Brokers can boost confidence if they do the job properly
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A significant number of brokers have inflated income, entered incorrect details on application forms and generally abused self-cert and fast-track.
If you doubt this, ask your lenders’ BDMs and underwriters about the quality of business submitted. Unfortunately, history does repeat itself.
e had problems with self-cert in the late 1980s and early 1990s, and for a while reasonable underwriting returned.
But then, with increasing house prices, new entrants to the market and the push for new business criteria were relaxed again.
I suspect that when we see property prices going up again there would be the risk of a return to relaxed self-cert or fast-track criteria if no regulations were in place.
We need to move forward but our focus should be on what is needed to boost the availability of mortgage funding, and part of that involves confidence in the quality of mortgages written.
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