| Self Certification for a loan is essentially the | | | | several lenders are predicting huge losses. This |
| method whereby a client self declares their | | | | has had a knock on effect, with other lenders |
| income. This may occur when a client is self | | | | finding their funding lines now being curtailed or |
| employed, or is employed but also has an income | | | | even withdrawn. The overall effect is that is it |
| derived from work outside of their normal | | | | now more difficult to obtain a self certification loan |
| employment. Many lenders, especially in the | | | | the before. The main problem is that many |
| current market, are somewhat weary of this | | | | lenders have reduced the Loan to values ( LTV ) |
| type of income. Issues regarding affordability | | | | to no more than 70%. This coupled with the |
| have taken centre stage in recent months, with | | | | decrease in house prices that many are predicting |
| many lenders falling foul of loans going into | | | | means that if your client is already over the 70% |
| delinquency due to missed payments. This has | | | | LTV with their current first charge, their options |
| been particularly relevant in the US market, where | | | | are somewhat limited. |