2nd-Mortgage

Self cert mortgages are available to everyone, but in particular are useful for those who cannot prove their income or do not qualify for standard mortgages. You are not required to provide documentary evidence of your mortgage, but it is important that the information that you supply is as accurate as possible.

Self cert mortgages criteria has also tightened across the market, so now only the most competitive rates are available to those with a deposit of 25% or more.  Even with a deposit of 25% you will still pay a mortgage rate of around 7.5%.A typical 25 year repayment mortgages of around £200,000 your monthly repayments would be £1,477.

There is a very competitive rate which gives 5.99% but is only available to those who have a 50% deposit and comes with a 2.5% arrangement fee, so if the mortgage is £200,000 you will pay £5,000.

Self cert mortgages raised too much money too cheaply on global money markets, which, although helped people onto the property ladder, has landed the economy and other people hoping to buy in hot water.

It seems that every single building society that has become a public trading bank has collapsed under the pressure of self cert mortgage and buy-to-lets and is now hoping to be rescued or swallowed up by a bigger bank. In the days were Northern Rock hit rock bottom and was taken into public ownership and HBOS, owner of the Halifax, was bought by Lloyds TSB, in a bid to rescue the bank, we are seeing the end of a credit country.

Nation wise – one of the only building societies that refused to follow suit – is still be standing, quite strong in fact. Let’s hope that the B&B nationalization is the last serious crisis for UK banking, but is this just optimistic? And although this looks like the end of self cert, have we really seen the end of this type of mortgage product?