Banks 'using excuses' to refuse mortgages

mewbie_2

minimike2 wrote: »

Stupid lending got us into this mess

Wasn't it more the withdrawal of stupid lending? I agree it's stupid, but it does seem the answer is to actually be more stupid with money to prop the whole thing up? So the banks shouldn't even be asking any questions. We've just lent / given them 250 billion, let's have some of it back.

Otherwise it implies GB has made a very big mistake. Instead of giving the banks anything, they should have gone to the wall, and he should have put a sign over number 10 - Bank of Toerag (or similar), and hand out mortgages direct from there.

I don't think you'll find any flaws in this, although there's always some clever clogs waiting to pounce.

Pennywise

Aren't they just going back to the way things used to be? It's just the end of the days of easy credit. I'm only in my early 40's and remember being turned down for credit cards and HP agreements without having any blemishes on my credit file - I just didn't get enough "points" when they considered income, housing status, employment status, other financial committments, and reason for borrowing. Credit became too easy to get, credit history blemishes ignored, not enough proofs and references obtained, etc. That's what led us into this mess. Surely a return to more sensible lending is to be welcomed, not criticised.

treliac

With house prices dropping and general uncertainty about the future of the economy, it's understandable that lenders are in a dilemma about how and where to pitch their lending. But it's unfair for would be borrowers to incur costs and to then be let down unless it emerges, for example, that they've withheld information.

However, I guess that recent economic changes have been so rapid, unexpected and will potentially be so seismic, that lenders, no more than the rest of us, don't really know where they are going. We need time for this to become clearer and, unless it feels absolutely essential, it's best to put off house buying for the time being as it'll be too easy to make financial mistakes.

olly300

napoleon wrote: »

Why do they need excuses at all? All the banks have to say is that the property you want us to lend you money for isn't worth what you'd like pay for it. And on that basis only a madman would lend money.

Nothing wrong with that.

However this entire forum is about whether it is worth accepting the status quo if you are unhappy with something particularly from companies.

If the banks clearly stated what you have pointed out after the survey then no one can argue.

However if they are pulling mortgage offers from people who state they have perfect credit files (and we can only believe them particularly if they can go and get a mortgage elsewhere without too much difficulty) just before exchange then they need to give a reasonable explanation.

drbeat

mewbie wrote: »

Wasn't it more the withdrawal of stupid lending?

Yes, but the stupid lending had to start in the first place but of course - as you mentioned - it then stopped!

mewbie_2

drbeat wrote: »

Yes, but the stupid lending had to start in the first place but of course - as you mentioned - it then stopped!

I love it.

Generali

mewbie wrote: »

Wasn't it more the withdrawal of stupid lending? I agree it's stupid, but it does seem the answer is to actually be more stupid with money to prop the whole thing up? So the banks shouldn't even be asking any questions. We've just lent / given them 250 billion, let's have some of it back.

Otherwise it implies GB has made a very big mistake. Instead of giving the banks anything, they should have gone to the wall, and he should have put a sign over number 10 - Bank of Toerag (or similar), and hand out mortgages direct from there.

I don't think you'll find any flaws in this, although there's always some clever clogs waiting to pounce.

Do you play poker by any chance?

The money that you've already put into the pot is meaningless as you can no longer have any impact on that. You can have an effect on what you put in from now.

GB gave/lent a load of your kids' money to the banks. That's already done but any further cash should be looked at in terms of what that money will achieve not just on the basis of chucking good money after bad.

kingkano

spurious - not true or genuine; false; counterfeit.

I don't see any argument for the above definition. Most of the claims in your excerpt look like good grounds for rejecting a mortgage application in sane credit conditions. Perhaps people with CCJs were allowed to get mortgages previously but thankfully they can't as easily now!

'Minor matters' I could agree - but they all sound like the involve an unpaid debt to me.

olly300

kingkano wrote: »

spurious - not true or genuine; false; counterfeit.

I don't see any argument for the above definition. Most of the claims in your excerpt look like good grounds for rejecting a mortgage application in sane credit conditions. Perhaps people with CCJs were allowed to get mortgages previously but thankfully they can't as easily now!

'Minor matters' I could agree - but they all sound like the involve an unpaid debt to me.

Minor debts tend to involve companies like mobile phone companies.

I have a good credit record but found in the past 12 months:
1. A certain mobile phone company did two credit searches on me both recording my address incorrectly.
2. Staff members from the same company threatened to ruin my credit record because I was in a dispute with them.

I sorted both out by involving the regulators - the Information Commissioner and OFCOM, and threatening to take the company to court.

Your average person on the street will ignore a company that records incorrect information on their credit file if they know they have paid a debt or don't owe the company any money or not know how to go about sorting it out, I don't due to posting on this forum and knowing the possible consequences.

xmaswoes

my credit was excellent, tried 2 get a loan couple months back (at the height of the bank collapse) but was constantly refused.....knew it wernt me an that my money baling them out was being used instead to fund ther continued lavish lifestyle ... so %^*$ it, missed payments here an there an continue to do so bcos for a good while now, i aint gonna apply for credit (cos i wont get it) so i dont care