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Qetesuesi

When Did Self-certification Mortgages Begin?

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In all the vast depository of relevant knowledge among forum users, is there no one who can answer either of these questions?

Good old lie-to-buy mortgages.

Do a quick search of the threat titles, there have been many discussions on this in the past.

Hope this helps.

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If it helps I got one in 1989.

There was also a wheeze known as deferred interest loans. Borrow at 15% and pay back at 10%. Then after two years or so the interest was rolled up into the loan, with a massive increase in loan size and payment.

Improved 'affordability' though. Not seen these this time around.

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If it helps I got one in 1989.

There was also a wheeze known as deferred interest loans. Borrow at 15% and pay back at 10%. Then after two years or so the interest was rolled up into the loan, with a massive increase in loan size and payment.

Improved 'affordability' though. Not seen these this time around.

..... yet :lol:

However, we might not see them this time. If things continue to unravel and the whole process kicks up a gear, there will be so many people running for the exits at the same time the banks will focus on protecting their interests: rather than trying to suck the last few fools in - it just won't be worth it.

The boat has already left and it is looking very top heavy, and listing precariously to one side. To be honest, I'm quite glad I missed the boat..... The boat to financial armageddon B)

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Lie to buy is huge, there used to be a website claiming that in 2004 1/3rd of all new mortgages had no income verified against them, and that 1/5 th of all outstanding mortgage debt had been generated through such loans.

some will be valid, but only the most nieve bull would claim that there has not been a massive amount of abuse of these things.

That the IO mortgages have come up where people lie about their provision for repayment also increases the titanic amount of fraud that has propeed up the housing market is also undeniable.

the issue is that the police are aware of this and have refused to investigage it tom me in a letter. this was the serious fraud squad.

they said it was not in the countries best interest.

If this is as widespread as in thought, or only a tenth as widespread as is thought.. there is no doubt that this will be the largest financial crime the world has ever seen by an exponential factor.

Shame really.

but anyone out there who does not think that most FTB's have crossed the line massivly in taking out their loan.

1: there are few people who qualify for a 6 times mortgage.

2: FTB's do not earn £60,000 as a couple, some do. but the vast majority do not in any way.

3: If we are told that the interest payments for the average house against the average salary make up as big a proportion of take home pay is they did in 1991 we should then consider that the capital payments are massivly more , massivly.. for last time it was IR's that were high this time prices.

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Have you discovered Google? It's, like, a search tool for use on the Interweb thingy. [turn off patronising voice].

Search on Self-Certification Mortgages Statistics.

On first page I found this link to BBC article in 2004. Perhaps a bit more digging will get the exact figures you're looking for.

Here are a quote or two:

On the day "Mortgage Madness" was broadcast, the Council of Mortgage Lenders, the lenders' trade association, were quick to play down any suggestion that lax lending by some of their members could have distorted the housing market.

It could not have happened, they insisted, because the self-cert mortgages were a tiny part of the market; less than 1%.

Large problem

This 1% figure was so wildly at variance with what we had found on the ground that we didn't believe it.

We began a second investigation to try to find out how many mortgages there really were where lenders did not ask for proof of borrowers' incomes.

The result of this second investigation is astonishing.

Far from being a piffling 1% or less of the market, it turns out it is huge.

One leading broker we consulted estimated that up to 30% of new mortgages are now issued without lenders asking for any proof of income.

[my bold]

Edited by redwing

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Have you discovered Google? It's, like, a search tool for use on the Interweb thingy. [turn off patronising voice].

Ha ha. A facile and inadequate answer, which could be given to loads of posts besides. There was nothing on Wikipedia, and in my months viewing here I've never seen any treatment of it. Earlier threads on it are likely to be a bit out of date, don't you think? A huge torrent of water has gushed under the bridge of late, and that at an increasingly rapid rate.

I know about the Money Programme on SCM's, but that was two years ago. Imagine how much further fraud has been committed since then. It's a massive amount of criminality which penalises honest would-be mortgage borrowers.

