No more Liar Loans

Doctor_Gloom

This will undoubtedly cause house prices to fall even further if prospective buyers cannot lie about their income any more.

http://news.bbc.co.uk/1/hi/business/10606475.stm


"It also wants mortgage customers to verify their income levels.

This proposal could mark the end of self-certification mortgages, where borrowers simply state their income without having to prove it."

Exocet

Whoops. J C Flowers may want to review their 'business model'.

Dirk_Rambo

alot of people round my way told big lies to get big mortgauges to buy houses a few years back.. i tihnk alot of them regret it now

Dick_Rambo

round my way prices have droped 20% today.

and thanks to mr english for advising me to buy silver and gold. i invested last week and am minted now

StevieJ

Should be interesting, I thought those loans were brought in to satisfy the needs of the Tory small business community, I await the next development with interest.

Graham_Devon

Would this mean though that someone who chooses to go down the self employed route, would simply not be able to get a mortgage until they have at least 3 years books?

Or is there going to be some sort of leeway here?

Self Cert mortgages, for those who used them correctly, and needed them because of their self employed status were brilliant. There will have been many who did use them for the purpose intended.

StevieJ

Didn't take long

torontoboy45

Graham_Devon wrote: »

Would this mean though that someone who chooses to go down the self employed route, would simply not be able to get a mortgage until they have at least 3 years books?

Or is there going to be some sort of leeway here?

Self Cert mortgages, for those who used them correctly, and needed them because of their self employed status were brilliant. There will have been many who did use them for the purpose intended.

'a ban on lending without proof of income'.
so it appears that SC mortgage market may revert to its original purpose (i.e 3yrs books / accountant verification).

a good thing, too.

I'd be interested in knowing what %age of the market is taken by self-cert and if there's any way of separating the genuine from the lying.

chucky

torontoboy45 wrote: »

'a ban on lending without proof of income'.
so it appears that SC mortgage market may revert to its original purpose (i.e 3yrs books / accountant verification).

a good thing, too.

I'd be interested in knowing what %age of the market is taken by self-cert and if there's any way of separating the genuine from the lying.

the article is a bit ambiguous and not to clear though

there's a difference between a self-cert mortgage and a mortgage that hasn't had income verified. the latter are usually 'fast-track' mortgages for people with decent credit scores.

they are two different things and probably have some dubious issues around them.

how many are fraudulent would be impossible to tell i think.

Graham_Devon

chucky wrote: »

the article is a bit ambiguous and not to clear though

there's a difference between a self-cert mortgage and a mortgage that hasn't had income verified. the latter are usually 'fast-track' mortgages for people with decent credit scores.

they are two different things and probably have some dubious issues around them.

how many are fraudulent would be impossible to tell i think.

The article states that (if it happened) self cert would be banned AND income would have to be verified. So two different things talked about.

Which kind of suggests your fast track mortgages would be gone too.

Which would leave those who are self employed without 3 years books with absolutely no way to get a mortgage? Which seems a little harsh in some cases.

chucky

Graham_Devon wrote: »

The article states that (if it happened) self cert would be banned AND income would have to be verified.

Which kind of suggests your fast track mortgages would be gone too.

Which would leave those who are self employed without 3 years books with absolutely no way to get a mortgage? Which seems a little harsh in some cases.

no argument with self-employed - it's going to be painful for some and not sure if it's fair...

not sure about your fast-track comment - because you can be employed (not self-employed) and not have to have to prove your income through this 'fast-track' method. that's if you have a good/high credit score. it's happened to me with the halifax.