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Barclays reduce lending multiples


Rian1988

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HOLA441
16 hours ago, moonriver said:

Yes seems odd, but being property, they must be thinking the more they spend on a place (even with borrowed money) the more money they make. :ph34r:

...... except the best places are not the most expensive.....guess people will buy anything at any price using money thrown at them that is not their own.;)

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Barclays pulls riskier mortgages after nearing lending limit

UK bank cut income multiples without notice last week to avoid breaching regulatory rule

https://www.ft.com/content/a1a0cb39-43de-411a-9fa1-22db4bb0568e



Barclays has been forced to withdraw mortgages for certain customers after coming close to breaching a regulatory limit on lending to higher-risk borrowers. The UK bank shocked customers last week when it reduced the maximum they could borrow from 5.5 times income to 4.49 times without notice.

The change affected borrowers who had already agreed mortgages, putting some property purchases at risk of collapse.

. . .

Brokers added that the Barclays decision came as a blow to borrowers since it covered existing applications — those where an agreement in principle has been made and an applicant may have paid for a survey or legal fees and is waiting for the lender’s confirmed offer to exchange contracts.

It may also have an impact beyond Barclays’ borrowers by holding up homebuying chains.

Adrian Anderson, director of mortgage broker Anderson Harris, said: “It is unusually brutal. The thing that shocked me was that it included pipeline cases.”

. . .



Aaron Strutt, product director at mortgage broker Trinity Financial, said there was “massive demand for 5.5 times salary”, adding that Barclays had become “really popular” because no other lender was offering it on the same terms. Mr Strutt said one client on Monday morning discovered her mortgage, which had been agreed in principle, was no longer valid.

“She’s looking for alternatives. The difficulty is there aren’t really any alternatives at the moment.”

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HOLA443

Jan 2019:

https://www.trinityfinancialgroup.co.uk/article/55-times-salary-mortgages

Barclays is offering up to 5.5 times salary mortgages to new and existing Premier and Barclays Wealth customers. 

The bank raised the maximum income multiple for applications from 5 times salary to 5.5 times salary for all residential capital repayment mortgages.

If you do not have a Premier account, Trinity Financial can arrange for a personal banker to contact you and open an account prior to the application being submitted. One applicant will need an annual income of £75,000 to qualify. If one applicant does not earn £75,000 - you will need a joint income of £100,000 to qualify or have £100,000 saved or invested with the bank. 

Interest-only applications will not be considered, although Barclays will potentially offer a 35-year repayment term to a maximum age of 70. This should lower the monthly costs.

Our advisers have access to a specific broker-only team regularly providing impressively fast mortgage offers.

Aaron Strutt, product manager at Trinity Financial, says: “Barclays 5.5 times salary mortgage offer has been popular with our clients, particularly as most high-street banks and building societies will lend between four and five times salary. They do not typically offer mortgages over five times income. 

“Trinity has access to another leading lender offering up to 5.5 times salary mortgages providing clients earn over £100,000 - either individually or as part of a joint application. The bank has competitively priced rates and you do not need to open a premier account to qualify. The maximum loan is £1,000,000.”

One more bank recently started providing 5.5 times salary mortgages to Accountants, Architects, Barristers, Chartered Surveyors, Dentists, Medical Doctors, Pharmacists, Pilots, Solicitors and Vets. Applicants must have been qualified in the last five years and earn £40,000 or more.

To secure a 5.5 times salary mortgage call Trinity Financial on 020 7016 0790 or send an enquiry.

 

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HOLA445
23 minutes ago, jiltedjen said:

just seems that lending demand is high, and the banks want to limit lending to the better end of borrowers.

for FTB is pretty good news, as the sensible ones with 10-15% saved up wont be outbid by those scraping the bare minimum 

Bankers want o lend to people with equity in their homes....now why would that be 

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