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FSA Proposes Ban on Self-Certification Mortgages
Proposals announced by the Financial Services Authority (FSA) this week are likely to mark the end of self-certification mortgages.
Self certification mortgages are those where the borrower does not have to prove their income to get a loan and a disproportionately high percentage of people suffering arrears and repossessions had this type of mortgage, and been at the centre of a number of large mortgage fraud investigations.
Commenting on the proposals, Tony Rice of Bedfordshire-based specialist mortgage and insurance brokers TMP Mortgage Zone, said: "Improving the affordability regulations can only be a good thing. Any person taking out a loan they know they can't afford is asking for trouble and the willingness which some banks lent to people with no proof of income certainly contributed to the problems we have encountered in the market over the past 18 months."
[ 22-10-2009 ]
