The specialist lender unveiled an solution, based on affordability last year and says its approach is simple, unique and entirely aligned with the standards embodied in MCOB.
The lender made the comment after Shadow Chancellor for the Liberal Democrats, Vincent Cable MP, contacted the FSA with concerns about borrowers overstating their income.
Paul Howard, Portman Group Intermediary Sales said, "We recognise that the circumstances of some borrowers do not lend themselves easily to conventional underwriting – our distinctive self-cert proposition will continue to fulfil the needs of these customers.”
The Mortgage Works' affordability declaration assesses suitability on net income, whilst taking account of expenditure. It also allows for the risks of interest rate volatility and the customer’s need to repay capital.