As for the SFO not bothering to investigate it and if necessary close it down, perhaps too many of their bigwigs have SCM's or at least second homes/BTLs so have a strong interest in keeping the bub-bull pumped up even with artificial gas. The fact remains that if such sums were embezzled in terms of ordinary tax affairs they and HMRC would be onto it like a shot.

This gigantic fiasco and policy catastrophe makes our immigration controls look efficient.

Search on Self-Certification Mortgages Statistics.

No results returned. Nor with Altavista.

:lol::lol::lol::lol::lol:

Looks like the laugh's on me, don't you think?

B)B)B)B)B)

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Ha ha. A facile and inadequate answer, which could be given to loads of posts besides. There was nothing on Wikipedia, and in my months viewing here I've never seen any treatment of it. Earlier threads on it are likely to be a bit out of date, don't you think? A huge torrent of water has gushed under the bridge of late, and that at an increasingly rapid rate.

I know about the Money Programme on SCM's, but that was two years ago. Imagine how much further fraud has been committed since then. It's a massive amount of criminality which penalises honest would-be mortgage borrowers.

As for the SFO not bothering to investigate it and if necessary close it down, perhaps too many of their bigwigs have SCM's or at least second homes/BTLs so have a strong interest in keeping the bub-bull pumped up even with artificial gas. The fact remains that if such sums were embezzled in terms of ordinary tax affairs they and HMRC would be onto it like a shot.

This gigantic fiasco and policy catastrophe makes our immigration controls look efficient.

No results returned. Nor with Altavista.

:lol::lol::lol::lol::lol:

Looks like the laugh's on me, don't you think?

B)B)B)B)B)

Well, if you'd told me that you already knew that, then you could have saved me the journey.

Still, it was interesting finding out that there doesn't seem to be much up-to-date information on this subject.

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Well, if you'd told me that you already knew that, then you could have saved me the journey.

I didn't! Rather, if YOU'D tried the search you could have saved me MINE! So in future, don't recommend searches unless you've tried them yourself and know they deliver the goods.

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I didn't! Rather, if YOU'D tried the search you could have saved me MINE! So in future, don't recommend searches unless you've tried them yourself and know they deliver the goods.

Keep your hair on. Of course I tried the search before recommending it. It's just a shame you didn't do a bit of research yourself before posting.

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Keep your hair on. Of course I tried the search before recommending it. It's just a shame you didn't do a bit of research yourself before posting.

Right, so you knew your recommendation was insincere. Thanks.

Like I said, I found nothing to the purpose on Wikipedia. Isn't that enough for starters?

Anyway, I'd still like to know the role the growth of SCM's has played in the current bub-bull. Anyone?

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Well, i used to be a mortgage broker in the late 80's and can recall arranging non-status / self-cert deals with people like The Mortgage Corporation (now defunct, I think) as early as 1987. Criteria was pretty much the same as it is now with 75% maax LTV. I seem to remember they were VERY careful about exactly WHAT they were lending on rather than who. They were owned by Salomon Brothers and they did BIG business. I think they were a good idea back then cos you really DID have to have a 25% lump sitting around to get the mortgage. I understand it's a bit more lax nowadays :)

Never bothered with them myself. If I'd needed a mortgage, there were lots of bent FCAs who'd draw you up a set of books for a monkey.

Deferred interest deals quickly fell from favour after borrowers found themselves saddled with up to 15k more debt than they started with.

but anyone out there who does not think that most FTB's have crossed the line massivly in taking out their loan.

1: there are few people who qualify for a 6 times mortgage.

2: FTB's do not earn £60,000 as a couple, some do. but the vast majority do not in any way.

In London, they DO earn that kind of corn. £60K a year is NOTHING between two youngsters these days. lenders will lend 6 times to graduates who've come from the cream of Universities and can demonstrate even a hint at a career in a recognised profession.

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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