Platform withdraws from self-cert following MMR proposals
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Platform the intermediary lender of the Co-op Bank has today announced that it will be withdrawing from the self-certification market in light of the FSA’s mortgage market review proposals.
Last week, the FSA’s MMR paper proposed banning self-cert mortgages. Platform is one of the last lenders operating in this market and will withdraw all of its self-cert products by the end of the week.
The lender says it intends to develop a new product for self-employed people which will meet the FSA’s new guidelines.
Platform managing director David Tweedy says: “The FSA Mortgage Market review paper has shown that continuing to offer self certification mortgages in its current format is unfeasible and after careful deliberation of the paper, Platform has now taken the decision to withdraw from the self certification market.
“We understand the FSA’s concerns around income verification and fully support its aims to improve transparency in the industry. However, we continue to believe that the industry must recognise that self employed people can have different circumstances and may not always be able to provide the normal proof of income documentation required.
“As a lender which prides itself on financial inclusion Platform remains committed to supporting self employed people and will now work with the sector with a view to developing a new product that meets the FSA’s guidelines.
”All our existing self certification customers will not be affected by our withdrawal from the market, on November 6, and their accounts will continue to run as normal.”
Platform also operates in the mainstream mortgage market and offers fixed and tracker rate mortgages to customers via intermediaries. Specialist lending represents less than 20 per cent of its business.
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Readers' comments (3)
Stuart Duncan | 4 Nov 2009 3:14 pm
Dear, oh dear. I am so sorry to hear this. Just suggesting the banning of self-cert is already closing doors rapidly for this sector of mortgage borrowers.
I hope that the FSA have some answer to this problem that is tenable.
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michael brayne | 4 Nov 2009 4:22 pm
Yes, seven years after the damage is done the FSA see the lights.
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Jim Payne | 6 Nov 2009 11:33 am
Seven years ago I did a self-cert mortgage for an overseas client of mine. This ran perfectly, along with his other UK finance arrangements. Two years ago he wished to sell his UK flat and buy a house. I was able to arrange a self-cert mortgage for £1.2m (with somewhat more than standard self-cert info!) which has also run perfectly. Now he will be unable to move his mortgage even if the lenders SVR were to drastically increase so is locked in at the mercy of the lender. You can see what lenders will do, they will just have 2 or more SVR's for, new clients, existing clients, clients who were originally self-cert...........need I go on?
Perhaps the FSA, who only understand regular workers in regular jobs, could explain to me why they feel they should now be dictating how my client must make his mortgage arrangements. It seems they have this dumb down to the lowest common denominator mentality which ends up with a 'one size fits all' result.
Going further, in ten years as a specialist in this sector I have only had one client get into difficulties. So less than 0.2% of the mortgages I have placed.
I was not aware Mr Brayne that UK self-cert mortgages were the cause of the credit crunch!
It is clear that the FSA is again overreacting and regulating things that should rightly be left to lenders underwriters. The FSA unfortunately and incorrectly believes that it always knows best. Except when it doesn't. Appearing to be hugely busy running around fixing things at the micro end may seem good policy but is mostly smoke and mirrors to try and get clear of the mess at the macro end of the market. It is however no substitute Mr Sants for getting to grips with the banking model. Please get to grips with that rather than closing down my clients options.
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