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Agents are reporting that even now, many weeks after the introduction, the rigorous and long-winded questioning process at the heart of the Mortgage Market Review is still causing horrendous delays.

This is directly leading to slow transactions, disagreements between vendors, buyers and agents, and ultimately fall-throughs too.

Here is a selection of what agents have told EA Today:

A customer applying for a mortgage was questioned about his gambling habit after placing a few bets at the Grand National on one day out. He was required to provide full details and 12 months bank statements about any and all previous gambling instances, so that the bank could understand if he had a gambling habit - Kinleigh Folkard & Hayward.

One of our clients had been given money by their parents to help with a property purchase. They mentioned that some of the deposit was a gift, and it was immediately discounted on the basis that its status couldn’t be verified as a gift as opposed to a loan - Stacks Property Search & Acquisition.

Private finance firms are telling us that MMR is causing problems for high net worth individuals. Even though the buyer may have millions to their name, these funds are often offshore and it is difficult to prove regular income. Couple that with extravagant spending habits and often the computer says No - Robert Bailey Property.

The industry fall-through rate is supposed to be around 30 per cent. In the last 18 months this has fallen to below five per cent. However the impact of the MMR is pushing this right back up again. In the last week alone we have had three deals falter - Roy Brooks.

Two clients meeting with a branch advisor recently had to show a full trail of their bank account statements for deposits as small as £1,000 transferred between their accounts. Gym memberships and service charges for flats are now a huge consideration, with many banks scrutinising payments to ensure affordability. Nationwide has started requesting 12 months bank statements from first time buyers living in rented accommodation, when going through a letting agent - Kinleigh Folkard & Hayward.

Even before MMR we were experiencing lengthy delays and there is no question that we are now feeling the full impact. The days of the mortgage surveyor or even the private surveyor arranging an appointment during the same working week of the instruction are long gone. Since the stealthy introduction of MMR, those delays have increased - Savills.

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Funny.

Shock horror, people being asked to prove then can pay back loans.

Why this wasn't done immediately after 2007 is beyond me.

The government is about to find out that 99% of the population can no longer afford to live.

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The government is about to find out that 99% of the population can no longer afford to live.

'Appen.

Like the (any) Govt gives a f.

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The government is about to find out that 99% of the population can no longer afford to live.

This exactly why the whole industry has been quiet about the implementation of MMR.

It'll be interesting to see how the likes of the CML will be able to argue for a relaxing of this.

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Thanks for posting. This one is good...

Even though the buyer may have millions to their name, these funds are often offshore and it is difficult to prove regular income

Perish the thought that London may not be able to continue as the money laundering capital of Europe, if not the world!

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It'll be interesting to see how the likes of the CML will be able to argue for a relaxing of this.

"We need government to allow people to borrow money they cannot pay back but will be underwritten by the tax payers". :lol::lol::lol::blink:

Edited by TheCountOfNowhere

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You only get to hear one side of the story, with these MMR 'horror stories', poor credit records or defaults are probably what prompts the lender to go through bank statements in fine detail and further back in time. As others have said, even post MMR some lenders rules will be slacker than they used to be years back, if you appear to have a clean credit history and pass their initial test.

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Not sure why the schadenfreude.

BTL (or rather BTL for the purposes of getting a loan) will of course just sail through the tests

Edited by aSecureTenant

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Why have verification of income and expediture when a house will pay for itself until it no longer can.....who then will be left holding the crying baby? ;)

Rights, entitlements, delays..huh :huh:

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Not sure why the schadenfreude.

BTL (or rather BTL for the purposes of getting a loan) will of course just sail through the tests

And will bear the brunt of what is now an unstoppable brutal correction.

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Not sure why the schadenfreude.

BTL (or rather BTL for the purposes of getting a loan) will of course just sail through the tests

Agh but the BTL 'investment' greatest risk so will have the most to lose.....they will lose their money first before anyone else does. ;)

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"Nationwide have started requesting 12 months bank statements"

Which is exactly what they used to do when I got a mortgage through them in the 90s. :huh:

Yes..

Got something similar in 2000. By 2006 when we moved house it was more 'Can you fog a mirror? You get 3 attempts..'

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Agh but the BTL 'investment' greatest risk so will have the most to lose.....they will lose their money first before anyone else does. ;)

Exactly. BTL is a safety valve. Once the sheeple see the bust BTLers equity will be first call as it were.

