neilrich Posted April 25, 2014 Share Posted April 25, 2014 Some lenders are treating regular savings such as a monthly direct debit into a personal pension as a financial commitment when assessing affordability. Mr Boulger said that for some people it might help their mortgage application if they discontinued or suspended regular pension contributions for six months. Perhaps it's just me, unbelievable!! http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10787446/How-to-pass-the-new-mortgage-affordability-tests.html Quote Link to comment Share on other sites More sharing options...
sleepwello'nights Posted April 25, 2014 Share Posted April 25, 2014 (edited) Perhaps it's just me, unbelievable!! http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10787446/How-to-pass-the-new-mortgage-affordability-tests.html Well I think a lot of contributors on this forum already realise that bankers aren't the smartest cookies in the box; until it gets to their bonuses that is. Edited April 25, 2014 by sleepwello'nights Quote Link to comment Share on other sites More sharing options...
Monkey Posted April 29, 2014 Share Posted April 29, 2014 Hahahahahahaha responsible media activly promoting mortgage fraud Quote Link to comment Share on other sites More sharing options...
billybong Posted April 29, 2014 Share Posted April 29, 2014 (edited) Hahahahahahaha responsible media activly promoting mortgage fraud +1 ... it might help their mortgage application if they discontinued or suspended regular pension contributions for six months. That would be so those payments don't show up on bank statements? Isn't there a law against conspiracy to defraud (alleged). http:// en.wikipedia.org/wiki/Conspiracy_to_defraud Conspiracy to defraud is an offence under the common law of England and Wales and Northern Ireland. That sort of thing led to the economic collapse of the country not so long ago. Edited April 29, 2014 by billybong Quote Link to comment Share on other sites More sharing options...
Ah-so Posted April 29, 2014 Share Posted April 29, 2014 The pension payments are not compulsory so it is perfectly valid to stop them. If it is a choice between being repossessed and stopping pension contributions, you would choose the latter. If banks cannot tell the difference between discretionary and non discretionary payments, it is reasonable to clarify it for them. Quote Link to comment Share on other sites More sharing options...
winkie Posted April 29, 2014 Share Posted April 29, 2014 I thought the mortgage supersdes the pension. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 29, 2014 Share Posted April 29, 2014 If you stop the pension payments to over-pay, with boe freshly printed money using a deposit from the Help to Banks scheme, for an over-princed shoe box, then you can be sure the pension payments wont be restarting any time soon. Quote Link to comment Share on other sites More sharing options...
R K Posted April 29, 2014 Share Posted April 29, 2014 Forget your pension young debt serfs, do whatever it takes to secure a mortgage to buy an overpriced house off one of Ray's mates! Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted April 29, 2014 Share Posted April 29, 2014 What's the point owning a house if you don't have a pension income to maintain the house and pay the bills? You'de be better off renting at the tax pyers expense and getting the landlord/HA to undertake repairs and maintenance. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 29, 2014 Share Posted April 29, 2014 The pension payments are not compulsory so it is perfectly valid to stop them. If it is a choice between being repossessed and stopping pension contributions, you would choose the latter. If banks cannot tell the difference between discretionary and non discretionary payments, it is reasonable to clarify it for them. no, but they are POLICY. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted April 29, 2014 Share Posted April 29, 2014 You can smell the panic over at MSE, all the 95% LTV mortgagees with their dodgy credit ratings are getting panicky. http://forums.moneysavingexpert.com/showthread.php?t=4958129 We've been trying to buy a house under the help to buy scheme 2 (95% with 5% deposit)We have seen a mortgage adviser and we could borrow £160,000. We found a house for £158,000. Mortgage adviser found Halifax was best. So we started the application process. Only to hear last week that they could only offer us a 85% mortgage because I didn't realise I had gone over my credit limit on my credit card http://forums.moneysavingexpert.com/showthread.php?t=4958648 We initially applied for a 95% LTV, but were told before we could get a DIP, we needed to make it a 90% LTV. We have cut our throats completely by having to pull the extra money out of thin air. My husband earns £78000 pa, the house price is £250000 and he has good credit, with no missed payments in 6 years. He does have a car on finance, that he's had for a year, and has £20000 left to pay off. He did the affordability stress test, and even after our monthly out goings and mortgage rate raising we had just over £1000 family money left. He's now worrying that his car finance has made a difference, and that because a survey has not been payed for and booked, Halifax have said no, we just haven't been told yet. http://forums.moneysavingexpert.com/showthread.php?t=4957148 THE PROBLEM (and I know it is entirely my fault!) payday loan x2 taken and repayed about a year ago.Will this last point totally wipe my chances with hsbc despite having a mortgage in principle of significantly higher than required. I bank with them so would they already know this at the MiP stage? Or should I try somebody more open to my history. http://forums.moneysavingexpert.com/showthread.php?t=4958513 Now to the hard part. A few months ago the missus took out a number of payday loans (don’t ask, long story!). She was in her overdraft for several months during this period too. They’re all paid off now and we’re comfortably back in the black, but obviously it’s a horrible blip on her credit record. Mine is fine btw.First question, do you think Nationwide (or anyone else) will offer us a new deal knowing this information? Bearing in mind we should have 2 years’ worth of ‘good credit’ showing when we come to renew. http://forums.moneysavingexpert.com/showthread.php?t=4958111 Can anyone tell me exactly what the rules are? I am specifically interested in whether the rules state that whether the affordability calculation must be accurate. e.g. if a lender is aware that they are declining a loan based on affordability and that they admit that their affordability calculation is inaccurate are they complying with the rules? