No more self verified income mortgages

Mortgage loans using self-verified income are no longer available in the market. According to BMM’s managing director Murray Cowan, changes to the Low Doc market as a result of the new national credit code were a positive for the industry as it was clear that low doc loans had moved away from its traditional purpose of assisting self-employed borrowers in recent years.

“No Doc or asset lend style loans with little or no income verification became popular in times of rising asset prices but these loans were designed to assist investors and not specifically self-employed borrowers and are no longer acceptable under the code”, Mr Cowan said.