Brokers have been accused of abusing fast-track underwriting by placing self-cert clients on these deals.
Fast-track products offer clients prime rates without the need to provide proof of income. But lenders reserve the right to check clients’ payslips.
However, Danny Lovey, proprietor at The Mortgage Practitioner, says: “Many brokers are putting clients who can’t verify their incomes onto fast-track deals, abusing the fact that some lenders are lax about verifying income.
“Lenders know this is going on but if the Financial Services Authority clamps down, they will pass the buck on to brokers.”
A spokesman for the FSA says: “We keep a close eye on market developments and the way business volumes are moving, and we have no thematic review of fast-track planned.”
Northern Rock, Halifax and Abbey are three large lenders that offer fast-track deals.
A spokeswoman for Northern Rock says: “We don’t normally request doc-umentation to verify applicants’ in-comes for fast-track deals but will seek more information if we believe investigation is required.”
And a spokesman for Halifax says: “If a client can’t provide income information when requested, their application will be declined.”