The multibillion-pound self-certification mortgage industry, in which customers are not required to provide proof of income, is set to be banned by the financial regulator.
Dubbed "liar's loans" by critics, self-cert loans were blamed for playing a large part in the housing bubble and ensuing financial crisis, according to The Times. The Financial Services Authority (FSA) is effectively planning to kill off self-cert home loans by introducing a rule compelling lenders to insist that customers provide evidence of their income. See story...
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