Self-certification 'buoyant market'

The increasing number of people who can benefit from self-certification mortgages is buoying the market according to the Intermediary Mortgage Lenders Association (IMLA).

Self-certification mortgages, which do not require proof of income but rather accept the customers’ declaration of their wages, are becoming attractive to a larger amount of borrowers.

Neil Johnson, speaking for the IMLA, said that while originally self-certification mortgages were designed for the self-employed, as employment patterns have shifted, self-certification is attractive to a broader range of people.

He said: " It’s a very buoyant market for them[self-certification mortgages], and that will probably actually increase as people’s employment situations become less traditional… not only the self-employed; people who have several jobs, people who do lots of freelance work, all people like that find these products very useful."

Applicants can expect to be challenged over their income claims as lenders will make checks before approving mortgages.

There are dangers involved, particularly when people say they earn and can repay more than they can, but, echoing the words of the Finance Leasing Association earlier in the week, Mr Johnson said that acting responsibly should protect borrowers from risk.

Meanwhile, Alliance and Leicester has just announced new self-certification deals on which up to 90 per cent loan-to-value can be borrowed.