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Why doesn't it occur to 'innocent' buyers that when banks slash what they'll borrowers, that sellers will have fewer proceedable buyers, and eventually some owners will have to lower house prices?

This person sold, after seperation and got a chunk in the bank... upset bank suddenly cut what it will lend them, feeling like a victim because they can buy a flat/lease-house at £180,000.

http://forums.moneysavingexpert.com/showthread.php?t=5017067

No doubt the excuse givers know best.. ignorance wins over wisdom. The same cretins who when bought at peak 80s, calculating out on paper how wealthy they would be at the same rate of HPI forever more. Don't ask us to carry your overpaying cretins today and of past few years, who have their mind in the sewer same as you did, to carry your 'victim' sort around on their backs.

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What I think people don't understand is that how big the deposit is is irrelevent, it is the affordability of the monthly loan repayments, being able to repay that loan before retirement.

You could have a million pounds deposit and want to borrow one hundred thousands pounds...but if you earn two pounds fifty it won't happen. ;)

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'Private finance firms are telling us that MMR is causing problems for high net worth individuals. Even though the buyer may have millions to their name, these funds are often offshore and it is difficult to prove regular income. Couple that with extravagant spending habits and often the computer says No - Robert Bailey Property.'

Millions in the bank you say. Offshore you say. But you want to borrow money. I see.

Anyone want to try the Nigerian scam letter on this brainless wtat?

There's a whole city of 40+ women who've been dating 'millionaires in the bank offshore types'.

They always turn out to be unemployed bin men.

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What I think people don't understand is that how big the deposit is is irrelevent, it is the affordability of the monthly loan repayments, being able to repay that loan before retirement.

You could have a million pounds deposit and want to borrow one hundred thousands pounds...but if you earn two pounds fifty it won't happen. ;)

Can't I just downsize and keep the equity?

Thats a quote, not a joke.

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Why doesn't it occur to 'innocent' buyers that when banks slash what they'll borrowers, that sellers will have fewer proceedable buyers, and eventually some owners will have to lower house prices?

This person sold, after seperation and got a chunk in the bank... upset bank suddenly cut what it will lend them, feeling like a victim because they can buy a flat/lease-house at £180,000.

http://forums.moneysavingexpert.com/showthread.php?t=5017067

No doubt the excuse givers know best.. ignorance wins over wisdom. The same cretins who when bought at peak 80s, calculating out on paper how wealthy they would be at the same rate of HPI forever more. Don't ask us to carry your overpaying cretins today and of past few years, who have their mind in the sewer same as you did, to carry your 'victim' sort around on their backs.

What a thread...so desperate to get himself into debt for an unsustainable sum. I wonder if he has even asked the seller if they would reduce as him mortgage offer has been...? If he can't raise more there can hardly be a long queue of people behind who can.

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What a thread...so desperate to get himself into debt for an unsustainable sum. I wonder if he has even asked the seller if they would reduce as him mortgage offer has been...? If he can't raise more there can hardly be a long queue of people behind who can.

Step 1, I cant borrow enough

Step 2, You're asking too much

Edited by cybernoid

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Hah hah - THIS:

Private finance firms are telling us that MMR is causing problems for high net worth individuals. Even though the buyer may have millions to their name, these funds are often offshore and it is difficult to prove regular income. Couple that with extravagant spending habits and often the computer says No - Robert Bailey Property.

Is so much ******** it is untrue. I suspect that the funds offshore have a tax/legality problem, so the borrower doesn't want to prove ownership to a third party. Any legit offshore holder can just produce statements, or indeed a letter from his offshore bank confirming amount and ownership...

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Millions in the bank you say. Offshore you say. But you want to borrow money. I see.

Anyone want to try the Nigerian scam letter on this brainless wtat?

There are lots of reasons why wealthy people might not fit into these criteria. Family money will not be counted and neither will assets. If you owned 40% of a £150M company that didn't pay dividends it wouldn't help you. Lots of people have money tied up that it is not beneficial to access in order to buy a house (any asset returning more than 2% over the mortgage rate for example).

Right from the beginning I thought the MMR rules would make a difference at the top end and London because banks would lend you as much as you wanted no questions if you had a 60% deposit.

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