Self Cert Mort Req - what to do?

samsgr

Hi
We are with Standard Life at moment on the SVR of 5.34% - they have said they are not offering any remortgage deals. ***t. We were relying on this as we can only do self cert and noone seems to be doing this now.

Are we screwed?

Wutang_2

Looks like it - no more self certs. You now have to prove your income!

_Andy_

Why do you feel you need a self-cert mortgage?

Conrad

Sam, many lenders do not check income where the loan is below 75%, however they reserve the right to check at ANY time even after completion.

I'm not for a moment suggesting you lie or anything, however one has a duty of care to ones family finances, and certainly a lot of people to take this route rather than pay well over the odds.

I even know a broker that has done this for some very well know MP's!!!!!!!!! I understand they felt the needs of thier families to have the best possible finances, was more important than thier need to follow 'the rules'. Sound familiar!

The 2 MP's in question had the income, afterall they'd been paying a higher svr, but thier total incomes were not in a format that lenders could use.

beecher2

Conrad wrote: »

I'm not for a moment suggesting you lie or anything, however one has a duty of care to ones family finances, and certainly a lot of people to take this route rather than pay well over the odds.

It does sound as if you're suggesting the OP lies about his income. There are surely other options - selling up and renting isn't the end of the world and may be more suitable for the OP. I think the rules are there for a reason, and bending them/ignoring them is at least part of the reason why the economy's in the state it is in.

VIGILANT22

beecher2 wrote: »

It does sound as if you're suggesting the OP lies about his income. There are surely other options - selling up and renting isn't the end of the world and may be more suitable for the OP. I think the rules are there for a reason, and bending them/ignoring them is at least part of the reason why the economy's in the state it is in.

I agree with you Beecher...or may I say hoping to prompt an enquiry for business!!... Conrad for an adviser your post is totally irresponsible...would you record this in a suitability letter/reasons why...people refer to this site for credibility...and I don't see your post as credible...and by the way....I hope you don't write your own ROS with the spelling "thier" in the text....


I just had to add " a health warning"!! (as Conrad failed to)...should you choose to follow the example he/she gave....and the lender chooses to check your income...the lender can recall the loan (you no longer own your house) take proceedings against you as this would be committing a fraud and could result in a criminal record.

barkingmad_3

Personally I think all mortgage lenders have a responsibility to check income... if they suffer bad debts it is the rest of us that pay for it in the end!

FraudBuster

Conrad wrote: »

Sam, many lenders do not check income where the loan is below 75%, however they reserve the right to check at ANY time even after completion.

I'm not for a moment suggesting you lie or anything, however one has a duty of care to ones family finances, and certainly a lot of people to take this route rather than pay well over the odds.

I even know a broker that has done this for some very well know MP's!!!!!!!!! I understand they felt the needs of thier families to have the best possible finances, was more important than thier need to follow 'the rules'. Sound familiar!

The 2 MP's in question had the income, afterall they'd been paying a higher svr, but thier total incomes were not in a format that lenders could use.

The FSA's Enforcement Division investigates when firms breach our rules or the provisions of the Financial Services and Markets Act 2000 (FSMA).

http://www.fsa.gov.uk/pages/Doing/Regulated/Law/index.shtml

Conrad

FraudBuster wrote: »

The FSA's Enforcement Division investigates when firms breach our rules or the provisions of the Financial Services and Markets Act 2000 (FSMA).

http://www.fsa.gov.uk/pages/Doing/Regulated/Law/index.shtml

Of course.

One day FB you or one of your loved ones will face such a dillema and you will suddenly view your puritan approach with new eyes.

Millions of people for perfectly genuine reasons cannot offer a lender a form of income proof that is acceptable to said lender.

At the same time millions of them will have an existing deal on a higher SVR, so will be safegurding thier families interests by seeking a lower rate.

Life is'nt a black and white afair.

The FSA also want clients to have the best outcomes in terms of affordability. Should a family pay 6% when 3% deals are on offer that put them in a better position?

What if the Bank statements show adequate income but the the client has 2 jobs? Most lenders will not take all of the income in that instance, so what then, just pay more and have less to sopend on your family?

Conrad

Why do you think all high street lenders offer fast tracking (no income checking) on the majority of <75% cases?

Again you must not lie about income, but there are endless reasons why people cannot provide income proof in a form acceptable to lenders.

beecher2

Conrad, you know absolutely nothing about the OP's commitments, or ability to service his loan and I do think it unprofessional in the extreme to hint that he should be less than honest about his income.

Lenders factor in risk and someone being offered 6% has something in their profile which makes it more likely that they will default. If lenders aren't willing to be flexible then campaign for that - but don't encourage people to lie, and don't hide behind the emotional 'but it is for the children' argument because that doesn't hide the fact that it is fraud, and this type of lending has a lot to do with why we're in this situation.