self certificate

[tali122]

arnt self certificate mortgages rather risky for the lender?( irresponsibly? lending loads of cash with no real proof) what are the hidden dangers for the borrower ?as ive seen intrest rates as low as 4.49% and with a 95% ltv, it seems a case of having your cake and eating it. Im not on about the borrower financially stretching themselves but hidden terms/conditions/exclusions /exemptions that are disadvantages in self cert mortgages(not self employed)

[Mrs_Pegasus]

When we looked into this we had to find 25% of the deposit. Then we would have had to take out an indemnity insurance which would have protected the lender for 75% of the value of the property. Therefore, if you fail to pay, the lender can claim their 75% and you lose your 25%!!!