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[Dusty]

There was talk on the television today about Self-cert Mortgages. These have now been given the rather unpleasant nick name of "Liar Loans".

As myself and Mr Dusty are both self employed, we needed to take out a self cert "Liar Loan" in order to buy another house.

This was 4 years ago now, and we have managed to keep up all the payments without problems, but I can see that a lot of people were unable to do this, and it has proved a big problem in the financial world today.

Basically in order to get the mortgage we had to embellish our financial situation, the same money was put in and taken out over and over again, loans were lent to us by family and friends, put in the bank account, and then taken out and given back again. All this in order to self cert the mortgage.

They were so easy to get it was unbelievable.

The mortgage broker told us before hand that he was to get £1100 for selling this mortgage to us from the bank. With this in mind he was more than happy to overlook any financial irregularities. Lets face it, he couldn't care less how we would pay the mortgage, all he wanted to do was sell it to us so he could have his commission.

The Banks actively encouraged this bonus mentality, which brings us to where we are now.

Mr Dusty and I have been able to keep our home with the aid of these so called "Liar Loans", but we know that to many it has been their downfall.

[STMO123]

There was talk on the television today about Self-cert Mortgages. These have now been given the rather unpleasant nick name of "Liar Loans".

As myself and Mr Dusty are both self employed, we needed to take out a self cert "Liar Loan" in order to buy another house.

This was 4 years ago now, and we have managed to keep up all the payments without problems, but I can see that a lot of people were unable to do this, and it has proved a big problem in the financial world today.

Basically in order to get the mortgage we had to embellish our financial situation, the same money was put in and taken out over and over again, loans were lent to us by family and friends, put in the bank account, and then taken out and given back again. All this in order to self cert the mortgage.

They were so easy to get it was unbelievable.

The mortgage broker told us before hand that he was to get £1100 for selling this mortgage to us from the bank. With this in mind he was more than happy to overlook any financial irregularities. Lets face it, he couldn't care less how we would pay the mortgage, all he wanted to do was sell it to us so he could have his commission.

The Banks actively encouraged this bonus mentality, which brings us to where we are now.

Mr Dusty and I have been able to keep our home with the aid of these so called "Liar Loans", but we know that to many it has been their downfall.

A lot of brokers actively encouraged people to lie, especially in the US. That's partly what started this mess. The FBI are having a good old delve as we speak.

[HolyCount]

Lending-wise the financial institutions have got it arse about face!

Instead of looking at income they should look at how much you can afford. Simplistically:  If you can afford £600 - 700 per month rent and have a track record of paying this sort of amount for a reasonable period of time, it would be reasonable to assume that you would be able to afford a similar mortgage repayment. Therefore work the equation backwards ....... £600 per month gets £xxx mortgage.

[Dusty]

Lending-wise the financial institutions have got it arse about face!

Instead of looking at income they should look at how much you can afford. Simplistically:  If you can afford £600 - 700 per month rent and have a track record of paying this sort of amount for a reasonable period of time, it would be reasonable to assume that you would be able to afford a similar mortgage repayment. Therefore work the equation backwards ....... £600 per month gets £xxx mortgage.

This is our 4th house. All the other 3 were all paid with main stream mortgages. But as soon as we became self-employed, they would not consider us even though we had a perfect payment record. Hence we had to go the self-cert way.

[Jay w]

i was looking to fix our mortgage when i first went self employed, i was looking to cover £80k, and with self cert we wouldhave been able to do this without any issues.

At the time i had about £15k in personal debt, i was told that the only way i couldget the loan was to add the 15K, thus taking it up to £95K, plus set up fees etc this meant i would have been close to £97K

i decided against it, instead the £15k is now paid and the house is slowly being paid off in chunks as well......

I didn't want to be paying for the credit cards and loans in 25 years time but the bank were pretty much insistant on it....

the lender would have been GMAC, who do they supply loan products to........

Bradford and Bingley i believe  

hmmmmmmm

[HerefordElite]

There was talk on the television today about Self-cert Mortgages. These have now been given the rather unpleasant nick name of "Liar Loans".

As myself and Mr Dusty are both self employed, we needed to take out a self cert "Liar Loan" in order to buy another house.

This was 4 years ago now, and we have managed to keep up all the payments without problems, but I can see that a lot of people were unable to do this, and it has proved a big problem in the financial world today.

Basically in order to get the mortgage we had to embellish our financial situation, the same money was put in and taken out over and over again, loans were lent to us by family and friends, put in the bank account, and then taken out and given back again. All this in order to self cert the mortgage.

They were so easy to get it was unbelievable.

The mortgage broker told us before hand that he was to get £1100 for selling this mortgage to us from the bank. With this in mind he was more than happy to overlook any financial irregularities. Lets face it, he couldn't care less how we would pay the mortgage, all he wanted to do was sell it to us so he could have his commission.

