View more on these topics

Banks drop employed self-cert

Royal Bank of Scotland and NatWest are pulling out of self-certification mortgages for the employed after controversy over the product.

A BBC TV programme claimed recently that some mortgage brokers encourage consumers to inflate their incomes when applying for self-cert mortgages.

The RBS move follows West Bromwich Building Society and Sun Bank making changes to their self-cert offerings. West Brom will no longer offer self-cert loans over £250,000. Portman Building Society subsidiary Sun Bank has by reducing the loan to value on its self-cert product from 85 per cent to 75 per cent for self-employed applicants and 70 per cent for employed applicants.

RBS is playing down claims that its withdrawal from the employed sector is a reaction to the BBC programme, saying it will continue to offer self-cert mortgages to the self-employed.

The Mortgage Code Compliance Board has made it clear that it does not believe self-cert is suitable for employed people and brokers have expressed concerns over offering self-cert mortgages to the employed.

London & Country mortgage specialist David Hollingworth agrees with RBS&#39s decision to withdraw from the market as he believes the product is high risk.

NatWest spokesman David Outhwaite says: “We are only ceasing to offer self-cert to the employed, we are not pulling it for the self-employed. This has always been primarily where we have received the most enquiries, we have seen very little from the employed. The product is there for those who cannot certify their income.”

Hollingworth says: “RBS is clearly wanting to state its good intentions by removing what it sees as a higher-risk product.”

Recommended

Transfer boost as buyout rules bite

Transfer values from occupational pensions are rising by up to 50 per cent as new rules take effect. National IFA Millfield says a client who requested a cash-equivalent transfer value in November was quoted £362,573 – a 48 per cent increase on the £245,541 that was previously offered in March. Cash-equivalent transfer values received a […]

Millfield in estate agent tie-up

Millfield Group is signing a deal with London-based estate agent Chesterton Residential to offer independent advice to its clients. The strategic alliance will see clients from Chesterton&#39s 17 London offices given access to Millfield&#39s 280 mortgage advisers. Millfield chief executive Paul Tebbutt says: “We are delighted that Chestertons has chosen to work with Millfield on […]

House prices continue to rise in London – Hometrack

House prices rose by 0.4 per cent in London in November, up from October&#39s rise of 0.3 per cent according to Hometrack. Prices fell in two boroughs, rose in 24 and remained the same in seven. The highest price rises were in Waltham Forest (1.5 per cent), Bromley (1.4 per cent), Enfield (1.4 per cent), […]

Up the pole

At last week&#39s Mortgage Expo, one bright spark hit on a great wheeze for grabbing brokers&#39 attention. Majestic Mortgages&#39 stand featured a pole-dancing act while attractions from other exhibitors included bunny girls and other scantily clad young women. This comes on the eve of regulation by the FSA and at a time when self-cert concerns […]

Benefits - thumbnail

Global benefits predictions for 2015 from Jelf International

According to Doug Rice, managing director of international services, in 2015, managing their international duty of care will become an increasing focus for UK-based overseas organisations in both managing their short- and longer-term challenges. As a result, strong independent advice and innovative technological solutions will become more important than ever in managing their global benefits.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com