Genesis Home Loans has issued a statement to the market place in order to clarify its position on self-cert mortgage business.
The recent screening of the BBC's The Money Programme highlighted concerns regarding the way some self-cert mortgages are being old.
Genesis says that whilst there is a place and a genuine need for the self-cert mortgage, it is not a licence for the mortgage adviser or applicant to commit fraud.
It is for those genuine cases that self-certification mortgages will continue to have a place in the Genesis product portfolio. For theself-employed and employed applicants who receive income from a variety of sources, – second jobs, car allowances or high bonus pay - traditional enders are often unable to include these types of income when calculating he maximum loan available.
In these instances Genesis says self-cert of income is appropriate. It adds that brokers and applicants should be aware that most lenders carry out a 'reality check' on the applicant's income against their occupation.
In addition the information available to lenders from the credit check agencies does allow them to make a reasoned judgement on the applicant, and the majority of lenders use this information in their underwriting. This is also true of the Genesis panel of lenders.
Finally, the underwriter will look at the applicant's income in respect to the occupation they have and decide if the amount declared is reasonable.
Genesis believes self-cert remains a product that can benefit a client in the right circumstances. As long as these mortgages are used correctly, and the applicant is made fully aware of their commitments, it says self-cert will remain a useful product.