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Self-Cert Is Back – This Time It’s Personal.

21st January 2016


The biggest news this week has been the controversy surrounding launching. Based somewhere in the Czech Republic, they have got round our rules and are offering self cert loans reportedly at rates of 2% above base.

Demand was so high the website crashed and they have already said that with 4,000 people registering an interest they will not be able to provide for everyone.

Although we may, or may not, all be aghast at this, it raises pretty important questions. Are people just mad or does it show that in this post MMR world too many borrowers are left feeling like 3rd class citizens and are not catered for?

Are the “Factionless” rising up and exposing the need for lenders to open up their rather limited criteria?The FCA should be taking note – transitional rules anyone?

The danger for consumers is that if they do follow this route and something goes wrong then they have no one to complain to. The UK won’t cover them so it’s very much a case of Caveat Emptor.

What I also don’t get is how the lender will be able to repossess the property if they need to as they are based overseas. Will we see a return of the time honoured tradition of “sending the boys round”?

Either way, it’s a worrying development and with this level of demand you can bet that they will not be the last company to do this and I would encourage people not to engage.


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Andrew Montlake

About Monty

Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.