Self-certification mortgages requires realism

Opting for a self-certification mortgage is no financial risk provided homeowners borrow responsibly, a spokesperson for the Intermediary Mortgage Lenders' Association (IMLA) has said.

While some commentators worry that people asked only to give their lender a declaration of income instead of providing documentary proof may be tempted to borrow more than they can afford, IMLA PR and policy manager Neil Johnson stressed that most lenders do check customers' financial background.

"Whilst you don't have to produce wage slips that doesn't mean your application is not going to be checked," he emphasised.

A self-certification mortgage is thus not "as open to abuse as people often claim", he added.

At the same time, he cautioned borrowers to accept that they take on "a certain element of responsibility" by applying for a self-certification mortgage.

Homeowners must take care to set their borrowing within "realistic" limits, so that they can make repayments without difficulty, he stressed.

Nevertheless, the self-certification mortgage market is "very buoyant" at present, Mr Johnson added.


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