View more on these topics

Let’s give a boost to tomorrow’s moguls

ROBERT WINFIELD, MANAGING DIRECTOR, CHARTWELL FUNDING
ROBERT WINFIELD, MANAGING DIRECTOR, CHARTWELL FUNDING

It seems that a number of readers felt my recent article in support of self-cert and fast-track underwriting was irresponsible.

I realise this area is ripe for abuse but if managed properly I still believe it has a role to play in today’s society.

During the recession a large number of my clients have taken a brave leap of faith and moved from full-time jobs to being self-employed.

As a sole trader who works from home you can offset a great deal of household expenditure against expenses. But standard income multiple models or affordability calculators do not cater for this business model.

With mortgage affordability at such a low level and likely to remain that way for the foreseeable future a self-cert mortgage surely ticks all the boxes for this sort of entrepreneur.

What I find irresponsible is that our regulators are happy for us to arrange a mortgage for first-time buyers who have inherited a deposit of four times their proven salaries and are the proud owners of a clapped-out Astra but no other material possessions to speak of.

Bizarrely, many lenders would want to do the latter case but not help a self-employed entrepreneur at the moment.

In fact, the most irresponsible thing in all this is the lack of choice available for clients.

As a country that thrives on enterprise, surely we should be arranging mortgages today for the Richard Bransons of tomorrow.

Recommended

ALAN CLEARY, MANAGING DIRECTOR, PRECISE MORTGAGES

It’s payback time as banks make profits

It’s a bumper season for banks once more, with several reporting not only that they are back in the black but that things are looking rosy. No doubt politicians will start the whole bonus saga again and go on about how reckless bankers should be punished for their sins but I am pleased to hear […]

Newsletter

News and expert analysis straight to your inbox

Sign up