Tweet
Mortgage lender targets the unemployed
Mortgage lender targets the unemployed
This is a duplicate of the Blog Entry made on: 29th July 2016 16:16
This is a duplicate of the Blog Entry made on: 29th July 2016 16:16
.......in a bid to bring back sub-prime 'liar loans
Liar loans are back. Less than 10 years after the cataclysmic implosion of the western world's economy as a result of risky lending to borrowers who couldn't pay, a lender has launched with the slogan 'no job, not a problem'. Unemployed Loans, a lender which promises to bring back self-certification mortgages, boasts on its website that it is able to defy UK regulators and offer loans to those without a job and who are unable to prove their income. On its website the firm says: '99 per cent of lenders won't lend to the unemployed. We do! We are not based in the UK, by being based abroad we are able to make our own decisions. One of those decisions is to bring back self cert mortgages.' Self-cert, dubbed 'liar loans' at the height of the financial crisis, allowed borrowers to apply for a mortgage without 'proving' their income. They became known as NINJA loans - no income, no job, no assets. They were a disaster - Lehman Brothers collapsed as a direct result of massive over-exposure to complicated and opaque 'packaged' products that essentially failed to pay investors because the underlying mortgages were duff. Source
Liar loans are back. Less than 10 years after the cataclysmic implosion of the western world's economy as a result of risky lending to borrowers who couldn't pay, a lender has launched with the slogan 'no job, not a problem'. Unemployed Loans, a lender which promises to bring back self-certification mortgages, boasts on its website that it is able to defy UK regulators and offer loans to those without a job and who are unable to prove their income. On its website the firm says: '99 per cent of lenders won't lend to the unemployed. We do! We are not based in the UK, by being based abroad we are able to make our own decisions. One of those decisions is to bring back self cert mortgages.' Self-cert, dubbed 'liar loans' at the height of the financial crisis, allowed borrowers to apply for a mortgage without 'proving' their income. They became known as NINJA loans - no income, no job, no assets. They were a disaster - Lehman Brothers collapsed as a direct result of massive over-exposure to complicated and opaque 'packaged' products that essentially failed to pay investors because the underlying mortgages were duff. Source
Comment