Darkman Posted January 1, 2011 Share Posted January 1, 2011 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 Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted January 1, 2011 Share Posted January 1, 2011 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. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted January 1, 2011 Share Posted January 1, 2011 Should have to show you can save regularly and manage money well. Basic requirement IMO. Quote Link to comment Share on other sites More sharing options...
daddybear Posted January 1, 2011 Share Posted January 1, 2011 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 Quote Link to comment Share on other sites More sharing options...
Pent Up Posted January 1, 2011 Share Posted January 1, 2011 (edited) 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 January 1, 2011 by Pent Up Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted January 1, 2011 Share Posted January 1, 2011 ‘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. Quote Link to comment Share on other sites More sharing options...
Byron Posted January 1, 2011 Share Posted January 1, 2011 '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 Quote Link to comment Share on other sites More sharing options...
libspero Posted January 1, 2011 Share Posted January 1, 2011 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 Quote Link to comment Share on other sites More sharing options...
porca misèria Posted January 1, 2011 Share Posted January 1, 2011 (edited) 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 January 1, 2011 by porca misèria Quote Link to comment Share on other sites More sharing options...
eric pebble Posted January 1, 2011 Share Posted January 1, 2011 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. Quote Link to comment Share on other sites More sharing options...
hirop Posted January 1, 2011 Share Posted January 1, 2011 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. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted January 1, 2011 Share Posted January 1, 2011 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. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 1, 2011 Share Posted January 1, 2011 Love the bit about holidays, it's like saying once your paying for a house you can kiss the foreign holiday goodbye. Quote Link to comment Share on other sites More sharing options...
Nautorius Posted January 1, 2011 Share Posted January 1, 2011 (edited) 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 January 1, 2011 by Nautorius Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 1, 2011 Share Posted January 1, 2011 the FSA should just BAN mortgages secured on residential property. Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted January 1, 2011 Share Posted January 1, 2011 Here's hoping tight lending continues as this is KEY to another boom forming... Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted January 1, 2011 Share Posted January 1, 2011 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! Quote Link to comment Share on other sites More sharing options...
red Posted January 1, 2011 Share Posted January 1, 2011 ‘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. Quote Link to comment Share on other sites More sharing options...
Ruffneck Posted January 1, 2011 Share Posted January 1, 2011 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. Quote Link to comment Share on other sites More sharing options...
billybong Posted January 1, 2011 Share Posted January 1, 2011 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. Quote Link to comment Share on other sites More sharing options...
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