Self Cert Mortgages, the end? Asks London Mortgage Advice the North London Mortgage Broker Thursday, 15th October 2009

It may be the end of self cert mortgages as we await the pupblication of the FSA mortgage review. And it could be a good thing if self-certification mortgages are prohibited.

These mortgages do not require the purchaser to prove income and were designed for self employed people mainly who found it difficult to show there true earnings or sometimes employed people on high commission based employment. Most lenders have now shelved them since the credit crunch.

Self-certification mortgages were treated as higher risk loans, similar to sub-prime deals.

There was a place for this kind of product in the lending market, but often it was offered to the wrong type of person or those who did not in fact earn the figures that were stated on the application form and so it is probably best that it is consigned to the past.

It may be that self-certification mortgages are one of the products that prompted the mortgage crisis and so these mortgages have are best consigned to history.

However, used properly these mortgages are a superb vehicle for the right person to obtain a mortgage. Unfortunately the credit crunch may prove to be the final period for this type of lending.