The Times - ‘Liar loans’ are making a comeback

by Aaron Strutt

Nov 13 2015

The “liar loans” outlawed by the City watchdog are returning to the UK through an internet lender who plans to lend borrowers as much as they want — as long as they look all right on social media.

Aaron Strutt, of Trinity Financial, says: “Lenders were forced to pull out of the self-cert market because the system was abused and many borrowers secured unaffordable mortgages. A return could result in homeowners struggling to pay their debts when the base rate finally rises — or even lose their home.

“While the new, stricter affordability criteria has been difficult for many people that have perhaps failed to get the mortgage they want, affordability checks ensure that people don’t take on debt they can’t afford.”