The Banks actively encouraged this bonus mentality, which brings us to where we are now.

Mr Dusty and I have been able to keep our home with the aid of these so called "Liar Loans", but we know that to many it has been their downfall.

this reminds me of the mortgage we got to first move into our present box - robbing broker took £1000 from us to just lie on the forms - absolute fraud , falsified where i worked and my income - but we had to do it at time

[Marks DTM Calib]

i was looking to fix our mortgage when i first went self employed, i was looking to cover £80k, and with self cert we wouldhave been able to do this without any issues.

At the time i had about £15k in personal debt, i was told that the only way i couldget the loan was to add the 15K, thus taking it up to £95K, plus set up fees etc this meant i would have been close to £97K

i decided against it, instead the £15k is now paid and the house is slowly being paid off in chunks as well......

I didn't want to be paying for the credit cards and loans in 25 years time but the bank were pretty much insistant on it....

the lender would have been GMAC, who do they supply loan products to........

Bradford and Bingley i believe  

hmmmmmmm

Ahhhh.....the generals financial arm

[Field Marshal Dr. Opti]

There was talk on the television today about Self-cert Mortgages. These have now been given the rather unpleasant nick name of "Liar Loans".

As myself and Mr Dusty are both self employed, we needed to take out a self cert "Liar Loan" in order to buy another house.

This was 4 years ago now, and we have managed to keep up all the payments without problems, but I can see that a lot of people were unable to do this, and it has proved a big problem in the financial world today.

Basically in order to get the mortgage we had to embellish our financial situation, the same money was put in and taken out over and over again, loans were lent to us by family and friends, put in the bank account, and then taken out and given back again. All this in order to self cert the mortgage.

They were so easy to get it was unbelievable.

The mortgage broker told us before hand that he was to get £1100 for selling this mortgage to us from the bank. With this in mind he was more than happy to overlook any financial irregularities. Lets face it, he couldn't care less how we would pay the mortgage, all he wanted to do was sell it to us so he could have his commission.

The Banks actively encouraged this bonus mentality, which brings us to where we are now.

Mr Dusty and I have been able to keep our home with the aid of these so called "Liar Loans", but we know that to many it has been their downfall.

this reminds me of the mortgage we got to first move into our present box - robbing broker took £1000 from us to just lie on the forms - absolute fraud , falsified where i worked and my income - but we had to do it at time

The mortgage brokers are quite happy to put misleading information on the forms (lies).The banks are well aware that this sort of thing goes on.............If people are paid big bonuses for performance.............then deception is sure to happen.

[Lizzie_Zoom]

There was talk on the television today about Self-cert Mortgages. These have now been given the rather unpleasant nick name of "Liar Loans".

As myself and Mr Dusty are both self employed, we needed to take out a self cert "Liar Loan" in order to buy another house.

This was 4 years ago now, and we have managed to keep up all the payments without problems, but I can see that a lot of people were unable to do this, and it has proved a big problem in the financial world today.

Basically in order to get the mortgage we had to embellish our financial situation, the same money was put in and taken out over and over again, loans were lent to us by family and friends, put in the bank account, and then taken out and given back again. All this in order to self cert the mortgage.

They were so easy to get it was unbelievable.

The mortgage broker told us before hand that he was to get £1100 for selling this mortgage to us from the bank. With this in mind he was more than happy to overlook any financial irregularities. Lets face it, he couldn't care less how we would pay the mortgage, all he wanted to do was sell it to us so he could have his commission.

The Banks actively encouraged this bonus mentality, which brings us to where we are now.

Mr Dusty and I have been able to keep our home with the aid of these so called "Liar Loans", but we know that to many it has been their downfall.

this reminds me of the mortgage we got to first move into our present box - robbing broker took £1000 from us to just lie on the forms - absolute fraud , falsified where i worked and my income - but we had to do it at time

The mortgage brokers are quite happy to put misleading information on the forms (lies).The banks are well aware that this sort of thing goes on.............If people are paid big bonuses for performance.............then deception is sure to happen.

Yep, and as you all state, including Dusty, this is why we are in the mess we are now in!!  

Greed has driven an awful lot of bankers, and without singling out Dusty because I was also very guilty of this, a lot of us as individuals have been into getting a 'better house', 'better car', nice holiday's abroad, etc, etc!  

Most of us have done it at some stage because we are only human and we (well few of us!! ) are not saints (I have only met one person who could be classed as this in every sense ).  We love acquiring lovely things and 'advancement' in our lives, trying to gain a better standard of living.

However it is all coming home to roost now, and whatever happens next it must change  (well until we forget all about this crisis!! .