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 29, 2014 Share Posted April 29, 2014 (edited) We've been trying to buy a house under the help to buy scheme 2 (95% with 5% deposit)We have seen a mortgage adviser and we could borrow £160,000. We found a house for £158,000. Mortgage adviser found Halifax was best. So we started the application process. Only to hear last week that they could only offer us a 85% mortgage because I didn't realise I had gone over my credit limit on my credit card The CON says: Drop your offer and walk away if they dont accept. If you can't afford to buy then nor can anyone else. Do yourself a favour....rent till this mess is over. We initially applied for a 95% LTV, but were told before we could get a DIP, we needed to make it a 90% LTV. We have cut our throats completely by having to pull the extra money out of thin air. My husband earns £78000 pa, the house price is £250000 and he has good credit, with no missed payments in 6 years. He does have a car on finance, that he's had for a year, and has £20000 left to pay off. He did the affordability stress test, and even after our monthly out goings and mortgage rate raising we had just over £1000 family money left. He's now worrying that his car finance has made a difference, and that because a survey has not been payed for and booked, Halifax have said no, we just haven't been told yet The CON say: Unfortunately you are likely to get the mortgage and be sucked into buying at what looks like the peak of lunacy in the UK housing market. Do yourself a favour....rent till this mess is over. THE PROBLEM (and I know it is entirely my fault!) payday loan x2 taken and repayed about a year ago.Will this last point totally wipe my chances with hsbc despite having a mortgage in principle of significantly higher than required. I bank with them so would they already know this at the MiP stage? Or should I try somebody more open to my history. The CON says: if you need to a pay day loan to survive then really, do you think mortgage debt and all the expense of home owener ship is for you ? Do yourself a favour....rent till this mess is over. Now to the hard part. A few months ago the missus took out a number of payday loans (don’t ask, long story!). She was in her overdraft for several months during this period too. They’re all paid off now and we’re comfortably back in the black, but obviously it’s a horrible blip on her credit record. Mine is fine btw.First question, do you think Nationwide (or anyone else) will offer us a new deal knowing this information? Bearing in mind we should have 2 years’ worth of ‘good credit’ showing when we come to renew. The CON says: As far as I can tell the Nationwide is now a bank in all but name and doles out freshly printed government to any mug willing to buy a house at 2007+20% prices so their balance sheet looks good. I say you'll have no problem securing a mortgage from said institution, but let us know what happens. You could consider perhaps lying to them. Do yourself a favour....rent till this mess is over. Can anyone tell me exactly what the rules are? I am specifically interested in whether the rules state that whether the affordability calculation must be accurate. e.g. if a lender is aware that they are declining a loan based on affordability and that they admit that their affordability calculation is inaccurate are they complying with the rules? The CON says: Forget the rules, take responsibility for your own life/finances. Be honest with yourself instead of lying to get into debt and help bail out a banker. Forget what level a mortgage advisor/estate agent and money lender will en-debt you to, take a step back and ask yourself, is that 1 bed studio flat really worth £2Million quid, what sort of idiot will buy it off me? , can I afford the £300 a month repayments on a £2Million mortgage when interest rates go up from 0.000001% to 6%.Do yourself a favour....rent till this mess is over. My advice is free and I offer no guarantees of accuracy in my comments. The nationwide is a fine institution and is most defintiely still a building society, sure, they do seem to favour their borrowers over their savers but their 0.5% instant saver account is amongst some of the best rates available in the UK. Their moto is "Nationwide "On Your Side" . It's getting them off your back that might be the issue. Edited April 29, 2014 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted April 29, 2014 Share Posted April 29, 2014 (edited) Perhaps it's just me, unbelievable!! http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10787446/How-to-pass-the-new-mortgage-affordability-tests.html This needs a complaint into the Beeb, Tv & Radio 4 & all papers as as Mr BoulgShitter is often an unchallenged VI voice on there, and has been for years. This is an increasing sign of desperation from the hardcore Vi' s Prosecute him under "Erics' Law" Edited April 29, 2014 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
65243 Posted April 29, 2014 Share Posted April 29, 2014 Their moto is "Nationwide "On Your Side" . It's getting them off your back that might be the issue. A genuine LOL moment! Quote Link to comment Share on other sites More sharing options...
