Birmingham Midshires Solutions says that the small minority of brokers abusing self-certification mortgages by overstating the income of their clients, putting the industry's reputation and the client's future at risk, should not put people off these products.
Steve Sandiford, head of borrowing products at BM Solutions, says: “Self-certification is a very valuable weapon in a mortgage adviser's armoury. It is ideally suited for those whose income does not come in regular monthly chunks.
“Intermediaries have a responsibility to give their clients best advice. If a mortgage has been 'sold' on the basis that it extends the applicant's borrowing ability without taking into account affordability, clearly this is against the spirit of best advice.
“That said, professional advisers should not let the behaviour of a very small number of brokers detract from the merits of self-certification.”