Tim Worstall

Well, Fancy That!

Stunning news:

Some
mortgage brokers are still letting self-employed borrowers inflate
their salaries to obtain bigger home loans, according to a report by
the financial watchdog.

The
FSA said its study into self-certification loans, which allow borrowers
to estimate their income without supplying documentation such as wage
slips, found "significant weaknesses" in brokers’ advice and selling of
the loans.

A
mystery shopping exercise found three out of 41 firms "prepared to
discuss with clients how they could inflate their salary". There was no
evidence the practice was widespread or systematic.

Next week look for the reports on how your home is at risk if you do not maintain the payments on your mortgage, how kittens are cute and water is rumoured to be wet.

In

2 responses

  1. embutler Avatar
    embutler

    5 years ago I boutght a house with a mortgage and had to show pay receipts ,w2 forms and prove I has blood pressure too..

    Reply
  2. james C Avatar
    james C

    Last summer, I was minding my own business at a local cafe when a rather flash gentleman sat down at the next table. He seemed to be familiar, and I realised I had seen him on a reality TV show perhaps five years earlier. He then was an estate agent. Then his mate (a local estate agent), and another guy arrived.
    They were discussing a buy to let venture. The conversation turned to how much the third guy should pretend he was earning, when he applied for his self-certify mortgage.
    A scene from London life.
    James C

    Reply

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