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Self-Cert Is Back – This Time It’s Personal.

21.01.16

The biggest news this week has been the controversy surrounding selfcert.co.uk launching. Based somewhere in the Czech Republic, they have got round our rules and are offering self cert loans reportedly at rates of 2% above base.

Demand was so high the website crashed and they have already said that with 4,000 people registering an interest they will not be able to provide for everyone.

Although we may, or may not, all be aghast at this, it raises pretty important questions. Are people just mad or does it show that in this post MMR world too many borrowers are left feeling like 3rd class citizens and are not catered for?

Are the “Factionless” rising up and exposing the need for lenders to open up their rather limited criteria? The FCA should be taking note – transitional rules, anyone?

The danger for consumers is that if they do follow this route and something goes wrong then they have no one to complain to. The UK won’t cover them so it’s very much a case of Caveat Emptor.

What I also don’t get is how the lender will be able to repossess the property if they need to as they are based overseas. Will we see a return of the time honoured tradition of “sending the boys round”?

Either way, it’s a worrying development and with this level of demand, you can bet that they will not be the last company to do this and I would encourage people not to engage.

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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