I welcomed the comments made by Ray Boulger, senior technical manager at John Charcol, in his Mortgage Strategy Online blog last week on self-cert.
There is a place in the mortgage market for controlled self-cert products. Agreed, it has been abused in the past but why can’t we learn lessons from it?
Self-employed people will work to their means, with many choosing to have a day off here and there as they have no immediate need for extra earnings.
If they were to take on a larger mortgage, the ability to earn more to pay the extra borrowing is there.
It cannot be right to have to prove the extra earned income by way of three years’ accounts before being allowed to take on extra borrowing. If an employed person was given a pay rise, the lender would not wait for three years to allow it to be verified income.
Clear guidelines are required to allow self-cert back into the market. These guidelines are open for debate, but a great starting point would be some common sense.
The quicker the market allows these thousands of borrowers a fair option, the better for us all.
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