One key casualty of the 2008 credit crunch and property crash, the "self-certified mortgage", is staging a comeback. Often referred to as "liar loans", these mortgages were traditionally given to people without proof of regular income, such as the self-employed or those who did contract work. As the name suggests, all that was required to get one of these mortgages was to declare your income, with little or no need for proof.
The abuse of these loans has been blamed for contributing to the financial crisis at the height of the boom in 2007, they accounted for more than 50% of new lending and so they have since been effectively banned by the watchdog, the Financial Conduct Authority (FCA), under rules designed to prevent people from taking on unaffordable mortgages.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Annual house price growth halves to 3.5% – ONSAverage UK house prices rose by just 3.5% in the 12 months to April, as stamp duty changes deterred buyers. What’s the outlook for the rest of 2025?
-
Nationwide pays £100 to millions of people – have you received the payment?Nationwide has started paying its £100 Fairer Share bonus and expects to complete payments by 4 July. We look at who will get it and when.
-
Santander launches best easy access savings rate in 14 yearsSantander launches market leading easy access savings rate, but you’ll have to act fast if you want to take advantage - we have all the details
-
Bank of Baroda closes doors to UK retail bankingAfter almost 70 years of operating in the UK, one of India’s largest bank is shutting up shop in the UK retail banking market. We explain everything you need to know if you have savings or a current account with Bank of Baroda
-
The rise and fall of finfluencers as FCA clamps down on poor adviceFCA clamps down on ‘finfluencers’ - but will it protect consumers from ‘bad advice’? Kalpana Fitzpatrick looks at the rise and fall of finfluencers
-
Lloyds, Santander and HSBC hike savings ratesBanks and building societies have been raising their savings rates as the base rate continues to rise. Our round-up of all the savings rates hikes.
-
FCA: Banks with lowest savings rates to face “robust action”The regulator has unveiled a new 14 point plan that will force savings providers to justify low interest rates on easy access savings accounts - will your savings get a boost?
-
Watchdog summons banks to explain paltry savings ratesSavings rates trail mortgage rates - and the financial watchdog has summoned banks to a meeting amid concerns of profiteering.
-
Consumer Duty: how the rules are changing financial services - and what they mean for youConsumer Duty rules came into force almost a year ago, aiming to put customers’ needs first - but have they made a difference?
-
Mortgage help from today: lenders pledge more help as rates soarBanks and building societies have agreed to offer more flexibility to homeowners struggling with rising mortgage rates. We explain what mortgage help that’s been announced
