We used to live in a society of tomorrow doesn’t matter, High Loan to value (LTV) loans, self cert mortgages and a focus on high growth and high risk sub prime lending which meant that some lenders lost sight of the risks they were taking. The market is seeing much of this lending now unravel.

The mortgage market is now totally different to 6 months ago; it is now wholly dominated by six large, balance sheet lenders. With the recent pass through of the Northern Rock Granite structure, we are unlikely to see any early, restoration of securitisation markets.

For the time being it was not the place for the FSA to answer questions about whether self-cert mortgages or high LTV loans should be monitored more cautiously. There is a market with the Council of Mortgage Lenders that is willing to take an open mind and collaborate with, learning from the past, and making sure that we get a more sustainable market in the future.

When lenders have adequate liquidity, funding and capital; strong systems, borrowers can enjoy the benefits of a vibrant market but are not exposed to unnecessary risk. The end result of this credit crunch will be a more sustainable, more realistic market and homes that everyone can afford to buy and stay in.

If you want to speak to a mortgage advisor about your options with self cert mortgages, then contact Click n Go Mortgages and talk to an expert about your options.

The current financial situation and the impending ‘recession’ has been blamed on self certification mortgages.

Self cert mortgages have been named as the reason for the credit crunch by many in the financial markets, sighting the ‘no proof of income’ as a red rag to those who were desperate to get onto the property ladder.

Many people who have taken out self cert mortgages are now finding it increasingly hard to pay back the loans and many homes have been repossessed.

With self cert mortgages taking the blame, the financial market has clamped down on this type of lending and stricter policies have been introduced as a way of getting the market back on track.

However, the need for this type of mortgage has not dwindled and there are still self employed people who need this type of mortgage to get onto the property ladder. In fact numbers have increased and lenders who are brave enough to offer this type of mortgage will reap the rewards in the long run.

Currently many self cert mortgages have been pulled from the market and many will find it hard to get one in the current market. Although the day of ‘no proof if income’ mortgages may have passed, there are still other options and ways that self employed people can get onto the property ladder.

If you want to speak to a mortgage advisor about your options with self cert mortgages, then contact Click n Go Mortgages and talk to an expert about your options.

The nationalisation of Bradford & Bingley, just as Northern Rock was, spells the end of self cert mortgages and buy-to-let.

Bradford & Bingley were the leading provider of self cert mortgages and buy-to-let mortgages and it looks as if we will see these two mortgage products being phased out with B&B’s nationalisation.

Over the next couple of years B&B’s mortgages will be slowly run down and it is highly unlikely that the government will want to use taxpayer’s money for new self cert mortgages or buy-to-let mortgages.

This means that we will be looking at the end of an era for self cert mortgages and buy-to-let mortgages, as many of the other banks are loathe to offer these kinds of mortgages, noting the risk that they pose in today’s volatile climate.

The removal of both self cert mortgages and buy-to-let mortgages, will mean more pressure on house prices and on those who have buy-to-let mortgages that are going to need refinancing.

Self cert mortgages raised too much money too cheaply on global money markets, which, although helped people onto the property ladder, has landed the economy, and other people hoping to buy, in hot water.

Let’s hope that the B&B nationalisation is the last serious crisis for UK banking, but perhaps this is just optimistic.  Many speculate that the worst is yet to come, but are they just scare mongering.  Although we could be looking at the temporary shelving of self cert, this surely cannot be the end of a mortgage product that gives opportunity to those who cannot prove their income.  Within this in mind, perhaps the Government and FSA should just be reassessing this type of mortgage and bring in tighter rules and regs to govern these types of mortgages.

A new range of five year fixed rate mortgages have been launched by Kensington, which will include self cert mortgages.

The new five year fixed rates will start from 6.39 per cent and will cover a range of products including self cert and buy-to-let.

The arrangement fees will very much depend upon the product, but you can expect to pay anything from £1999 or 2.5 per cent of the loan amount.

Kensington have launched these new deals in response to the market changes and demands.

Changes in customer trends have meant that borrowers are looking for more peace of mind with longer fixed term rates.
Kensington’s self cert and buy-to-let products come out on top, in comparison to other rates and it will be these products that they will be looking to get a good return on.

Although the completion fee is larger than most deals available from other lenders, the options you get are much greater i.e.: being able to select a fixed fee or a percentage of the loan, which means that borrowers have the opportunity to take the cheapest route.

Speak to Click n Go Mortgages today and we will find you the best self cert mortgage deal from all of the lenders.

The credit crunch is affecting everyone and the pinch is very much taking hold of people up and down the country.

With the housing market hugely under fire, mortgages are very much being pinched. Lending criteria has been stepped up and 100% self cert mortgages or self cert mortgages offering large amounts of credit have been taken off the market and are a thing of a past.

Self cert mortgages have been affected quite a bit by the credit crunch, probably more so than any other type of mortgage and so when you are looking at getting a self cert mortgage now, you will find that there are fewer lenders on the market willing to help.

There isn’t a problem with self cert lending, but those offering self cert mortgages have been exposed to the sub-prime market. This has lead to a significant number of specialist lenders leaving the UK market or closing down that area altogether.

The criteria to get a self cert mortgage has also tightened across the market, so now only the most competitive rates are available to those with a deposit of 25% or more. Even with a deposit of 25% you will still pay a mortgage rate of around 7.5%.

A typical 25 year repayment mortgages of around £200,000 your monthly repayments would be £1,477.

There is a very competitive rate which gives 5.99% but is only available to those who have a 50% deposit and comes with a 2.5% arrangement fee, so if the mortgage is £200,000 you will pay £5,000.

For those who do not have 25% or more to put down, which is around £40, 000 or more, there are still a few deals where 80-85% are available. So as long as you have 15-20% to put down, you can get a larger self cert mortgage.

The key to getting a good self cert mortgage deal now is to seek a mortgage advisor who has access to the whole of the market and is going to be able to find the right self cert mortgage deal for you. If you want to know more about self cert mortgages and would like to speak to one of our Click n Go mortgage brokers, then contact us for advise on the market and how you can get onto the property ladder.