Self-Cert Loans to get the Axe

The Financial Services Authority is closing in on self-cert loans.  In a new plan it is expected to change the way in which lenders handle applications.  Self-cert loans are seen as one of the number one reasons for the banking meltdown, thanks to their loose criteria: applicants were not required to prove their income…leading to high levels of lying and defaults.

Now, the amount of new self-cert loans are close to zero, with but one lender still offering them.  The FSA is set to outlaw self-certification so that lenders must ask for full proof of income from borrowers.

Is this fair enough given the last few years or are self-employed and irregular income households being pushed back to the back of the queue?

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