A recent report has suggested that the days of self cert mortgages could be coming to an end, as lenders become increasingly cautious and stringent with regards to who they will lend to in what has become a very volatile and difficult financial climate.

Bank of Scotland and BM Solutions are two of the lenders that have recently pulled out of the self certification mortgage market, and as was the case with 100 percent and 125 percent mortgages, it looks as though many other lenders may follow suit.

GE Money and first National also recently pulled out of the self certification mortgage market, and this means that those looking for a self cert mortgage will have even less choice than previously, and choice was already limited in the self cert mortgage market. The Mortgage Works and Britannia both have subsidiaries that offer self cert mortgages, but these are now the only ones that offer this sort of mortgage.

One industry official said that the future looked bleak for the self cert mortgage sector, stating: “I would expect we will be receiving an email from Platform and TMW announcing that they have either pulled out of self cert or at least changed their criteria. It’s a shame because self cert is a key sector of the mortgage industry, if it is done properly. I doubt anyone will have the appetite to lend self cert now and I would think the sector will go the way 100 per cent mortgages went last year.”

In the meantime many industry officials have predicted that mortgage lending will become even more restricted over the course of this year, as lenders struggle to raise finance and continue to increase stringency with regards to who they will lend to in the current difficult financial market.

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