Almost half a million home owners now find themselves stuck on higher mortgage rates, after self-certifying between 2007 and 2010.

Rates are at an all-time low, with many taking advantage and securing a record-breaking fixed rate mortgage to keep their payments as low as possible.

However, those that chose to take the self-certification route have found they are unable to take advantage of any of the market-leading rates being offered by high street lenders.

While they are now banned, when available, self-certified mortgages targeted those who faced the challenge of ‘proving’ their income, such as the self-employed or contract workers who had irregular earnings.

Ray Boulger from John Charcol brokers has said that many of these borrowers were still unable to ‘prove’ their income and – combined with the tighter affordability criteria that lenders apply following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review in April 2014 – were unable to remortgage to a better rate.

It is now a requirement of the Financial Conduct Authority (FCA) that all mortgage advisors be suitably qualified, undertaking the relevant CeMAP training and achieving a pass rate in the end exam to gain a competent status. Once qualified, you will be able to conduct customer meetings and recommend mortgage solutions.

In order to remain compliant and meet the regulatory standards set by the FCA, you will be required to carry out a full affordability assessment, analysing the customers’ income and expenditure, as well as documenting proof of how the figures were obtained. This is where those who have previously self-certified are now challenged.

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