Cheval CEO Alan Margolis said that Cheval had already moved away from Self Certification for its short term bridging loans and that there was no conflict between undertaking proper due diligence on borrowers and the tight timescales that bridging loans are often subject to.
"Responsible short term lenders always ensure that their borrowers can both afford the monthly interest payments and have a realistic exit to repay their bridging loan. To achieve this, only properly verified information will suffice, and this is even more important now given that Self Cert mortgages have not only disappeared from the market, but it seems that the FSA will effectively ban them in the future.
"Cheval has repeatedly proven that with a bespoke service, it is possible for borrowers and their advisers to meet all the paperwork requirements of TCF and genuinely responsible lending within extremely tight timescales that are usually outside the capability of larger mainstream lenders."
