View more on these topics

Self-cert valuable weapon, says BMS

Recent speculation has focused on a small minority of brokers abusing self-certification mortgages by overstating the income of their clients, putting the industry&#39s reputation and the client&#39s future at risk. And all for the chance of a quick sale.

Cowboy brokers jeopardise the relationship with their client and also with the lender to which they refer business.

But by no means is this the norm and it shouldn&#39t put off the majority of mortgage brokers.

Self-certification mortgages are particularly useful for the following:-

• The self employed who are not able to provide three years&#39 accounts as proof of income

• Those on short term contract work

• Anyone who has had a succession of jobs in a short space of time

• Individuals who receive a large chunk of their salary as a one-off annual bonus

Steve Sandiford, head of borrowing products at BM Solutions, says: “Self-certification is a very valuable weapon in a mortgage adviser&#39s 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 &#39sold&#39 on the basis that it extends the applicant&#39s 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.”


B2L market bouyant, but cautious

The buy-to-let market remains buoyant but cautious, according to the latest survey of trends among the Association of Residential Letting Agents&#39 (ARLA) panel of mortgage lenders. The average monthly total of actual loans for buy-to-let investment rose by 30% compared to the previous six months. However, an average loan figure of £82,141 was only 2.4% […]

Royal & SunAlliance offers brokered insurance

MORE TH>N, the direct arm of Royal & SunAlliance, is to re-launch its life insurance proposition competitive premiums to include tailored discounts for customers. The new service is to be offered in conjunction with LifeQuote from Direct Life & Pension Services. Direct Life will take responsibility for managing the terms with insurers, and administering customer […]

Seller&#39s packs and e-conveyancing must work together, says CML

The CML has reaffirmed its support for government aims to speed up house-buying following the announcement of a draft Housing Bill in the Queen&#39s Speech. The CML says it is important not to overstate the potential impact of sellers&#39 packs, and to recognise that they are not a panacea. Other initiatives, such as the National […]

Buy-to-let yields in central London drop sharply

Rental yields on buy-to-let investments in central London have dropped far more than in previous slowdowns due to an oversupply of rental properties and depressed demand from finance professionals, according to research by estate agents FPD Savills. Until 2000 changes in rents and employment in the capital&#39s financial district broadly tracked each other. However, FPD […]


News and expert analysis straight to your inbox

Sign up