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How Much Steak Do You Eat? New Rules & Declining Applications

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Hello,

I've just spent a pointless afternoon on the line with Natwest, who after 9 years of perfectly paying off all credit cards/mortgage payments and loan repayments and passing the affordability test have told me "computer says no" for no reason. Apparently they have a system that will just throw up a block against you and not give a reason at all according to the chaps on the phone. The first of which told me to get my Equifax report (which turned out to be excellent) and Equifax told me Natwest didn't even run a call against me. So I was barred without a check into my credit anyway.

On complaining to the phone staff they told me there is no recourse and nothing I can do to go any further with them to get a mortgage and when I threatened to move mortgage account and close my natwest current accounts they said fine. I'm not landed gentry but I do pull a 6 figure salary and they really don't give a toss to lose my business.

So I spent the rest of the afternoon speaking to an independent mortgage broker who told me that all kinds of ridiculous reasons are coming out for refusals of loans and mortgages his favourite question of which from one provider was "how much steak do you eat".

I feel like jacking the whole process in and just staying put (which I know you guys will tell me is probably for the best anyway!)

Angry of London

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Tough luck victim.

Keep moaning and complaining you can't get the debt you deserve.

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Ouch@venger.

Well, I can't get an extra bedroom I need for an expanding family. Yes I am annoyed to be blocked when friends and relatives are able to move. I'm locked into where I live forever it seems like and that does have negative consequences.

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Ouch@venger.

Well, I can't get an extra bedroom I need for an expanding family. Yes I am annoyed to be blocked when friends and relatives are able to move. I'm locked into where I live forever it seems like and that does have negative consequences.

That's the beauty of renting.

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Ouch@venger.

Well, I can't get an extra bedroom I need for an expanding family. Yes I am annoyed to be blocked when friends and relatives are able to move. I'm locked into where I live forever it seems like and that does have negative consequences.

By my way of thinking, as more mortgage applicatnts get refused for the "debt they're entitled to" to "pay what it's worth", more owners/sellers will have to reduce their asking prices.

Meaning waiting = eventually a seller of a home that will meet all your criteria, will be much more likely to accept a much lower amount than you currently wish to pay.

Thus, less debt required to buy the home you want, and calculate that debt vs interest rate applicable on one of the mortgage calculators to see your total saving. Especially when the only current hardship for you is owning but it being a squeeze, having to hold off from your entitled to upsize whever cause 'been customer of a bank for ages'.

Unless your area is more prone to deeper falls in a correction vs upsizing now. Anyway, banks' licenced to lend, so banks' rules. MMR; love it. Your friends and relatives able to move? MMR not testing their finances either?

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I have a friend, who I warned, has got herself into £600k of mortgage debt over two houses with a salary of 55k. I have no idea how she has managed to do that but I perhaps you're right! Lucky to be refused, will keep the kid in a drawer till things cool down.

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I have a friend, who I warned, has got herself into £600k of mortgage debt over two houses with a salary of 55k. I have no idea how she has managed to do that but I perhaps you're right! Lucky to be refused, will keep the kid in a drawer till things cool down.

Or you could sell your existing house and rent a more suitable one "till things cool down".

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I have a friend, who I warned, has got herself into £600k of mortgage debt over two houses with a salary of 55k. I have no idea how she has managed to do that but I perhaps you're right! Lucky to be refused, will keep the kid in a drawer till things cool down.

Kids can live in little space, they don't need big houses.....what they want are loving parents that are there to care and support them....in fact they would prefer a nice holiday than a bigger room. ;)

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Hi Sorry

Wanting to move and have a mortgage already with natwest, wanting to port part of it.

OK, I don't profess to know all about mortgages and the process involved to get a greater mortgage to get a more expensive house mid mortgage term. How was this achieved pre 1998? Question to all HPCers with more mortgage experience.

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Bruce - That may be a good idea. But reading this website not sure I want all my money sat in the bank either! Hmmm, maybe though.

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Bruce - That may be a good idea. But reading this website not sure I want all my money sat in the bank either! Hmmm, maybe though.

Spread it around, not more than £85K per banking license.

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Guest

Hello,

I've just spent a pointless afternoon on the line with Natwest, who after 9 years of perfectly paying off all credit cards/mortgage payments and loan repayments and passing the affordability test have told me "computer says no" for no reason.

What is the proposed purchase price of the new house?

Size of mortgage being asked for?

Size of salary(or salaries)?

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By my way of thinking, as more mortgage applicatnts get refused for the "debt they're entitled to" to "pay what it's worth", more owners/sellers will have to reduce their asking prices.

Meaning waiting = eventually a seller of a home that will meet all your criteria, will be much more likely to accept a much lower amount than you currently wish to pay.

Thus, less debt required to buy the home you want, and calculate that debt vs interest rate applicable on one of the mortgage calculators to see your total saving. Especially when the only current hardship for you is owning but it being a squeeze, having to hold off from your entitled to upsize whever cause 'been customer of a bank for ages'.

Unless your area is more prone to deeper falls in a correction vs upsizing now. Anyway, banks' licenced to lend, so banks' rules. MMR; love it. Your friends and relatives able to move? MMR not testing their finances either?

If the banks won't lend now, do you really think they'll be happier to lend after the HPC has shredded their loan books?

Or perhaps you think that you'll be able to buy in cash - I'd say that that makes you a prime candidate for a 'bail-in' direct theft to save the banks post HPC...

If I can buy a decent house and pay less in interest on the loan than my current rent, doesn't taking away my choice disadvantage me? I could and IMHO should be allowed to make my own silly choices, as long as I deal with the consequences myself. Applauding the rentiers for forcing us renters to keep renting forever seems illogical to me...

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I have a friend, who I warned, has got herself into £600k of mortgage debt over two houses with a salary of 55k. I have no idea how she has managed to do that but I perhaps you're right! Lucky to be refused, will keep the kid in a drawer till things cool down.

When did she buy?

You do know MMR came in two or three months ago? Stress testing residential mortgage applicants to what they can afford to pay?

MMR doesn't apply to BTL, but now BTLers are facing challenges now, to what they can borrow, from main lender groups, with loan-to-income tests for affordability.

The only unknown for me is Chinese/foreign buyers with millions of billions (supposedly) buying property all over the world at ever higher stupid prices, who some fear will 'take advantage' that people like you, and me, can't borrow from banks, and buy up all the houses with their neverending cash, and those riding the stockmarkets. I'll take my chances though. Some of the smart money is exiting whilst bubble money grown accustomed to thinking its forever cuddles, forever hpi, forever new peaks.

Thursday, 10 Jul 2014

With the stock market recently at all-time highs, before Thursday's sharp selloff in futures and weakness earlier this week, it's more attractive to sell than buy, private-equity billionaire Wilbur Ross said.

"On balance we've been a seller. We've sold six times as much as we've bought so far this year … everywhere," the investor in distressed assets told "Squawk Box" on Thursday.

Ross said stock valuations in the U.S. are high, and "with markets [near] at all-time highs, it shouldn't be surprising that there are more things that are attractive to sell than to buy."

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What is the proposed purchase price of the new house?

Size of mortgage being asked for?

Size of salary(or salaries)?

Salary 100k/deposit 100k/new house outside of london but commutable 300k - no cc debts pay in full each month/no loans/nuffink

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Salary 100k/deposit 100k/new house outside of london but commutable 300k - no cc debts pay in full each month/no loans/nuffink

Just to be clear, natwest said wasnt an affordability issue, we know its a credit report issue as they didn't run it, it was an internal, nope get lost.

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