Effects of self-cert withdrawal continue

16/11/2009

Mortgage lender Platform has announced further changes to the products on offer to the public, following its withdrawal from the self-certification market.

Platform, the intermediary lending unit of The Co-operative Bank, has reduced the APRs on its two- and three-year trackers and its three-year fixed deal.

The firm had previously been the last lender to offer self-certification products to borrowers.

A fortnight previous to this announcement, the Financial Services Authority (FSA) had proposed an outright ban on the so-called "liar loans", which do not require a mortgage borrower to provide independent verification of his or her income.

The City regulator wants to tighten regulations across the mortgage market in order to promote sustainable borrowing and limit the likelihood of future house price bubbles from occurring.

The FSA took over regulatory oversight of the retail operations of UK banks from the beginning of November 2009.

Mortgage lending as a whole has tightened considerably as a result of the credit crunch, with latest figures from the Council of Mortgage Lending showing that gross borrowing is down by 26 per cent year on year.

Tags; Housing Debt and Bills, Young Family Finances,

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