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Northern Rock SelfCert Rip-Off
I have recently applied for a Northern
Rock Self - Cert Mortgage as I'm self-employed. Their rates were appealing and both I and my broker were under the impression that my accounts did not need to be provided nor income proven. Northern Rock had charged me £460 for a survey which was completed within days. After the survey results came through, they started asking to see accounts etc. The initial application was for 170K, the survey valued the property at 220K + and they then reviewed the case and told me I could only get 93K!!!!
They are now telling me they can't refund the valuer's fees even though their product is marketed as self-cert with no proof of income required.
My Advisor and I feel that i have been ripped off as they were happy to take the money for the valuation before reviewing my personal income. Surley marketing a product as not requiring proof of income and then basing their loan amounts on my income is a contradiction???
I also feel there must be others in the same position and perhaps we could all start rattling cages to get these practices stopped. If the mortgage had stated that a multiplier was applied to the application then neither I or my Advisor would have applied, or spent £460.
Rock Self - Cert Mortgage as I'm self-employed. Their rates were appealing and both I and my broker were under the impression that my accounts did not need to be provided nor income proven. Northern Rock had charged me £460 for a survey which was completed within days. After the survey results came through, they started asking to see accounts etc. The initial application was for 170K, the survey valued the property at 220K + and they then reviewed the case and told me I could only get 93K!!!!
They are now telling me they can't refund the valuer's fees even though their product is marketed as self-cert with no proof of income required.
My Advisor and I feel that i have been ripped off as they were happy to take the money for the valuation before reviewing my personal income. Surley marketing a product as not requiring proof of income and then basing their loan amounts on my income is a contradiction???
I also feel there must be others in the same position and perhaps we could all start rattling cages to get these practices stopped. If the mortgage had stated that a multiplier was applied to the application then neither I or my Advisor would have applied, or spent £460.
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Comments
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As far as i am aware, Northern Rock, do not transact self certification business, they operate a "fast track" policy which means in practice they do not normally ask for proof of income if the loan is within certain criteria. Nervertheless, they reserve the right to ask for supporting documentation anytime up to completion, and believe it or not, post completion. They act in a similar way to many of the biggest names on the high street, not just the broker lenders.Unfortunately this has lead some (unexperienced) brokers and clients to believe they are a "self cert" lender
My understanding is that part of their FSA requirements, they have is to have a percentage of the applications fast tracked to be checked, Otherwise they would be classed as a self-cert lender.
Sorry not to be telling you what you would like to hear.
.I am a fee charging WoM Mortgage broker.I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:0 -
I always understood that self cert mortgages had income multiplues applied.
Im sorry that you have had a bad time, is it possible that you can use another lnder?Debt free and plan on staying that way!!!!0
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