www.iva.co.uk

Its absolutely crazy isnt it.

It's no wonder people get themselves into trouble if they are being encouraged to borrow more than they can afford.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hear hear Oliver!!!!

Hence my pending bankruptcy! And a mortgage lender was prepared to lend me £315K paying interest only at £2422 and a net income of £2800.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

This was already reported in the IVA News and as I posted there:

This absolutely infuriates me – as responsible mortgage brokers we NEVER inflate some ones wages – we have had lender BDMs ask us; why not? as everyone else does it..

Reason being is that is a person cannot afford a mortgage they are likely to default, if they default and can prove that the mortgage broker has committed or aided an applicant to commit mortgage fraud the broker could be liable to pay the remaining outstanding balance of the mortgage and the advisor could lose his job and the ability to offer advice for life.

On many occasions we have had clients phone back into the office, with pleasure in informing our advisors that; although we had recommended that a product was not in the ‘clients best interest’ due to affordability, they had managed to get it placed with a ‘one man band’ broker.

I wish these newspapers would name and shame these firms or at least name the firms who refuse to lie on the applicants’ behalf!

I welcome mystery shoppers as a method to catch out unscrupulous mortgage brokers and lenders and wish the FSA would take more action when a company is caught out. I find it hard to believe that they (the FSA) have not commented on this story or demanded details of the firms involved.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

Mike

Why do lenders accept mortgages without proof of earnings?!! Is this becuase of potential future earnings being taken into account?!!

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi
To be fair there is a need for mortgages without proving earnings,self employed often have trouble showing their earnings so self cert does help.
I think having self cert available to employed people is questionable though.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

ThomasCharles

Lenders don't or at least not supposed to lending without proving income…

But how far do you go? You have to believe what an applicant tells you, unless you have reason not to. All lenders (for true self cert) ask applicants to sign a declaration to declare what they say about their earnings are correct.

When a auxiliary nurse tells you that she earns 45 grand in wages and 20 grand on ebay… well you can assume she is not telling the truth – however if a jobbing builder tells you that he earns 45 grand a year and 20 grand a year leasing equipment to other builders. Why would you disbelieve them, if they are registered with the tax office and they sign a declaration?

Borrowers have to take responsibility for what they borrow, and ensure they will have the funds available to pay back what they borrow over the term of the loan.

Most ‘self cert’ deals go through to completion without anyone telling porkies (well, perhaps to the tax man anyway) – the ones that shouldn’t complete, are the ones where the applicant is encouraged by the lender/broker to lie about how much they earn to fit the lenders criteria.

Self cert works ,and will continue to do so, in the right circumstances.


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

i applied for a mortgage three years ago the broker told me to inflate my wages.....

There seems to be a grey area here, the recent mortgage regulation of the industry focuses very strongly on ensuring affordability but there seems to be a loop hole for unscrupulous mortgage advisers and dishonest applicants.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

The mortgage industry has been regulated since 31st October 2004 - you would think that this would have been enough time to weed out these cowboys.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

Prior to the FSA regulating us there was of course the MCCB, I listened to the radio presentation and was quite shocked at what I was hearing particularly the Buy to Let situation seemed bizarre with incorrect sale prices registered at the Land Registry. As brokers we regularly turn away business that we feel isn`t right, the FSA are doing a good job and it is human nature I suppose someone is always looking for a short cut. Tony