Saturday, 20 February 2016 10:00

Risky Unsecured Self Cert - OK, Low Risk Secured Self Cert - Bad

Are we missing something? This is a question that we often ask ourselves after reading some of the articles that appear in the media. 

For us it is sometimes like we're living in a parallel universe, a universe where people ignore facts staring them right in the face. This week was one of those weeks, we don't usually have time to read articles people write about us. This week however we sat down and read one or two from so-called industry experts.

These articles went into great detail about how Self Cert was a very bad way deciding who should get a mortgage and shouldn't.

What we need point out that Self Cert is not banned in the UK, it isn’t and never has been. People should remember this because it is a myth.

Self Cert is still around for all the more riskier debt, riskier debt includes credit cards, includes payday loans, and includes standard bank loans. There are literally billions of pounds of risky debt taken out each year using the Self Cert method of approval.

The less riskier type of lending that is secured lending on property with a significant deposit, using the Self Cert method of approval is banned in the UK.

Wait a minute, doesn't this sound up to you?

You can get riskier debt by using self cert, you can't get safer type of debt using self cert.

That's what really is odd about the negative comments we are receiving. These experts are turning a blind eye to the elephant in the room taking potshots at us. If Self Cert really is that bad, and irresponsible - why not ban it completely from the UK market.

Make credit card companies ask to see payslips before they open an account. Inform banks that they can only lend to their own customers unless they see payslips. All these would be a much better place to start in our opinion if the model is flawed.

If Self Cert is an irresponsible method of obtaining credit, then there are far bigger targets than us to take shots at first. According to figures from PWC, there is around £239bn in unsecured debt in the UK and how much of this do the experts think was taken out using the Self Cert method of approval?

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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