Jump to content
House Price Crash Forum

Self Cert Is Back


Recommended Posts

0
HOLA441
1
HOLA442
2
HOLA443
3
HOLA444
4
HOLA445
5
HOLA446
6
HOLA447

Is this the one that gets its mortgages via the Czech Republic or thereabouts?

Just checking up on those chaps and it appears that they intend to make 300 loans. As per this Guardian piece from January 2016 that comedy little lender, SelfCert, were trying to work around UK regulation on self-certification lending to owner-occupiers.

Since the introduction of the MMR rules in April 2014 lending to owner-occupiers is regulated and the rules governing the conduct of the lenders are tighter than they've been since the early 1980s. (Quite an interesting update on MMR implementation from the FCA early this year.)

However, buy-to-let lending still remains essentially unregulated.

The upcoming PRA rules on credit underwriting addresses concerns about the soundness of the lending firms.

The kind of regulation that (supposedly) stops financial firms ripping of their customers is the part of what is referred to as 'conduct regulation' and is the responsibility of the Financial Conduct Authority, but buy-to-let borrowers are not considered to be consumers so the FCA don't seem to get their hands dirty.

The other regulatory track is the so-called macro-prudential concerns of the Bank of England's Financial Policy Committee. The FPC have been seeking regulatory powers over buy-to-let lending for a couple of years now IIRC. The consultation on those powers opened in December 2015 and closed pretty quickly thereafter IIRC. We ought to get some movement forwards on that before the end of the year. If the FPC does get powers and does intervene then the intervention will likely take a form similar to the soft-cap on lending to owner-occupiers and will target the pro-cyclical nature of BTL investment and the extent to which they are hiking the implicit debt servicing ratio of the mortgage-landlord-renter 'unit'. (Well, that's my view from the cheap seats, DYOR.)

Edited by Bland Unsight
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information