The much-trailed return of self-cert mortgages, dubbed liar loans in the wake of the credit crunch, comes today with the official launch of selfcert.co.uk.
The much-trailed return of self-cert mortgages, dubbed liar loans in the wake of the credit crunch, comes today with the official launch of selfcert.co.uk.
The lender is trading from Prague in the Czech Republic, allowing it to circumvent some of the Financial Conduct Authority’s stricter affordability rules requiring UK-based lenders to prove borrower’s income.
It will offer a tracker rate at 2% above UK Bank base rate from today and UK borrowers will be eligible to take loans on property in the UK.
Borrower’s social media accounts will be reviewed as part of the lender’s due diligence but borrowers will be able to use invoices to prove their incomes.
Selfcert.co.uk owner Graeme Wingate, also the founder of unsecured lender Quick Loans, told The Sunday Times: “We hope to do all the paperwork in-house, which means we can do it for much less than high street lenders.
“We had emails of support from around the UK. We have an unofficial waiting list of about 80 people. There are lots of wealthy people who just don’t fit banks’ criteria and are being punished with high rates.”
He also revealed plans to launch a new crowdfunding site, genesis.co.uk, which will offer mortgage products later this year.
