Mortgage Market Review

[Road Pest]

The review then is out this coming week (a month late I might add), am sat at work with a little trepidation about what will be announced.

http://www.ft.com/cms/s/2/cbdf50c8-ba82-11de-9dd7-...

Self Cert isn't something we've done for a while so this won't affect me directly but there may be ripple effects that will. Like the models based on Markov Chains used to calculate deliquency rates pre bust, will the government work out the effects of their interference any better?

And the biggy, what other little gems will be announced I wonder?

ETA: The original article

http://www.ft.com/cms/s/0/a9338384-6b02-11de-861d-...

Edited by Road Pest on Sunday 18th October 16:43

[Road Pest]

OK, well it's just me then waiting to read it on my own



again.

[VX Foxy]

[Road Pest]

You saying I have big ears?

On the RBS bonus news thread they are talking about the fact no one looks at the FSA and I think they must be right, because apparently when they are mentioned no one knows who they are or just don't care.

This is meant to be the governments response to how they will remove the problems we've encountered from happening again.

Maybe I started the thread a bit early

[VX Foxy]

Road Pest said:

You saying I have big ears? :

Pardon?

[Road Pest]

What have you got little ones?

Do you want me to speak up a little.

[VX Foxy]

Quarter past ten

[Road Pest]

This isn't exactly how I planned this thread to go

[VX Foxy]

At least it's still alive!

[Road Pest]

Aww at least someone cares.

[john_p]

I'll join in!

So they are going to ban self-certified mortgages ? Even if the applicant has a good credit history? Bad news for self-employed people.

[SLacKer]

I have had two self cert mortgages over a period of 11 years and paid the last one off late last year.

So I am a bad risk - NO it is the kipper and curtain brigade who have no sense of money control and over stretch to the point of breakage so they can have the holiday they deserve. Now because of them I will no longer be able to keep my financial affairs private - THANKS A LOT. Typical over reaction - self certs tend to be < 80% LTV so if you have 20% deposit you are a pretty good bet.

Before anyone asks yes I paid it off but I may decide to move in future which may require a mortgage.

[Road Pest]

john_p said:

I'll join in!

So they are going to ban self-certified mortgages ? Even if the applicant has a good credit history? Bad news for self-employed people.

It's only speculation but that's one of the things that may be announced. Of course if you are self employed you pay an accountant to write off as much income as they can for tax reasons, that then leaves what "they pay themselves". And that may not be enough to cover their mortgage.

Self Cert, iirc, is not where no income proof is needed but the broker looks at the income (evidenced on bank accounts etc.) and makes the judgement of whether the mortgage is affordable. I didn't think you could just turn up and say I earn X, please can I have a mortgage please, without any evidence to back it up.

[AndrewW-G]

Sounds like their making it all but impossible for the self employed or part timers to get a mortgage, no doubt soon to be followed by no mortgage unless you work for a nominated blue chip or in a branch of the government