Self-certification mortgage borrowers feeling the pinch - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Self-certification mortgage borrowers feeling the pinch

Self-certification mortgage borrowers feeling the pinch

Category: Mortgages

Updated: 31/10/2008
First Published: 08/11/2007

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Risk limitation is the key feature of many of today's mortgage changes. Sub-prime was the first casualty, with vastly tightened mortgage credit criteria and rate changes. Now it seems that the self-certification mortgage market, both for prime and sub-prime mortgage borrowers, is also beginning to feel the pinch.

For prime mortgages, Alliance and Leicester have increased their self-certification mortgage fixed rates from 6.24% to 7.74%, with the fee remaining at £1999; and Scarborough Building Society have increased their self-certification fixed mortgage rates from 6.04% to 6.19%, with the fee remaining at £995.

For light adverse self-certification mortgage fixed rates, up to 75% loan-to-value, Mortgages PLC have increased their two-year fixed rates from 7.82% to 8.75% and have also increased the fee from 1% to 1.5%. Scarborough Building Society's light adverse two-year fixed rate self-certification mortgage rates, for up to 70% loan-to-value, have increased from 6.69% to 7.94%, with the fee changing from £1495 to 1%.

By withdrawing self-certification mortgage products, increasing rates or requiring larger deposits, self-certification mortgage lenders are displaying a risk aversion to self-certificated loans in the current climate. Higher risk mortgage borrowers will be finding it increasingly difficult to secure a mortgage, particularly at an attractive interest rate. It pays more than ever to search the market thoroughly to find the best deal for your individual circumstances.

Best buys - Mortgages

Best buys - Self-certification Mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.