BoS increases self-cert limit

Amanda Jarvis

January 23, 2006

Along with an increase in the limit, Bank of Scotland has launched two new fixed rates of self cert products, aimed at High Net Worth customers and those with complex needs.

Since 2000 the number of self-employed in the UK has risen by from 11.8 per cent to 12.7 per cent of the total workforce. Since 1997 the number of new business start-ups has increased by 31per cent in London and the South East alone.

Whereas many individuals within this market earn significant sums of money overall, their income may not be consistent month by month due to bonus payments and commission for example. This means that compiling Proof of Income information can be time consuming – they can’t just produce wage slips or a P60 like those applying for a mainstream mortgage.

Therefore for applications where a Self-Certification product is appropriate for the borrower, there is no requirement for traditional proof of income, speeding up the process for the broker and borrower.

The £1 million Self-Certification product is available on mortgages of up to 75 per cent LTV. All mortgage applications are handled by Bank of Scotland’s premier team, based in Edinburgh. A senior underwriter is assigned to each loan application for £500k or more, who then supports the intermediary in a variety of ways throughout the application process – for example they can advise on underwriting criteria during the preparation of the application.

Any complex applications can also be individually underwritten at the bank’s specialist intermediary mortgage centre in Edinburgh.

In addition to the new £1 million Self-Certification product, a new range of self cert products will be launched on 24 January which will help to utilise this new lending limit.

The first new fixed rate is a 2 year fixed at 4.89 per cent to 75 per cent LTV, arrangement fee £599 and early repayment charge 4 per cent to 30 April 2007, 3 per cent to 30 April 2008.

The second is a 3 year fixed at 4.89 per cent to 75 per cent LTV, with no arrangement fee and an early repayment charge of 5 per cent to 30 April 2009.

Charles Haresnape, managing director of Bank of Scotland Mortgages, said:

“The Self-Certification market will continue to grow this year, and Bank of Scotland’s new £1m limit means it really is positioned to cater for all needs, no matter how complex. The introduction of this new product demonstrates our commitment to providing intermediaries with the tools they need to service the complex requirements of such clients.”

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