FSA to ban fast-track and self-certified mortgages [View All]

[dipsydoodle]

Mortgage borrowers will find it takes longer to process their application and the self-employed could struggle to get a loan if proposals announced today by the Financial Services Authority are implemented.

The regulator has published a consultation paper which proposes requiring verification of borrower's income in every case to prevent over-inflation of income and mortgage fraud.

If implemented, this will prevent the "fast tracking" of mortgage applications – the granting of loans without requiring proof of income – a wide-spread practice among mortgage lenders.

David Hollingworth of mortgage broker London & Country says it could mean that rather than a mortgage being granted instantly – as often happens now providing the lender can find enough information about the borrower's credit history electronically – it could take up to three weeks for the borrower to find out if he or she qualifies for a desired loan.

http://www.guardian.co.uk/money/2010/jul/13/mortgages-fsa-fast-track-self-certified

The bit about the self employed is to a certain a load of old bollocks. They can easily use their tax returns to confirm income. If they've fudged income to reduce tax then fuck 'em anyway. I appreciate that cannot be used against those recently self employed who are only able to use bank statements for proof on income.