30 January 09
Self cert mortgages face extinction after BM Solutions and Bank of Scotland became the latest lenders to pull out of the sector.
The HBOS lenders, now part of Lloyds Banking Group, will no longer accept any self cert business. Both in recent years have been large players in the self cert sector.
This comes after both GE Money Home Lending brands iGroup and First National revealed they were to stop accepting new self cert business last week, and Bristol & West pulled out of new mortgage lending completely. Nationwide’s The Mortgage Works and Britannia’s Platform remain the only lenders who offer any kind of self cert mortgage.
John Charcol senior technical manager Ray Boulger says the future is grim for the sector: “I would expect we will be receiving an email from Platform and TMW announcing that they have either pulled out of self cert or at least changed their criteria.
“It’s a shame because self cert is a key sector of the mortgage industry, if it is done properly. I doubt anyone will have the appetite to lend self cert now and I would think the sector will go the way 100 per cent mortgages went last year.”
www.moneymarketing.co.uk
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