Self cert Mortgages & the FSA
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.
