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vetran
12th May 2014, 08:25
Want a mortgage? Don't eat steak! Revealed: Bizarre questions in new home loan crackdown | Mail Online (http://www.dailymail.co.uk/news/article-2625808/Want-mortgage-Dont-eat-steak-Revealed-Bizarre-questions-new-home-loan-crackdown.html)


Want a mortgage? Don't eat steak! Revealed: Bizarre questions in new home loan crackdown
Mortgage applicants asked about price of haircuts and if they play golf
Plans to have more children and hopes over pay rise also covered
'Spanish inquisition' style questioning lasts up to three hours
Is a response to market review by Financial Conduct Authority
Some mortgage offers halved and others reduced by £100k in new rules

you think it will work?

OwlHoot
12th May 2014, 10:48
If credit is scarce, anyone needing a big loan must dance to the tune of those holding the moneybags and is competing with other would-be borrowers.

In a way it's only reverting to the situation 40 or more years ago when people seeking a mortgage were interviewed by some patronising Captain Mainwairing style bank manager and had to show evidence of consistent saving and good conduct of their financial affairs.

original PM
12th May 2014, 11:13
it makes sense - just come some jonny come lately has managed to blag a position on £xx salary it does not mean he/she is a good bet for a long term financial loan

and a trend especially more prevalent now is people putting their own luxuries ahead of paying of their debts each month.

OwlHoot
12th May 2014, 11:31
just come some jonny come lately has managed to blag a position on £xx salary it does not mean he/she is a good bet for a long term financial loan ...

These days you could say that about practically anyone who needs a mortgage.

I mean how secure is any salaried person's job, or the contract market?

original PM
12th May 2014, 11:39
These days you could say that about practically anyone who needs a mortgage.

I mean how secure is any salaried person's job, or the contract market?

That is true however you do get people who get a jump in salary and suddenly start living way above what they were used to but then they get found out for the skills they have an drop back to their previous salary - at which point they are fooked because they have mortgaged themselves out of the picture....

e.g. I would always check what salaries people have been on for past 3-5 years and not just in last 12 months.

original PM
12th May 2014, 11:46
Shall we expect a return to the "you've got save with us for at least a year before you have any chance of getting a mortgage" days?

I would say yes but that would imply I expect the banks to do something other than spend all our money and then expect to be given lots of tax dollars to bail them out..

ffffffffuuuuuuu

BrilloPad
12th May 2014, 11:48
What is to stop one lying?

original PM
12th May 2014, 11:50
Nothing - and now the papers have got onto it anyone looking for a mortgage will just tell the bank they live like a puritan so it makes no difference.

In fact I am sure when I got my first mortgage (about 17 years ago..) I pretty much had to go through my monthly outgoing to see how much I could afford to repay....

It seems I may have underestimated my weekly beer intake looking back

:happy

Power Mortgages Ltd
12th May 2014, 15:01
The press have (as you would expect) blown this way, way, way (and some more) out of proportion.

It doesn't take 3 hours to go through the budget planners, they do not care where or how often you get your hair cut and certainly don't mind if you eat steak or not?!

Most lenders still use a set average 'cost of living' figure provided by ONS to calculate the rough costs of things like food, clothing and utility bills and it is only things like pension contributions, student loan deductions and child care which they are asking about now where they may not have asked beforehand.

The biggest issue I have come across is that most lenders will now ask for proof of retirement income if you are choosing to take the mortgage past the state retirement age (SRA) regardless of whether you actually intend to retire when the state thinks you should. So no longer can you simply say "I intend to work up until age 70 and my working income will support the mortgage up until this age". They will now expect you to prove that the pension income you may or may not get past your SRA is sufficient to support the mortgage. Therefore if you are 39 you can no longer get a mortgage over 30 years.

I have not yet seen a lender who has asked for details on how much you are spending on your haircuts. It is just sensationalised journalism

OwlHoot
12th May 2014, 15:06
now the papers have got onto it anyone looking for a mortgage will just tell the bank they live like a puritan so it makes no difference. ...

These days unless an applicant is minted, they'd have to live like a puritan for quite a while anyway before being granted a mortgage.

Like it or not, credit reference data tells a mortgage provider all it needs to know about the real picture of an applicant's finances, whether they fib or not.

Even if an applicant has no recent missed payments or defaults etc, there are all sorts of adverse indicators such as being in hock for most of one's available credit or just a trend of decreasing its amount over recent months.

NickFitz
12th May 2014, 15:49
As it's a DM link I assume it's all bollocks anyway, but FWIW, the supposed link between saturated fat consumption and heart disease has been thoroughly discredited within the last few months: The Questionable Link Between Saturated Fat and Heart Disease - WSJ.com (http://online.wsj.com/news/articles/SB10001424052702303678404579533760760481486)

OwlHoot
12th May 2014, 16:35
As it's a DM link I assume it's all bollocks anyway, but FWIW, the supposed link between saturated fat consumption and heart disease has been thoroughly discredited within the last few months: The Questionable Link Between Saturated Fat and Heart Disease - WSJ.com (http://online.wsj.com/news/articles/SB10001424052702303678404579533760760481486)

So another official taboo bites the dust. You'd think people would be more skeptical about these by now, especially the better-educated people who tend to take the most notice of scientific pronouncements and buy into an apparent consensus like a lot of brain-washed sheep.

How long before scientists generally admit, as some reputable scientists argue already, that smoking isn't as bad for most people as Governments and health nazis maintain?

True _some_ people may be vulnerable to tobacco smoke, just as some probably are to saturated fats, and some to vanilla ice cream come to that.

VectraMan
12th May 2014, 16:43
In fact I am sure when I got my first mortgage (about 17 years ago..) I pretty much had to go through my monthly outgoing to see how much I could afford to repay....

I remember having to do that for a £5K car loan. Never had a mortgage, but I just assumed it would be the same.

VectraMan
12th May 2014, 16:44
As it's a DM link I assume it's all bollocks anyway, but FWIW, the supposed link between saturated fat consumption and heart disease has been thoroughly discredited within the last few months: The Questionable Link Between Saturated Fat and Heart Disease - WSJ.com (http://online.wsj.com/news/articles/SB10001424052702303678404579533760760481486)

That's a really good read.

Sysman
12th May 2014, 18:44
Let them eat cake caviar.

:smokin

<ZG in Marie Antoinette mode>

FTFY