That’s the message from Michael Thommes, managing director of Poole-based brokerage General Finance Centre, who says the majority of self-cert clients don’t earn enough money to apply legitimately.
He adds: “They disclose income on application forms to satisfy lending criteria.”
Thommes says that self-cert clients, brokers and lenders should all be penalised or no-one should. He argues that income declarations should be scrapped so no-one would have to lie, with borrowers instead considering whether they can afford repayments and signing declarations to that effect.
But Robert Winfield, managing director of Chartwell Funding, says: “There’s no problem as long as clients are happy with repayments.”