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Limon

New Self-Cert Mortgage Lender 'can't Meet Demand'

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FFS, not again.

A lender offering controversial self-certification mortgages – a type of home loan banned by the City regulator – claims more than 4,000 potential borrowers have registered their interest following its launch on 18 January.

But there are question marks over whether the lender, Selfcert.co.uk, will be able to cope with the demand it has created.

On Wednesday afternoon its website was offline, with a holding message stating that it “won’t be able to satisfy demand for the vast majority of those that have already contacted us”, while its phone helpline carried a recorded message telling callers that “this mailbox is full”.

Self-cert mortgages – dubbed “liar loans” – were aimed at self-employed workers who had trouble proving their income to lenders. They were hugely popular before the credit crisis and hugely controversial, amid evidence that many firms let borrowers inflate their salaries to obtain bigger home loans.


These loans were banned by the Financial Conduct Authority in 2014, following a review of the mortgage market that was launched in 2009 by then then regulator, the Financial Services Authority.

However, those behind Selfcert.co.uk have got round the rules by setting up a company reportedly based in the Czech Republic.

The firm was said to be offering a tracker mortgage set at 2% above the base rate, and was prepared to lend up to £500,000 with a minimum deposit of 15%, though it has not been possible to confirm these details because the website is out of action.

A message on the website stated: “Offline. We will be back shortly. Due to demand we are having a few issues with our new site at the moment. The site will be live today, Wednesday 20th of January.”

It added: “We do apologise but we won’t be able to satisfy demand for the vast majority of those that have already contacted us. We are very very sorry but if you haven’t already emailed or called us, we won’t be able to provide any assistance this time. We are working with others to try and increase capacity. We’ve had over 4,000 people contact us in the first two days and register an interest with us. We are working through these and will contact all of these people within the next 72 hours.”

The Selfcert.co.uk domain name was bought by a company called Quick Loans, based in Barnsley, South Yorkshire, whose founder is Graeme Wingate.

A message on the Quick Loans website by Wingate in November 2015 said: “We aren’t technically moving, there will be a brand new company formed offshore not linked to any UK company. The UK company will cease to operate and hand back its licence/permission to the FCA. The new entity won’t have a UK location, so will be 100% located in that country. We intend to offer mortgages to other EU countries, so it won’t just be the UK.”

Edited by Limon

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I have been fearing this would happen for a long time (since the bust). No new regulation would be brought in and the regulation that was introduced would be scaled back.
This will be a repeat of the 2004 to 2008 phase again. You can already get 95% mortgages, in a couple of years we will be back to 100% and by 2020 it will be 125% under another guise (100% mortgage + car loan? / secured on car?).

Anyway it's all happening all over again, but this time I will be gaining for the banks and not the other way around.

2008 - Mortgage calculator

Mortgage amount £160,000
Interest rate (%) 6.5%
Mortgage period (years) 30
Total cost of mortgage £364,071
Monthly payments £1,011

2016+ - Mortgage calculator
Mortgage amount £300,000
Interest rate (%) 2.5%
Mortgage period (years) 30
Total cost of mortgage £426,731
Monthly payments £1,185 (Same repayment adjusted for inflation)


Why would anything different happen this time?

Prices will rise and bankers will lend until it all implodes. The fraud and crime was mainly commited between 2004 and 2008, not all of the boom was lies and subprime. It's like the early stages we have just been through.

This year onwards comes the fraud, lies and subprime property loans. It simply has to happen it's human nature (greed).

You can either play this the way it's going to happen, a blow off boom followed by a massive bust or you can sit back and watch hoping something else happens.

It's up to you.

It's also human nature to want the best house you can afford (borrow).

It's in the banksters nature to make the biggest (bonus) deal possible.

It's int the government nature to turn a blind eye to it all and proclaim they are geniuses.

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Even this company has some sense:

"Any Property / Except in Greater London"

It recognises that London is in the middle of a massive property bubble and that interest only mortgages are too high a risk.

Yet the big BTL lenders carry on throwing money at London.

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There are plenty that would borrow any amount to buy anything.......not their money at risk, all they do is create higher prices for the rest....doing the banks work for them.......bet most of the London BTL lenders do not live in London....they are capitalising from the city, London wages, London infrastructure, London's rising population and London hotbeds.......

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Osborne/Carney bottled the interest rate rise just like Lawson in the 80s

Brown bottled it in 2004/2005.

It seems to me they're not bottling it, they're driving it ( DOWN) !!!!!

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What chance there being more to this than meets the eye.

The story starts with:

"4,000 potential borrowers have registered their interest following its launch on 18 January."

"On Wednesday afternoon its website was offline, "

Which implies to me, all is well and it's coming back up soon, ready to dish out that easy money.....

Watch this space...man.

but then states

"It added: “We do apologise but we won’t be able to satisfy demand for the vast majority of those that have already contacted us. We are very very sorry but if you haven’t already emailed or called us, we won’t be able to provide any assistance this time. "

So the website is not simply offline, lending has ceased to new potemtial borrowers and those people who have contacted wont get a loan either.

All sounds a bit odd to me.

Have they realised that most of the borrowers wanted to buy massively over priced houses and would never be able to pay the money back, i.e....they did a credit check :lol:

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http://www.thetimes.co.uk/tto/opinion/columnists/article4673463.ece

Was in the Times yesterday. Piece called Liar Loans are back and a good thing too by Libby someone.

http://www.mortgagestrategy.co.uk/controversial-self-cert-lender-suspends-lending/

Selfcert.co.uk has bypassed an FCA ban on self-cert mortgages by setting up in Prague and using the ecommerce directive to write business in the UK.

It is offering a tracker loan set at 2 per cent above base rate and will lend up to £500,000 at 85 per cent loan-to-value with fees of around £600.

The company is owned by Graeme Wingate. His last venture was a payday loan company called Quickloans. They closed in 2014 after Wingate declared that the environment (regulation) was becoming too hostile to work in.

Edited by little fish

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The website is back up. I was interested to read on there that they refuse to lend inside the M25 because they think London prices are in a bubble!

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