Reck B Posted April 29, 2014 Share Posted April 29, 2014 The pension payments are not compulsory so it is perfectly valid to stop them. If it is a choice between being repossessed and stopping pension contributions, you would choose the latter. If banks cannot tell the difference between discretionary and non discretionary payments, it is reasonable to clarify it for them. He is advising people to suspend payments for 6 months, so mortgage affordability checks are passed (& he can carry on earning commision.) Where does repossession come into it?! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 29, 2014 Share Posted April 29, 2014 (edited) A genuine LOL moment! Cheers 65243,,,I try my best Edited April 29, 2014 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
eric pebble Posted April 29, 2014 Share Posted April 29, 2014 (edited) Hahahahahahaha responsible media activly promoting mortgage fraud It's been around for AGES........ And they're called PREDATORY LIAR LOANS [see all below]. Edited April 29, 2014 by eric pebble Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted April 29, 2014 Share Posted April 29, 2014 Well if I wanted to to game the system I would just draw down a cash reserve that would cover all my incidental outgoings and use that for 3 months or whatever the assessment period is. The bottom line is that the assessment period is too short - if it was say a year then it would be much harder to game in the first place. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 29, 2014 Share Posted April 29, 2014 Well if I wanted to to game the system I would just draw down a cash reserve that would cover all my incidental outgoings and use that for 3 months or whatever the assessment period is. The bottom line is that the assessment period is too short - if it was say a year then it would be much harder to game in the first place. Cash reserves..... There's someone on here funnier than me. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted April 29, 2014 Share Posted April 29, 2014 Perhaps it's just me, unbelievable!! http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10787446/How-to-pass-the-new-mortgage-affordability-tests.html Financial Conduct Authority? 0800 111 6768 consumer.queries@fca.org.uk http://www.fca.org.uk/site-info/contact Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted April 29, 2014 Share Posted April 29, 2014 (edited) http://www.bbc.co.uk/programmes/b041vvvr Interview with new training for mortgage sales people with new MMR 1.50 in RBS guy in charge of mortgages interviewed on MMR interview 5.5 mins in I paraphrase...Interviewer says with HP's high , some may try to bend rules. " What are penalties if they don't tell truth about outgoings ? RBS guy says they would not impose a penalty, we would talk to them about a mistake having been made on what they say in interview and whats on paperwork. We would not issue penalties. Equity Release Direct Link below http://www.bbc.co.uk/programmes/p01y5jq6 "Equity release mortgages are getting increasingly popular but they come at a cost. Hear how you can get stung by big fees if you want to repay early." Equity release mortgages First broadcast: Monday 28 April 2014 Edited April 29, 2014 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 29, 2014 Share Posted April 29, 2014 From that telegraph link: "prester_john • a day ago As a BTL landlord I am absolutely punching the air at this development - it's not been in a week and it's saved me £50,000 already. A month or so back I put in an offer at asking price, £349k, for a flat in west London. A couple of FTBs then piled in like loonies and bid a silly £399k for it. On Saturday I got a call from the estate agent telling me that the flat is now "fully available" again. On calling her back this morning, I found out why: the FTBs can't get the mortgage they expected. They had £80k to put down and wanted to borrow £320k on what sounded like about £100k joint earnings. The trouble is that the lenders are all ignoring his bonuses and looking only at the basic. They're also looking at her and concluding that as they've been an item for 4 years, and she's of childbearing age, they'd better ignore her basic, too. And based on that, they're coming up about £100k short. So the vendor has now come to see if I'm still there at £349k because he's in a chain and in trouble. So I think the answer is yes I am still there, but I want a discount to say £329k because I'm a cash buyer. This is a fantastic, fantastic development for landlords, cash buyers and of course foreigners who tend to be both. I don't know who thought it was a good idea to limit only the poor old British owner-occupier's bid in this way, but it clearly ain't working out quite like the shouties on here were expecting! Meanwhile it's saving me a fortune! When it completes I think I'll approach the FTBs and ask them if they want to rent it. " it's saved him 50K...he's just spenk 350K on a flat that's probably worth £150K. Bargain hunter of the year and a great advertisement as to why the BTLs should be banned and all their properties CPO'd for council houses. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 29, 2014 Share Posted April 29, 2014 "Equity release mortgages are getting increasingly popular but they come at a cost. Hear how you can get stung by big fees if you want to repay early." The 2nd phase of the collapse can't come soon enough. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 29, 2014 Share Posted April 29, 2014 I am ashamed to have voted for the free rigged market tories. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted April 29, 2014 Share Posted April 29, 2014 The 2nd phase of the collapse can't come soon enough. I just edited with direct link, perhaps it deserves its own thread ? http://www.bbc.co.uk/programmes/p01y5jq6 Quote Link to comment Share on other sites More sharing options...
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