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.