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‘Banned’ self-cert loans set for return


A new lender is looking to bring back self-certified mortgages at the start of next year.

The FCA banned so-called ‘liar loans’ in the Mortgage Market Review. However, Graeme Wingate, the founder of unsecured lender Quick Loans, is looking to bypass UK regulation by setting up in an Eastern European country, the identity of which he would not disclose.

While the new lender,, will not have to abide by UK regulation, it will have to adhere to the incoming Mortgage Credit Directive, although it is less strict on rules around creditworthiness and income verification.

The directive merely states that the borrower’s income must be “appropriately verified, including through reference to independently verifiable documentation when necessary”, whereas the MMR explicitly states “a firm must not accept self-certification of income”.

Wingate says: “We’re setting up a new company [in Eastern Europe]. The regulator out there has been very friendly and helpful to us, walking us through the process of getting a licence. It is quite a straightforward process.”

Wingate plans to passport into the UK under the Electronic Commerce Directive.

An FCA spokeswoman says: “A Firm located in an EEA Member State can provide a lending service under the Electronic Commerce Directive to UK consumers, but the service has to be provided solely at a distance and on-line.

“This service however would not be regulated by the FCA and if something went wrong, the FCA is not generally able to intervene, additionally there would be no recourse to the compulsory jurisdiction of the UK’s Financial Ombudsman Service.”

Wingate says he expects to obtain a lending licence within the next week.

Self-cert loans were initially meant to be for self-employed borrowers or those with irregular income but in 2007 they accounted for over 50 per cent of new lending, according to the FCA.

Trinity Financial product and communications manager Aaron Strutt says: “Self-cert mortgages are a real blast from the past and many brokers will be surprised that there is even a chance they will be available again.

“It is hard to see how self-cert can play a part in a modern financial market, even if a lender can get around the rules by operating online and via another country.”

The lender expects to launch in mid-January.

The announcement on Quick Loans’ website:

We are pleased to announce that as of January 2016 we will be at the forefront of bringing back self-cert mortgages to the UK through our new sister site.

Self-cert mortgages are important vehicles for those who are self-employed and want to get on the property ladder. Without them, those who went in to self-employment have often found themselves unable to get a mortgage – we want to reverse that.

We believe that the products were unfairly blamed for the banking crisis – in reality they actually had little or nothing to do with the crash, on this side of the Atlantic anyway. Blatant fraud (often by brokers) and mortgage backed security swaps in which banks lost their common sense were the real reason that the banks crashed. We intend to avoid both of those major factors.

The majority of people on self-cert mortgages did not default and are up to date on their repayments. We are confident that our own assessment process will reduce fraud as much as humanly possible and well within manageable levels.

Quick Loans Ltd has recently purchased the domain name – it is from this site we and our partners will slowly look towards proving the concept and viability of bringing back these products to the market on a larger scale. We expect interest to be high from day one, so much so that we don’t expect to meet demand on our own.

We will be in a position to release more details on this in the coming weeks with a launch date of mid-January 2016.



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  • Pam Thompson 27th July 2016 at 11:18 am

    I have been reading up on self cert’ mortgages and still don’t understand why they were banned. The government blamed them on the crash, but in fact, there were less repossessions on self cert’ mortgages than normal mortgages. I got my current home on a self cert’ 20 years ago and have never been in arrears nor had a late payment. I need to remortgage to do some repairs, get a new kitchen etc but because I’m not ‘normal’ (I am self employed, never had a 9 to 5 job, do a bit of wheeling and dealing) nobody will touch me for a mortgage. I am hoping the EU self cert’ mortgage becomes commonplace. The FSA has issued big warnings about it but that’s more about millions of £ leaving the country. They need to bring back self cert’ and get the property market flowing again, unless the government just wants wealthy property owners to make lots of profits from renting homes out, while your average person will not be able to buy because they don’t meet the strict criteria. Banks seem to only want to lend money to people who have plenty of money and have no need of a loan. The world’s gone bonkers. The Self cert’ mortgage lenders never lost out as any default meant they took the property back and sold it. It’s all about keeping the poor down under their jackboots.

  • mark williamson 18th November 2015 at 8:19 am

    I think this is just a case of free publicity for his firm with no real intention of launching this product. We will probably see his ‘real’ service/product launch over the next couple of weeks

  • Dan McGeehan 17th November 2015 at 4:06 pm

    I think that the press release is being given more credence than it should. Let’s just assume that you could get a banking licence in a different country. There are lot’s of questions to be asked. Where exactly would he get his funding from as he already alludes to the fact that they need this? Even although it’s not in the UK there would be rules around capital adequacy. What law would cover the mortgage offer and would solicitors even accept this? What about money laundering…who would fund it and could you then be an accomplice if you got a loan sent over to buy a house?

  • Steven Balmer 17th November 2015 at 3:49 pm

    Anyone else feel this proposition lacks all morality? Vultures like this should be banned from ever obtaining a UK license for any other business. If he is seen to be gaming the system to the detriment to UK citizens remove his CC functions as not fit and proper, refuse to allow him to sit on the board of any other UK licensed company and his self serving motivations may change. This is typical of greedy selfish financiers who unlike most brokers look to ensure customers are at arms length and don’t give a damn about the outcome of their propositions. He may gain traction from trolling the net fishing for the desperate but I hope he loses everything and learns to empathise with the financially vulnerable.

    • Pam Thompson 27th July 2016 at 11:21 am

      why does it lack morality to offer a service for those (like me) who need it? Or should property ownership only be for wealthy 9 to 5 people? I am trying to find an EU country where I can get a self cert’ mortgage because I’m not like the average Joe.

  • Stuart Gregory 17th November 2015 at 1:42 pm

    Broker fraud? Ah, right, it was brokers not lenders going for high profits then? What have we been through the past 7 years for??

    Far better to EDUCATE ACCOUNTANTS and their clients that the world has changed.

  • Paul McGonigle 17th November 2015 at 1:40 pm

    agreed Keith Hood!!! You would have to be crazy to recommend this to a client. What this lender fails to understand is that they need traction to lend. A reasonable mortgage broker would not do, the regulator will not encourage it and the sourcing systems are unlikely to promote it…..

  • Devraj Ray 17th November 2015 at 1:37 pm

    Always inspiring when your mortgage lender doesn’t even want to say what country it’s based in. How mysterious. Even more of a mystery is why anyone in their right mind would want to use such a proposition unless they simply couldn’t get a loan from anyone bothering to actually look at whether they could afford it or not.

    • Pam Thompson 27th July 2016 at 11:24 am

      It’s based in Czechoslovakia. As for checking whether people can afford it, people in work end up losing jobs or getting reduced hours. People on a high income might have high expenditures and not be able to meet repayments. People who got self cert mortgages actually had a very low percentage of repossessions compared with ‘normal’ people. I have a self cert mortgage, have never been in arrears nor missed a payment either.

  • keith Hood 17th November 2015 at 1:31 pm

    is it April the 1st?


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