Self-certification mortgage market 'opening up'

17 July 2007
UK borrowers are likely to see more options in the self-certification mortgage market, according to an industry observer.

Andrew Strange, policy analyst at the Association of Mortgage Intermediaries (AMI), noted that there is an expanding range of borrowing options available to people with unconventional incomes.

He cited the example of Halifax, which does not provide self-certification mortgages but instead is "increasingly … going down a risk-based approach to lending".

Mr Strange compared Halifax's approach to that of lenders offering self-certification mortgages and having strict minimum requirements about length of self-employment, for instance, regardless of credit rating and other variables.

As a result, the policy analyst described the UK mortgage market as "the most innovative in Europe", adding that the retail distribution review is providing evidence of this statement.

He also suggested that lenders are adapting their products in order to meet the needs of borrowers, saying: "Things are always changing and improving."

The AMI is a not-for-profit organisation representing mortgage intermediaries.

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