ThomasCharles
Lenders don't or at least not supposed to lending without proving income…
But how far do you go? You have to believe what an applicant tells you, unless you have reason not to. All lenders (for true self cert) ask applicants to sign a declaration to declare what they say about their earnings are correct.
When a auxiliary nurse tells you that she earns 45 grand in wages and 20 grand on ebay… well you can assume she is not telling the truth – however if a jobbing builder tells you that he earns 45 grand a year and 20 grand a year leasing equipment to other builders. Why would you disbelieve them, if they are registered with the tax office and they sign a declaration?
Borrowers have to take responsibility for what they borrow, and ensure they will have the funds available to pay back what they borrow over the term of the loan.
Most ‘self cert’ deals go through to completion without anyone telling porkies (well, perhaps to the tax man anyway) – the ones that shouldn’t complete, are the ones where the applicant is encouraged by the lender/broker to lie about how much they earn to fit the lenders criteria.
Self cert works ,and will continue to do so, in the right circumstances.
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