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Lenders are hit by fast-track TV attack

The Money Programme&#39s second investigation into fraud in the mortgage market moves the spotlight from brokers to lenders, accusing them of turning a blind eye to flagrant abuse of self-certification and fast-track mortgages.

The programme, broadcast on Wednesday night, shows the anger of brokers who feel that lenders are taking no responsibility for the problems the BBC identified with self-cert last October.

Many high-street lenders fast-track mortgages through their systems, reserving the right to ask for proof of income but the BBC claims that, in practice, this rarely happens.

The programme believes this sort of abuse is far more widespread than many in the market are willing to admit. In the programme, the CML says just 1 per cent of the market is accounted for by self-cert mortgages. The FSA considers the figure to 6 per cent but the BBC believes that, with fast-track included, up to 30 per cent of mortgages are issued without proof of the borrower&#39s income.

Mortgage Talk chief operating officer Andrew Frankish said: “These products have been designed by lenders and have been open to abuse and yet the lenders have seemed to come out of this without any responsibility. As a broker, that is something that we are not very happy with at all.”


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FSA urged to set the agenda for exams

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