Families who take foreign holidays, splash out on subscriptions or buy expensive presents to mark birthdays or Christmas face being turned down for a mortgage.
The new rules from one of the biggest banks will penalise any applicant deemed to be extravagant.
Santander – which is the nation’s second largest lender of mortgages – is the first to introduce the intrusive guidelines. But last night experts said they feared other banks and building societies will follow suit.
Matt Griffith, a spokesman for Priced Out campaign group for affordable homes, said: ‘This is ridiculous – no one fails to repay their home loan because they buy gifts for their grandma.
‘Banks are constricting lending to first-time buyers while concentrating on the richer pickings of equity-rich homeowners and investors.
As banks scrabble to preserve cash, it seems like we are on the verge of another mortgage crunch.’
The Spanish bank’s questions on occasional spending are far in excess of what is officially demanded by the Financial Services Authority.
There was uproar when the City watchdog originally proposed analysing every aspect of household spending but it later concluded only regular spending on essentials and bills needed to be taken into account.
Santander’s decision will put a further squeeze on home loan lending at a time when getting a mortgage is already far from easy.
Source: Want a mortgage? Tell us what you spend on presents: Bank delves deeper into our personal lives to penalise extravagance | Mail Online
Phew, sasguru is safe!!!
The new rules from one of the biggest banks will penalise any applicant deemed to be extravagant.
Santander – which is the nation’s second largest lender of mortgages – is the first to introduce the intrusive guidelines. But last night experts said they feared other banks and building societies will follow suit.
Matt Griffith, a spokesman for Priced Out campaign group for affordable homes, said: ‘This is ridiculous – no one fails to repay their home loan because they buy gifts for their grandma.
‘Banks are constricting lending to first-time buyers while concentrating on the richer pickings of equity-rich homeowners and investors.
As banks scrabble to preserve cash, it seems like we are on the verge of another mortgage crunch.’
The Spanish bank’s questions on occasional spending are far in excess of what is officially demanded by the Financial Services Authority.
There was uproar when the City watchdog originally proposed analysing every aspect of household spending but it later concluded only regular spending on essentials and bills needed to be taken into account.
Santander’s decision will put a further squeeze on home loan lending at a time when getting a mortgage is already far from easy.
Source: Want a mortgage? Tell us what you spend on presents: Bank delves deeper into our personal lives to penalise extravagance | Mail Online
Phew, sasguru is safe!!!
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