Is it still possible to get a Self Cert mortgage?

busybird

Well he had all of our info but perhaps like us, with such a large amount of equity, there was going to be very little risk for a lender. If the house was ever repossessed there would be a zero chance of burned fingers there. I expect I am looking at it from a common sense point of view and it really doesn't make sense to me. I guess we will be better off just sitting tight and waiting for a sale, which all being well will render us mortgage free.

Conrad

holly_hobby wrote: »

Unfortunately, the introduction of the above, plus the explosion in the housing market and prices, fulled the increased useage and explotation of this facility - and largely landed us where we are today

Holly, to be clear the statics reveal the UK market was and is very ordered, with less than 0.3% repossessions and even lower for self cert which is down to the fact clients tended to input bigger deposits.

We have to dispell this urban myth that the credit crunch as it's roots in British self cert.

The reason self cert has largely gone is nothing to do with lenders, and everything to do with the FSA's 'Treating Customers Fairly' rules.

In fact they treat people very unfairly as millions now have no option but to rent, despite the central point that a tiny minority of SC mortgage holders end up repossessed.

Classic top down regulation by white middle class Henriettas who haven't the first clue as to the real misery inflected by them on millions of hitherto perfectly capable adult borrowers.

Sure armies of plasterers and van drivers could double thier Tax bills but it wont happen. If such people were to pay more Tax, consumers would foot the bill - you know all those mse types that want cheap everything. Consumers wont ware such an increase.

busybird

Conrad wrote: »

In fact they treat people very unfairly as millions now have no option but to rent, despite the central point that a tiny minority of SC mortgage holders end up repossessed.

Classic top down regulation by white middle class Henriettas who haven't the first clue as to the real misery inflected by them on millions of hitherto perfectly capable adult borrowers.

Sure armies of plasterers and van drivers could double thier Tax bills but it wont happen. If such people were to pay more Tax, consumers would foot the bill - you know all those mse types that want cheap everything. Consumers wont ware such an increase.

This is our situation exactly - we have kept our prices static for approx the last eight years - purely to remain competitive and to keep work coming in. This is at the same time, contending with greatly increased fuel prices; compulsory regulatory update courses to be able to work legally within the construction industry (gas work) so it stands to reason that our overall profit shown would be on the decline. We consider ourselves to be amongst the 'perfectly capable adult borrowers' but are sadly not recognised as such.

geoffky

dunstonh wrote: »

Evidence please? Seeing as most IFAs don't actually give mortgage advice I would like to see what evidence you have to suggest it was positively encouraged.

Even mortgage advisers, who do give mortgage advice (funnily enough) would not have seen the majority do such a thing. Yes a small minority did but it takes two to tango. Plus, the lenders knew it as well.

evidence........

During 2003 The Money Programme of the BBC in the UK uncovered systemic mortgage fraud throughout HBOS. The Money Programme found that during the investigation brokers advised the undercover researchers to lie on applications for self-certified mortgages from, among others, The Royal Bank of Scotland, The Mortgage Business and Birmingham Midshires Building Society.[5]


http://en.wikipedia.org/wiki/Mortgage_fraud



brokers made fortunes during the liar loans period...And everyone knew the letters and wage slips were downloaded from the Internet...its was the biggest con and alot of people got very rich from it.

handytips

I love that comment above 'Brokers made fortunes' another mis guided soul who thinks we all earn money from doing very little. It makes me laugh it really does.

GMS

geoffky wrote: »

brokers made fortunes during the liar loans period...And everyone knew the letters and wage slips were downloaded from the Internet...its was the biggest con and alot of people got very rich from it.

Why would a 'liar loan' which seems to be the accepted term for a self cert mortgage require payslips? Self cert didnt require any proof.

dunstonh

evidence........

During 2003 The Money Programme of the BBC in the UK uncovered systemic mortgage fraud throughout HBOS. The Money Programme found that during the investigation brokers advised the undercover researchers to lie on applications for self-certified mortgages from, among others, The Royal Bank of Scotland, The Mortgage Business and Birmingham Midshires Building Society.[5]


http://en.wikipedia.org/wiki/Mortgage_fraud

First of all it says brokers not IFAs. Secondly it was 2003 and pre-regulation and no indication of widespread abuse. I have already said it was things like this that helped give the term "Liar loan" to self cert but I also said it takes two to tango.

Before regulation, the perception was that you used a broker to do anything in their power to get a mortgage. Post regulation, that changed.