Banks 'using excuses' to refuse mortgages

neverdespairgirl

poppy10 wrote: »

Another would-be buyer was turned down because of an unpaid parking ticket. He had been issued with a county court judgment against him – leaving a black mark on his credit history.

Interesting article, thanks for posting it.

I do think this one is a bit silly of the writer, though. Having a CCJ against one's name doesn't mean that being turned down for credit is "spurious".

drbeat

xmaswoes wrote: »

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

Any chance you could drop the txt-chav-speak?

dopester

The timidity of the banking system appears to have been general and widespread. Indeed, the 1939 survey found that over half the reasons given for credit refusals by banks were "bank policy"; only a third were because of "the condition of the borrowing concern."

-Michael A.Bernstein
The Great Depression

With the value of real estate collateral falling, the true market value of construction and real estate loans will fall. Bankers and other lenders, like their predecessors after 1929, will not wish to magically turn one dollar of cash into a loan worth eighty cents, much less sixty cents.

When the value of collateral falls, and the public's demand for saving safety rises, even easy money at the Fed may not stop deflation.

If a bank wants to sell on a mortgage book to another financial institution, in this financial storm, you can bet the buyer would look over the quality of the mortgage book and seek to buy it at a very big discount, to account for bad debts and potential defaulters in the book. They might not even want the mortgage book at all at significant discount.

The banks don't want to write mortgages to any Joe who isn't putting a wedge in themselves to buffer against further falls, and who doesn't work in a sector with a fair to good projected employment outlook.

They fear further mass-unemployment contagion. Please try and understand it. They don't want to lend to poor risks, when house prices might drop another 70%+.

dlk

Adverse credit would have ALWAYS led to a decline decision with most lenders! To consider it spurious is truly bizarre!

In the situation of mobile phone providers etc adversely affecting your credit file for small amounts that a customer wasn't aware of lenders will usually simply ask for a letter of satisfaction to show this has been repaid in full.

All of the examples given in this article just seem like yet another piece of media sensationalism and if you're a good risk banks still want to lend money.

xmaswoes

drbeat wrote: »

Any chance you could drop the txt-chav-speak?

wow! u actually posted someit like that?

ansa

no

olly300

dlk wrote: »

Adverse credit would have ALWAYS led to a decline decision with most lenders! To consider it spurious is truly bizarre!

In the situation of mobile phone providers etc adversely affecting your credit file for small amounts that a customer wasn't aware of lenders will usually simply ask for a letter of satisfaction to show this has been repaid in full.

All of the examples given in this article just seem like yet another piece of media sensationalism and if you're a good risk banks still want to lend money.

So you are implying all the people who posted on the mortgages board who where suddenly turned down for their mortgage just before exchange with no reason or silly reasons given where/are lying? Especially as they managed to get a mortgage with a few weeks delay from another well known institution.

Edited to say: you can find the threads yourself as they are not that hard to find and I don't want to single any particular person out due to the hostile posts already on their threads.

drbeat

xmaswoes wrote: »

wow! u actually posted someit like that?

ansa

no

Hardly surprising that your finances are out of control.

olly300

drbeat wrote: »

Hardly surprising that your finances are out of control.

Stop being a snob.

Though I do wonder if people who post like xmaswoes have problems reading and comprehending financial documents or terms and conditions in contracts.

xmaswoes

:A :eek:

drbeat wrote: »

Hardly surprising that your finances are out of control.

jesus jezzer jezzer joe!

r u makin asumpsions? i neva sed my financiers r owt of contr0l? im playin a system but know wer i am wit my £$$$ ..... out a c0ntr0l is a difffo sito 2 me

can i axe u not 2 make ur asumsians :money: :mad: :cool: :rotfl:

xmaswoes

il never request peoples help on here becos i can fully understand finacial docs etc......which results in me owing very little and not having to rely on dodgy 'advisors' on this site giving ther help for free which begs the question 'are people mad 2 take ther advice?'??? ??

its like the killed realitives second uncle removed by 10, half brother transexual wife of the persons mother killed by a murderer who suddenlly become an expert in crime setting up a group that news channelsthen hav do a link when a murder happens

same as it is here as it is ther.....what skills exactly hav u people got to offer advice.....