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New Fsa Mortgage Guidelines - A Close Look At Lifestyle Spending

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Getting a mortgage is about to get tougher. Some nice bear food for 2011 :)

Read on....

Mortgage applicants could be penalised for taking out a gym membership or making too many shopping trips, it emerged last night.

Under new guidelines to be introduced this year, application forms may become a lot more intrusive.

The proposals from the Financial Services Authority are meant to ensure a customer can afford the loan repayments.

But experts fear the changes will turn the hunt for a home loan into a nightmare for millions.

A lender will typically ask to look at between three to six months of bank statements to analyse exactly what people spend their money on.

At present regular commitments, such as utility bills and council tax, are taken into account but in future this could be widened to include leisure spending.

It means that anybody seeking a mortgage could be penalised for taking foreign holidays, being a member of a gym or making too many shopping trips.

Ray Boulger, of mortgage broker John Charcol, said: ‘Mortgage application forms will be a lot more intrusive.

‘The FSA is effectively saying that lenders will have to assume that borrowers will keep spending in the same way they have previously.

‘But many people spend a lot more before they have the commitment of a mortgage and then cut back accordingly.’ The country is already in the grip of a home loan famine, with less than 50,000 handed out every month, compared to nearly 135,000 just a few years ago.

It is feared that if the FSA’s Mortgage Market Review is implemented in its current form then up to one in five people could be ineligible under its stringent rules.

http://www.dailymail.co.uk/news/article-1343140/Why-going-gym-scupper-chances-getting-mortgage.html?ITO=1490

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Lucky that hookers and drug dealers don't take debit cards then eh?

Heh my bankstatements look funny too since I have ZERO spends on the debit card. I'm irritating enough to take money out or stick it to paypal (boo hiss!) to pay somebody thus all you get are cash withdrawls and paypal. It's handy because there is a cash machine near where I fill up with gas and buy food too.

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You have to play the game, like I said to a friend of mine.

He owns a small successful company but has never had any form of bank loans or credit cards and has family mortgage

Recently he decided the business needed to lease a van, but because he was not on the grid so to speak it was a total fail.

He had to do it with his dad as co signatory even tho the company turns over £80k pa

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The proposals from the Financial Services Authority are meant to ensure a customer can afford the loan repayments.

Yet ray boulger, michael coogan and the dickheads from CML amongst others would rather lend to those who can't afford it, as it's more profitable for them.

They don't care if the debtor defaults because the taxpayer will just foot the bill.

Edited by Pent Up

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‘But many people spend a lot more before they have the commitment of a mortgage and then cut back accordingly.’

Better be careful what he says, an admission that spending all your money on a mortgage may not be beneficial to the wider economy.

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'It is feared that if the FSA’s Mortgage Market Review is implemented in its current form then up to one in five people could be ineligible under its stringent rules'

Only if the present stupidly high prices continue

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Yet ray boulger, michael coogan and the dickheads from CML amongst others would rather lend to those who can't afford it, as it's more profitable for them.

They don't care if the debtor defaults because the taxpayer will just foot the bill.

What bothers me is that they feign pity for "poor first time buyers".

You know what Ray / Mick, I actually AM a FTB. Stop pretending to speak for us and acknowledge that what we ACTUALLY want is affordable house prices.. not you A-holes trying to flog us your Del-boy mortgage products <_<

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If only they'd had thoe rules back in the 1980s, I could've got a mortgage back in my first job in London ... on a flat that would've been under £25k in 1983. Cheaper than rent back then, too, just kept out of reach by formulaic income multiples.

It'll favour the financially responsible over the spendthrift.

Edited by porca misèria

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Yet ray boulger, michael coogan and the dickheads from CML amongst others would rather lend to those who can't afford it, as it's more profitable for them.

They don't care if the debtor defaults because the taxpayer will just foot the bill.

Yup; they are complete & utter D£CKHEADS.

CML: The Council of Mortgage Lenders Liars.

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i like a flutter. I suspect that would be frowned upon. Much more comes in from betting that ever goes out, and it's certainly a hobby over a habit, I doubt that would make any difference in out socially forwning point scoring system world.

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Lucky that hookers and drug dealers don't take debit cards then eh?

Heh my bankstatements look funny too since I have ZERO spends on the debit card. I'm irritating enough to take money out or stick it to paypal (boo hiss!) to pay somebody thus all you get are cash withdrawls and paypal. It's handy because there is a cash machine near where I fill up with gas and buy food too.

If your money is withdrawn in cash, you are even less likely to get a mortgage Ken.

They don't like people who don't take their place as a cog in the system. Plus, if you're still spending the money, exactly what you're spending it on isn't that relevant.

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Getting a mortgage is about to get tougher. Some nice bear food for 2011 :)

Read on....

http://www.dailymail.co.uk/news/article-1343140/Why-going-gym-scupper-chances-getting-mortgage.html?ITO=1490

Already been through this in Oct 2010 with Barclays. Very intrusive but you simply need to pair back your lifestyle. It is amazing when they go through the affordability test how much crap you pay out! It is a very good idea as a lot of peolple earning big money, spend big money yet still get big mortgages and drive up prices! Teaches people to 1) budget 2) SPEND RESPONSIBLY 3) act responsibly with money and Save!

I like it a lot,

N

Edited by Nautorius

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If your money is withdrawn in cash, you are even less likely to get a mortgage Ken.

They don't like people who don't take their place as a cog in the system. Plus, if you're still spending the money, exactly what you're spending it on isn't that relevant.

I don't exactly want a mortgage tbh..... after the upheaval which has been my life for the past 10 years moving around it just doesn't make any sense. Also my income isn't exactly secure either!

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‘But many people spend a lot more before they have the commitment of a mortgage and then cut back accordingly.’

Better be careful what he says, an admission that spending all your money on a mortgage may not be beneficial to the wider economy.

So true - and something so fundamental that seems utterly lost on the 'experts' when they drone on about mortgage availability as the key to our problems.

The idea that housing debt is good and any other debt is bad is simply insane.

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Cash is king.

Really though if this means less successful applicants then surely that means lower house prices.

Eventually after prices have dropped substantially the govt will step in and lax those rules again.

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Ray Boulger, of mortgage broker John Charcol, said:...

...

The country is already in the grip of a home loan famine, ....

Famine is a really good word to describe what's happening to the UK housing market.

But it's an affordable housing famine not a home loan/mortgage famine.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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