Did Self Cert's Cause The 2008 Crash?

They may have been to blame but we have never seen any evidence of it. We have spent a lot of time trying to find anyone with data showing Self Cert Defaults v Mainstream Mortgage Defaults in the run up to 2008, and even post 2008.

Whenever we ask for data, the term mysteriously switches from “Self Cert” to “Sub Prime”. They seem to have plenty of data for that. Sub Prime is totally different from Self Cert and they know that, or at the very least should know that.

In our opinion the Self Cert problem is a very common widespread myth to divert the attention away from those who really were to blame. Whether that was a deliberate or accidental deception is not something we really have any evidence for.

Self Cert was one very small part of what was occurring in the years preceding 2008. Unfortunately with a little bit of spin, politicians and bankers somehow managed to use it to shift the blame for the crash onto the poorest in society. 

As big believers in personal responsibility, some of the people, those that defaulted due to borrowing too much do have to take a share of the blame, but take the blame for themselves being homeless - that is where their blame and indeed their punishments should end in our opinion. Blaming them for global meltdown is ridiculous.

There were of course other factors which made the crash much more severe than ever needed to be. Lenders giving out 125% loan to value mortgages were just asking for trouble, lenders doing "interest only" was also very risky. Huge fraud in the over valuation of properties, people that never existed obtaining mortgages. 

All these seem to have been conveniently swept under the carpet.

We could break everything down into parts, left and right, here and there but ultimately the crash was caused because an environment was artificially created where people benefited pure from selling something - not getting paid back.

We are talking about mortgage brokers, we are talking about bankers rolling up mortgages into a giant pot and swapping them between each other, credit agencies describing their clients as A+ ratings because they feared losing their business - the list goes on and on. All of these resulted in great profits without a loan ever being repaid. 

After they were sold they were someone else's problem. 

This is the philosophy that caused the crash; we are not bringing back this mindset regardless of what is being said about us being irresponsible. Unlike those incidents of 2008, we only make money if the loans get repaid. We don’t lend anyone else’s money, we don’t have outside investors.

In conclusion, the 2008 crash was not simply a failure of Self Cert Mortgages (some call Liar Loans), If they were then someone please show us the evidence of the number of Self Cert products that went bad.

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Self Cert is not based in the UK. We are NOT regulated by the Financial Conduct Authority

Prague 1, Czech Rep