Self-cert lenders adopt wait and watch stance
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Platform and Beacon Homeloans say they are fully digesting the detail in the Mortgage Market Review before making any decisions regarding their self-cert products.
The Financial Services Authority proposed a ban on self-cert in its review last week and wants all mortgages to have income verification.
Lee Gladwell, director of sales and propositions at Platform, says it is trying to find a way it can develop a solution that meets the requirements of the market within the regulator’s guidelines.
He says: “We believe the industry must recognise that some self-employed people cannot always provide the normal proof of income documentation required.”
Clive Wilson, sales and marketing director at Beacon Homeloans, says the firm - which is funded by German bank HypoVereinsbank - is still digesting the review in terms of its position on self-cert.
He says: “At the moment it’s business as usual and we will make a decision over the coming weeks.”
Ed Harley, head of mortgage policy at the FSA, says it is not proposing a ban on lenders fast-tracking elements of mortgage applications.
He says: “What we are saying is that every mortgage has to be associated with income verification. This does not prevent an application from being fast-tracked if appropriate, for example, while waiting for local searches or title deeds.
“But fast-tracking will only be possible once income has been verified.”
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