Don't slam FSA over self-cert ban, says brokerage
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London mortgage broker Capital Fortune has hit out at mortgage brokers who are “bashing” the Financial Services Authority over its proposed ban on self-cert mortgages.
It claims that the very mortgage brokers who support self-cert are often the same ones seeking self-regulation.
The mortgage broker believes that the historic use of self-cert products has often been used as a device to push through deals on the basis of little income or for borrowers who continually deceive the Inland Revenue.
It says these practices should not be condoned and there is enormous exaggeration on the number of applicants to be disenfranchised if self-cert products are removed.
Rob Killen, business manager at Capital Fortune, says: “As a company, we do find there are some borrowers who ‘legitimately’ need to use these products but in four years of trading Capital Fortune has undertaken less than a handful of self-cert applications.
“The idea that thousands of genuine borrowers will be left frozen out of the mortgage market is a fallacy and seriously undermines the professionalism and legitimacy of the mortgage brokers making these claims.”
The London mortgage adviser has lashed out at what it sees as “deceptive black - art practices” from some of the leading industry spokespeople on the issue.
It is concerned that many of the largest national mortgage brokers are coming out against the FSA despite clear evidence that borrowers entering onto these products are more likely to be tempted to inflate their income and are more likely to fall into arrears.
Killen, says: “The vocal criticism appears more about maintaining current business models than providing a safe home and suitable mortgage for UK borrowers.”
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Readers' comments (48)
Anonymous | 27 Oct 2009 4:45 pm
Crying wolf if you ask me??
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Ian Griffiths | 27 Oct 2009 4:47 pm
Four years of trading and these idiots think they are a world authority on Self Certification and the FSA's ability to make good decisions.
Come back in 10 years time (if you're still around) when you have some experience Mr Killen, then you can comment.
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Anonymous | 27 Oct 2009 4:54 pm
Banks, Bulding societies and other mortgage lsnders will still have to lend money to make money - or die.
I am certain that as I write this there will be more than one set of matketing execs looking for ways to replace the "self-cert" market with other more, 'um, "creative" affordability driven criteria.
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Anonymous | 27 Oct 2009 4:54 pm
I would be interested in knowing how many fast track mortgages Mr Killen has arranged in his extremely long career!
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GEORGE WALLACE | 27 Oct 2009 4:55 pm
I bet this is the same Mr Killen that has a Holiday Home in Cloud Cookoo land get my drift
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Anonymous | 27 Oct 2009 4:55 pm
at last...the first decent and honest response to the FSAs proposals. I applaud you Mr Killen for saying what so many are denying. If you want to declare it.... prove it .....and importantly dont expect to say one thing to the inland revenue and another to a mortgage lender. It is this honest and forward thinking of Rob Killens that exposes Ray Boulger for the dinosaur he is making himself look.
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Anonymous | 27 Oct 2009 5:00 pm
this isn't a competition on whos been around longest.....
The market now (and in the fast approaching future) will bear no relation to how it was just 5 years ago and it will be the 'new blood' in the industry that will have to put right the errors of their predecessors. no more 'when i were a lad' please!!!!
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Vote Tory - FSA out | 27 Oct 2009 5:10 pm
Guess where Mr Killen has is business? EC4N 7BN and Canary Wharf is E14 5HS. According to google they are only 14 mions apart. I wonder how many FSA staff he has as clients. Strange condemnation of self cert when he admits to using them. This is the point we are making it is only a few cases that go through on self cert not the 50% + of cases the FSA claim.
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Anonymous | 27 Oct 2009 5:13 pm
Yet the FSA and Mr killen still approve of 100% loans?
Lending to people who have never managed to save a penny in their lives!
How many 100 or 125% loans has Mr Killen arranged? And how many of those are now in arrears and negative equity?
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Kevin Paterson | 27 Oct 2009 5:17 pm
I have been in the financial services industry for 26 years and always in distribution so feel qualified to comment before anyone says 'he's in Gi what does he know:-)' The comments made about the wholesale removal of self-cert by the FSA by me and others is bourne out of a concern that there is a genuine need for the product if it is policed correctly, simply abolishing the product and not addressing these issues is a mistake and will further entrench the lending community.
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