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Majority of self-cert cases fraudulent, says broker

If the Crown Prosecution Service targeted the public as the Financial Services Authority does self-cert brokers, masses of borrowers would be convicted of fraud.

That’s the message from Michael Thommes, managing director of Poole-based brokerage General Finance Centre, who says the majority of self-cert clients don’t earn enough money to apply legitimately.

He adds: “They disclose income on application forms to satisfy lending criteria.”

Thommes says that self-cert clients, brokers and lenders should all be penalised or no-one should. He argues that income declarations should be scrapped so no-one would have to lie, with borrowers instead considering whether they can afford repayments and signing declarations to that effect.

But Robert Winfield, managing director of Chartwell Funding, says: “There’s no problem as long as clients are happy with repayments.”


Government to review Credit Guarantee Scheme

The Treasury has revealed it plans to review the Credit Guarantee Scheme in light of Sir James Crosby’s recommendations to offer a similar kind of guarantee for mortgage-backed securities.

Paradigm offers England v Italy tickets

Paradigm Mortgage Services is offering brokers the chance to see England versus Italy in the 2009 RBS Six Nations Championship.