Short term self-cert mortgage?

handytips

Just had one around my way struck off by the FSA For doing exactly this.
As a broker myself this sort of behaviour makes me sick. Dont get me wrong, i think there is probably still a need for sensible self cert, and i am no great fan of the FSA. However if you are a DA or an AR you still have to have proof of income on file, whether or not the case gets Fast Tracked or you have a PAML with a lender, even if a client goes direct to their bank the same rule applies. It will only be a matter of time before these people who break the rules/law are found out. It saddens me that the honest brokers out there are still up against Chancers. Lastly i wonder what part of the country most of these people work in...guess..the London area perhaps

Antispam

frankythomas :spam:

kingstreet

http://www.mortgagestrategy.co.uk/1033291.article?cmpid=MSE01&cmptype=newsletter&email=true

The Financial Services Authority says brokers are using buy-to-let and let-to-buy mortgages for self-cert customers who would not qualify for a residential mortgage.

In its latest Mortgage Lenders’ Round-up newsletter, David Geale, manager of retail intermediaries and the mortgage sector at the FSA, says lenders offering buy-to-let and let-to-buy products need to ensure that their systems and controls cannot be gamed by intermediaries.

He says: “We are aware that some buy-to-let and let-to-buy mortgage products are being used by intermediaries to circumvent the more stringent income and affordability checks now undertaken on residential regulated mortgages.

“This is particularly the case where lenders are offering buy-to-let products to first-time buyers and where the affordability test is based on projected rental income only.

“We believe lenders with weak systems and controls are more likely to be exploited by intermediaries still looking for self-cert mortgages.”

Perhaps our friends at Canary Wharf aren't asleep after all! Cue a "buy while stocks last" campaign at TMW.