Brokers would like to see significant changes to the criteria needed for self-cert applications, according to research by Sun Bank. Brokers it seems would rather applicants declare what they can afford, not what they earn.
The research has found intermediaries believe more than 35% of applicants state a level of income which ensures they get the mortgage, and 62% said applicants genuinely have difficulty calculating the true level of income. Worryingly, no brokers felt borrowers honestly declared their true level of income.
Jeff Knight, product development manager at Sun Bank, said: ‘These startling statistics show the current self-cert system of just using income multiples may not be the most suitable and that lenders need to have a radical re-think of how they measure self-cert borrowers’ incomes.
‘The reality is many find it increasingly difficult with self- cert mortgages to prove a level of income that reflects the mort- gage repayments borrowers can afford.’