Drop in level of self cert mortgages
September 8, 2009
Since the onset of the global credit crunch in 2007 the mortgage market has undergone many changes, and this has been reflected in recent data that has been released in relation to self certification mortgages.
According to figures there has been a sharp drop in the number of self cert mortgages in the UK, and whereas a year ago these mortgages made up around 10 percent of the total mortgage market they now make up less than 2 percent of the market. In 2007 these mortgages accounted for a 17 percent share of the market.
The data was released by Evaluate Technologies, and shows just how difficult it has become for self employed consumers, those that are unable to prove their income, and those that have income from a range of different sources to get a mortgage.
According to officials from the group only 2 percent of the fixed rate mortgages available these days are self cert mortgages, and whilst the advancement of broadband and the employment situation is likely to result in more people working for themselves these are the same people that will struggle to get finance when it comes to mortgages.
The accounts director for the group said: “The plight of the first-time buyer has been well highlighted but the self-employed have been equal victims of the shrinking mortgage market. Lenders have sought to de-risk their mortgage offering and anyone whose income is difficult to prove is by definition a higher risk customer.”
It has become very apparent that whilst some are hoping that lenders are easing restrictions on mortgage lending there are some groups, which include first time buyers, those with damaged credit, and self employed consumers, that are likley to continue suffering when it comes to mortgage avialability and affordability.
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