Self-cert mortgages 'still strong'
Published On 12 January 2008
The market for self-certification mortgages has not been affected significantly by the recent credit crunch and ongoing economic uncertainty.That's according to Andy Pratt, spokesperson for mortgage advisor Alexander Hall, who said that "there's nowhere near the same impact that there has been on subprime mortgages."
He added, however, that availability has reduced slightly. "There are some lenders who have been what we would call nonconforming, and have offered subprime, buy-to-let and self-cert mortgages - and some of them have closed to new business."
A self-certification mortgage is, according to the Council of Mortgage Lenders, defined as "a mortgage where you declare what your income is, but are not required to provide proof".
They are aimed at borrowers, such as some of those who are self-employed, who may find it difficult to supply proof of income and be unable to secure loans from high street lenders.
"A very high percentage of self-cert mortgages in the UK are applied for after advice from brokers, because most customers in that circumstance need a bit of guidance, and a lot of the lenders are not high street lenders," Mr Pratt said.
