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Risky Borrowers Such As Property Developers Can't Get Loans

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http://business.timesonline.co.uk/tol/busi...icle6797069.ece

From The Times

August 15, 2009

Mortgage lenders turn backs on those in ‘risky’ businesses

Rebecca "Becky" O’Connor, Property Correspondent

Mortgage lenders are routinely blacklisting buyers according to their occupations, with applications from workers in property and finance at the top of the reject pile...../

Applications from property developers would be declined in 95 per cent of cases, according to Knight Frank Finance, while estate agents, surveyors and — ironically — mortgage brokers, also face greater scrutiny of their financial affairs than those in lower-risk jobs, such as doctors and accountants.

Simon Gammon, of Knight Frank Finance, said: “The biggest hit has been for workers in the property industry. Next are investment bankers, although it depends which bank.â€

When Kirsty returns this Autumn *with her property investing hype show the business will be all over bar the reposessions.

______________________

*Before a deep winter for the property market sets in.

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Indeed, occupation and industry were important in the risk assessment in the last recession.

people on good salaries in the wrong trade could be left wondering why they are rejected.

banks...they are always the fracking same. they perport to be your friend....dont be fooled.

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One investment banker said: “I applied for a 65 per cent loan for £650,000 from RBS for a five-bedroom detached house in Essex. It was a bit of a surprise to be rejected. Even though my salary is six figures, a significant part of that is a bonus. I can understand why lenders are doing what they are doing, but ultimately they will lose out if they don’t lend to big earners in the City. The culling at my bank has now finished, so I should be safe.â€

:lol::lol::lol:

Karma's a b*tch!

Edited by For no one

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Guest KingCharles1st

Something around here is starting to smell-

- none of this any longer makes sense.

Are the really important ones waiting for a change in UK Government before they commit to anything? Would YOU go with the plans of a complete fruitcake, knowing he has LESS THAN A YEAR LEFT IN POWER..?

(Thank God)

Edited by KingCharles1st

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http://business.timesonline.co.uk/tol/busi...icle6797069.ece

From The Times

August 15, 2009

Mortgage lenders turn backs on those in ‘risky’ businesses

Rebecca "Becky" O’Connor, Property Correspondent

Mortgage lenders are routinely blacklisting buyers according to their occupations, with applications from workers in property and finance at the top of the reject pile...../

Applications from property developers would be declined in 95 per cent of cases, according to Knight Frank Finance, while estate agents, surveyors and — ironically — mortgage brokers, also face greater scrutiny of their financial affairs than those in lower-risk jobs, such as doctors and accountants.

Simon Gammon, of Knight Frank Finance, said: “The biggest hit has been for workers in the property industry. Next are investment bankers, although it depends which bank.â€

When Kirsty returns this Autumn *with her property investing hype show the business will be all over bar the reposessions.

______________________

*Before a deep winter for the property market sets in.

I don't understand what these people don't get, Property is still a high risk to lenders and the lenders are playing safe as they have just been biten big style by lending on overpriced property. Simple

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One investment banker said: “I applied for a 65 per cent loan for £650,000 from RBS for a five-bedroom detached house in Essex. It was a bit of a surprise to be rejected. Even though my salary is six figures, a significant part of that is a bonus. I can understand why lenders are doing what they are doing, but ultimately they will lose out if they don’t lend to big earners in the City. The culling at my bank has now finished, so I should be safe.â€

Jesus Christ, with that sort of financial acumen, is it any wonder we got into this mess?

Quite apart from which, 6 figures, with a significant part of that as bonus, does not make him a big earner in the city.

Edited by Crash Gordon

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I don't understand what these people don't get, Property is still a high risk to lenders and the lenders are playing safe as they have just been biten big style by lending on overpriced property. Simple

:rolleyes:

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