Self-Certify is actually due for a comeback???

Westminster

http://www.mortgagestrategy.co.uk/banned-self-cert-loans-set-for-return/?utm_source=twitterfeed&utm_medium=twitter

Discuss!

HappyMJ

It's not due for a comeback. It's a mortgage company trying to sell via an eastern european country to bypass regulated mortgages. It's going to cost much more than a UK mortgage.

I'd like to see self-cert mortgages return as I cannot borrow to buy a house to live in until they do. I do have a buy-to-let unregulated mortgage that does not require any proof of income. I rent that house out and I rent another house to live in. It's costing me 0.5% more in interest every year over a regulated mortgage and I lose 8% plus VAT every month in fees on the rent received which is equal to about 0.5% of the property value each year. Then I've got capital gains tax to pay and income tax to pay which would have been exempt had I been able to live in the house.

Thrugelmir

Nothing tangible in the statement on which to make a serious judgement. This looks more like a good PR and marketing stunt than anything else.

SailorSam

I thought you were talking about 'sick notes'

amnblog

Anyone who wants to mortgage their property to a company in Romania, Bulgaria, Moldova or wherever that is trying to skip round EU rules to make up their own, may find it ends in tears.

betmunch

I am actually pro self-cert. In the right circumstances it's a good product.

However, I will not be touching this product with a bargepole!

If they have to go to these lengths to make it available it clearly goes against what our big bosses want to achieve.

I would expect the FCA to take a very dim view of a broker recommending this product and I'm not prepared to lose my authorisation just because someone has a smart accountant

amnblog

Getting involved in this scheme Bet (which is still unproven as a concept), is equivalent to buying Bamboo Plantations with a SIPP for which we blameless brokers (and by definition our clients) are paying the price through FSCS fees.

JP08

Nothing wrong with self certification. Everything wrong with supplying false details when self certifying. The latter is fraudulent behaviour and should be punished with a jail term and sequestration of assets / funds for repayment as per any other act to obtain multiple £1000's by deception.

ACG

I personally do not agree with self cert. It gets abused, someone saying they will earn £50k next year when starting a business is crazy.

I estimated how much I would earn in my first, second and third year - every year I was out and 2 of those years I was £10k out. Instead, I just set myself a realistic target.

Also as a broker, im not sure I would touch this with a bargepole either. And if you have brokers avoiding a scheme for fear or complains, why as an individual would you want to go near it?

amnblog

ACG wrote: »

why as an individual would you want to go near it?

Plenty did to buy the property they wanted.

ACG

Thats self cert. Self cert with a foreign company finding loop holes in the system - some could say its clever, Im a little wary and would not risk my livelihood for it.

Self cert in principle is a great idea but in practice it does not work. Its completely open to abuse as im sure there are accountants and solicitors you can bung a few quid to write whatever you want on a piece of paper.