Self certification borrowers feeling the pinch

Julia Harris, Mortgage Expert at Moneyfacts.co.uk comments: “Risk limitation is the key feature of many of today’s mortgage changes. Subprime was the first casualty, with vastly tightened credit criteria and rate changes. Now it seems that the self certification market, both for prime and sub-prime borrowers is also beginning to feel the pinch.

“By withdrawing products, increasing rates or requiring larger deposits lenders are displaying a risk aversion to self certificated loans in the current climate. Higher risk borrowers will be finding it increasingly difficult to secure a loan, 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.”