Self cert was 45% of home loans in 2007

avantra

I almost chalked on my cereals when I read this , never thought it went that high.
If only even a small percentage were LTL (lie to let) this is outrageous like the credit card binge but on a massive secure scale :mad: the banks really took the Michael with this one.:eek:

Graham_Devon

It doesnt surprise me to be honest. How else would people be able to buy homes. It kept the boom going for a little while longer than it should have gone on.

pickles110564

avantra wrote: »

I almost chalked on my cereals when I read this , never thought it went that high.
If only even a small percentage were LTL (lie to let) this is outrageous like the credit card binge but on a massive secure scale :mad: the banks really took the Michael with this one.:eek:

Point us to the article please so that we can read this for ourselfs.

Kavanne

grrr aaaaarg

as someone who had a genuine reason to go self cert, you make me angry! i did not lie, i have not defaulted (and I won't), and my repayments are VERY affordable.

pickles110564

Graham_Devon wrote: »

It doesnt surprise me to be honest. How else would people be able to buy homes. It kept the boom going for a little while longer than it should have gone on.

If this is true there would not have been a boom but just a steady increase with inflation.

pickles110564

Kavanne wrote: »

grrr aaaaarg

as someone who had a genuine reason to go self cert, you make me angry! i did not lie, i have not defaulted (and I won't), and my repayments are VERY affordable.

Dont get wound up with the spin they post, it just makes them feel better.

pickles110564

fatpig wrote: »

pickles, you've told more than a few porkies in your time. You must have told a whopper to get your buy-to-let mug property.

Addowney I wondered how long before you would pop up.

avantra

Kavanne wrote: »

grrr aaaaarg

as someone who had a genuine reason to go self cert, you make me angry! i did not lie, i have not defaulted (and I won't), and my repayments are VERY affordable.

I said : a 'small percentage' didn't I?!

Pennywise

Well, I'm surprised is it that low.

Just about every mortgage reference we completed for our clients (we're accountants), was self cert in 2006/2007.

What was really scary was that the banks never even asked about the client's finances at all - all they ever asked was basically how long we had acted as accountants and to confirm that the applicant was employed or self employed - there was never any questions about income or affordability.

It was nothing but a "box ticking" exercise so that the lender could say that they had a "reference" - as usual the useless and clueless regulators were just checking systems and box-ticking and not actually looking at the facts - i.e. the usual "easy life" brigade.

In fact, just thinking about it, it must be years since we've actually been asked to confirm figures of income for a reference - even since the crash, we're still not getting the same kind of detailed reference request that was the industry standard prior to the early 2000's.

I'd say the next "crisis" will be tenants. We have, likewise, seen a real "dumbing down" of reference requests for potential tenants from landlords' agents - now they're very similar - basically, do you know this person, and if so, are they employed or self employed - completely hopeless and no real information at all.

In fact, just remembered something else. Once I did a reference for a client, and the lender did have a question "any other relevant information". - There'd been so little information asked for, I decided to put in the applicant's income in that section. The lender sent it back and told me to do it again without mentioning their income - absolutely priceless.

It's no point having more regulation if the regulators are just going to go for the easy life and do nothing but "tick boxes" - they need to be of a much higher calibre to actually get stuck in and check that the right advice was given, not just that the boxes were ticked.

mewbie_2

This is how it worked, for some. Gain mortgage on back of lies told about inflated income. Borrow enough to pay mortgage for a couple of years. Do minimal tarting up. Sell property, with 20% (or more!) HPI, a very nice geared profit. Move on to next property.

House prices never fall, sure fire winner, etc. For those who stopped playing the game in 2007 a nice little earner. Unfortunately (lol), those who simply took profits and gambled more, in an ever increasing spiral of lies and debt - well we are watching this play out all over the country in repossessions and bankruptcy.

avantra

Pennywise wrote: »

Well, I'm surprised is it that low.

Just about every mortgage reference we completed for our clients (we're accountants), was self cert in 2006/2007.

What was really scary was that the banks never even asked about the client's finances at all - all they ever asked was basically how long we had acted as accountants and to confirm that the applicant was employed or self employed - there was never any questions about income or affordability.

It was nothing but a "box ticking" exercise so that the lender could say that they had a "reference" - as usual the useless and clueless regulators were just checking systems and box-ticking and not actually looking at the facts - i.e. the usual "easy life" brigade.

In fact, just thinking about it, it must be years since we've actually been asked to confirm figures of income for a reference - even since the crash, we're still not getting the same kind of detailed reference request that was the industry standard prior to the early 2000's.

I'd say the next "crisis" will be tenants. We have, likewise, seen a real "dumbing down" of reference requests for potential tenants from landlords' agents - now they're very similar - basically, do you know this person, and if so, are they employed or self employed - completely hopeless and no real information at all.

In fact, just remembered something else. Once I did a reference for a client, and the lender did have a question "any other relevant information". - There'd been so little information asked for, I decided to put in the applicant's income in that section. The lender sent it back and told me to do it again without mentioning their income - absolutely priceless.

It's no point having more regulation if the regulators are just going to go for the easy life and do nothing but "tick boxes" - they need to be of a much higher calibre to actually get stuck in and check that the right advice was given, not just that the boxes were ticked.

But than doing more than ticking boxes has some cost interlaced, gov coffers don't get any fuller lately as far as i can tell..