One industry source claimed that networks were ‘scared stiff’ of self-cert and business levels for the product had fallen away dramatically, with one network reportedly down to just 3 per cent of its book.
The source said: “Networks are scared stiff to do self-cert at the moment and they are effectively ruling it out or putting miles of roadblocks in the way to stop it. I have heard some networks’ self-cert business is down to very low levels – around 3 per cent – which is not truly representative of the market.”
However, mortgage networks dismissed the accusations that they were leaning on ARs when it came to self-cert business.
Alex Murray, group director of mortgages at Thinc, commented: “I believe we are clear as to when self-cert should be sold and while each adviser has guidelines, we say it’s down to them to make sure the client information for self-cert is correct. I don’t see this as putting pressure on brokers as it’s part of their job.
“Our self-cert business is still healthy but with the whole industry tightening up on self-cert, there’s likely to be a fall back. Our guidelines are no different to any other mortgage network and I think it shows that networks are taking responsibility to make sure the client is getting the right deal.”
Stephen Smith, director of housing at Legal & General, said: “I wouldn’t be surprised if brokers across the market were looking at the self-cert business they do to make sure they abide by their responsibilities under MCOB to satisfy themselves as to the affordability of a mortgage.”
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