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Freelance Mycophagist

Big Bank Tightens Mortgage Lending

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The big bank I work for (BIG 4) has, from today, changed the aproval process for mortgage lending. All mortgages with a LTV of more than 90% HAVE to be approved at our central mortgage approvals unit, bypassing some very experienced lending managers in the bank. While the lending criteria remain unchanged this, as far as I'm concerned, is a sign of worry from said institution. If they are worried about mortgages with a smaller equity 'cushion', what does that say about their expectation of future price trends?

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The big bank I work for (BIG 4) has, from today, changed the aproval process for mortgage lending. All mortgages with a LTV of more than 90% HAVE to be approved at our central mortgage approvals unit, bypassing some very experienced lending managers in the bank. While the lending criteria remain unchanged this, as far as I'm concerned, is a sign of worry from said institution. If they are worried about mortgages with a smaller equity 'cushion', what does that say about their expectation of future price trends?

Sorry FM, don't quite follow how bypassing the experienced ones means the rules are tightening......

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Nice anecdote.

It will be interesting to see what effect this news has on other lenders.

I'm rather surprised that lenders haven't tightened up before, but now that your bank has done it, maybe others will consider it. Here's hoping the banks that lend on ridiculous multiples (Northern Rock) are forced to follow suit.

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Sorry FM, don't quite follow how bypassing the experienced ones means the rules are tightening......

I think, because of performance targets, the powers that be have decided that branch-based lending decisions are not as sound as they should be. By moving the 'riskier' decisions off-site they should be more impartial and eliminated the inherent bias such a system creates.

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I think, because of performance targets, the powers that be have decided that branch-based lending decisions are not as sound as they should be. By moving the 'riskier' decisions off-site they should be more impartial and eliminated the inherent bias such a system creates.

This looks like a good thing, but to play the bull - could it be that they are worried that their managers are too tight with the money?

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I think, because of performance targets, the powers that be have decided that branch-based lending decisions are not as sound as they should be. By moving the 'riskier' decisions off-site they should be more impartial and eliminated the inherent bias such a system creates.

Many thanks!

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  • 301 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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