25-09-2007
Evidence of mis-selling found in UK sub-prime market
Evidence of mis-selling within the UK's sub-prime mortgage market has been uncovered by the BBC.
According to reports by the broadcaster, it has emerged that a number of sub-prime mortgage applicants have been advised to misrepresent their annual incomes when completing application forms.
Indeed, according to organisations within the sub-prime mortgage market, 50 per cent of loans are issued on a self-certification basis, which means that a borrower's income is not always verified.
"[We have] banned a number of brokers who have been involved in knowingly overstating the income of mortgage applicants," said the Financial Services Authority in a written statement to the BBC.
In related news, the International Monetary Fund has expressed concern over the health of the UK's sub-prime mortgage market, stating that it's current condition is somewhat similar to that in the US.
Do you own a buy-to-let property or are you thinking of becoming a landlord?
Simply Business offers a choice of full landlord insurance policies from leading lenders, as well as buy-to-let mortgages.
