The Mortgage Works announces changes to self-cert

Under the new unique solution, applicants are required to calculate and declare how much they can afford to pay for their mortgage. This will be referred to as their 'Annual Net Disposable Income'.

The new process uses the clients Annual Net Disposable Income to calculate the maximum amount The Mortgage Works will lend. This is assessed on a capital and interest repayment basis on a rate that is 1.95% higher than the Bank of England Base Rate or the actual mortgage interest rate, whichever is higher.

Commenting on the change, Matthew Wyles, Group Development Director for the Portman Group said, "Our target customers in the self-certified market tend to have complex and diverse sources of income. We have developed an innovative solution to the needs of such applicants which we are confident is entirely aligned with both the spirit and the word of MCOB."

Self-Certification Products

2 Year Fixed Rate (with extended tie in) - 4.99% fixed until 31/10/2006

2 Year Fixed Rate (without extended tie in) - 6.29% fixed until 31/10/2006

2 Year Fixed Rate (without extended tie in) - 6.79% fixed until 31/10/2006 (85% LTV)

5 Year Fixed Rate (without extended tie in) - 6.39% fixed until 31/10/2009

2 Year Discount (with extended tie in) - 5.14% discount of 1.56% until 31/10/2006

2 Year Discount (without extended tie in) - 5.90% discount of 0.80% until31/10/2006

2 Year Discount (without extended tie in) - 6.39% discount of 0.31% until 31/10/2006 (85% LTV)

Tracker - BBR + 1.95% for the term of the mortgage