of your customers?

As well as advising on / sourcing suitable rates , we can find lenders with more flexible approach to clients circumstances - which in some cases may well be those that lend more than others... but based on facts not lies

meanmachine_2

Thank you payless for an honest answer.

I suspect I get a very twisted view of brokers on here because those who take the trouble to post and give freely of their time are naturally going to be more responsible/professional.

That's a rare compliment to herbie, andrew etc by the way!!

stanmoresaver

payless wrote:

BTW ... one of the reasons I don't post here as often as I used to,was to lower my profile , as I was suddenly getting lots of calls for people asking for self certs ( that I was not prepared to do.

Nothing to do with the additional compliance reporting then..

payless

stanmoresaver wrote:

Nothing to do with the additional compliance reporting then..

being directly authorised there is no additional compliance reporting

AndrewSmith

Compliment humbly accepted MeanMachine.

herbiesjp

meanmachine wrote:

All I know is that friends and work colleagues have bought houses that seem well beyond their means.

It's the brokers/lenders who need to clean up their act, not responsible people like me!!

Again, I put it to you, how are average house prices NINE TIMES the average wage, if certain brokers out there aren't helping borrowers "stretch" their money?

.

@Meanmachine

Self certs have income multiples like status loans - if your friends are getting silly loans agreed against the wage figure you know about then something does not add up - but remeber lender can accpet various other income sources for self cert schemes, We don't know the details, but we are all speculating on the abuse of the scheme.

Indeed it is up to the rogue lenders/advisers to clean up their act or get booted out.

This is exactly why this forum is so powerful - hopefully our discussion here willopen the eyes to some people and make them question what they are being offered.

Hopefully by reading what I, Andrew, payless et al might say we are educating the readers as to what is acceptable.

As posted previously, and backed up by payless, knwoing how lenders work and their flexibility can sometime allow you to get the loan agreed by other legal means - always being mindful of affordability for the client

And thanks for the compliment

meanmachine_2

Indeed, what I have learnt from this particular part of the site is that a good broker is able to get a seemingly non-standard borrower a standard loan.

But as you no doubt know, many punters think that they don't qualify, so are paying higher self-cert rates.

That's an observation, not a verifiable fact by the way, before you ask me for particulars.