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    Really Interesting Finance News
    Sunday, 20 December 2020 07:08

    New Providers Of SelfCert Mortgages Starting in 2021

    In 2015, the people behind Quick Loans brought SelfCert Mortgages back to the UK. Now we learn that new SelfCert Mortgage providers are on their way in 2021.

    SelfCert Mortgages were great for social mobility. They were helping the Self Employed become part of the property-owning class. Despite the mainstream media myths, SelfCert mortgages were always one of the safest mortgage products around. Default rates were lower than any other mortgage method. Unfortunately, some politicians at the time found it convenient to try and link SelfCert with Subprime; they were two different things. Subprime was the service that brought down the house of cards.

    SelfCert.co.uk was launched in late 2015. Based in Prague, it could legally bypass the UK regulations on mortgages. It started with £30m in funding, enough for around 290-320 mortgages. The product was hugely successful for borrowers and the lender. The business received approximately 17,000 applications in less than 6 months. It was never the plan to turn SelfCert.co.uk into a mainstream lender. It was just a short term measure to test the theory, and it worked.

    Then came the vote for Brexit, and while we fully support Brexit, it made continuing with the mortgages a bit more of a gamble. Until a UK – EU deal on finance companies passporting their services across the continent is finalised, SelfCert.co.uk went on hold.

    This week we found out that new providers were going to be hitting the market in 2021. We know this because we were contacted for advice and asked about the pitfalls of opening up and operating under EEA rules. These new mortgage providers are not going to be based in the Czech Republic, instead, they will be based in another EEA country. Being in the EEA is crucial because it allows firms to Passport regulations from one jurisdiction to another, so long as they are not physically in that third party country (the UK).

    We don’t know how much insider information these providers have. Still, it seems clear to us that they are confident any trade deal struck between the EU and the UK, will involve reciprocal passporting rights for financial services.

    As soon as we are allowed to tell you who these companies are, we will post it on our site. We know there is a demand for these types of mortgages. SelfCert’s allowed people to refinance to cheaper deals, not just help those who want to move to a new property.

    This site will have no connection with any of the new lenders. Before last week, we had never heard the names of the people involved.

    Our news service is great because it pulls no punches and doesn't allow political correctness to interfere with our views.
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