Released on: September 25, 2007, 7:26 am

Press Release Author: Charlotte Burrows

Industry: Real Estate

Press Release Summary: People on low incomes are being encouraged to lie when
applying for self-certification mortgages.

Press Release Body: That is according to a BBC Radio Four programme to be aired
tonight (September 25th).

The show will highlight how so-called \'predatory lenders\' tell borrowers to lie
about their income in order to get a bigger mortgage.

However, this inevitably leads to financial difficulty for many and as a result an
increased number of home repossessions.

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\"You\'re seeing a feeding frenzy in the market, you\'re seeing fierce competition
because the lenders of the financial services companies are killing themselves to
get market share,\" Mick McAteer, a financial inclusion advisor told BBC Radio Four\'s
\'Today\' programme.

\"And to cap it all really you have very, very weak regulation at a time when
possibly millions of people are vulnerable to interest rate rises and may have been
mis-sold mortgages.

\"And I think it\'s about time the FSA [Financial Services Authority] took tough
action and enforced action against these predatory lenders,\" he added.

Problems such as this can lead to fewer people entering the property market as trust
is lost in the system.

In turn, this leads to a lack of demand for housing and property prices almost
inevitably fall making a quick property sale desirable.



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