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Bankers told they are too risky for a loan
carolt
Posts: 8,531 Forumite
Sorry, pure schadenfreude, but couldn't help it:
http://www.guardian.co.uk/money/2009/jan/17/bankers-loan-mortgages-property
Financial sector and property workers suddenly find themselves under scrutiny from lenders. Patrick Collinson reports
Do you want a mortgage from a bank? Whatever you do, don't work there. It emerged this week that a job in a bank, once seen as a sign of financial probity, is regarded by banks themselves as a risk factor when it comes to assessing suitability for a mortgage.
Lenders are also refusing loans to people who work in the property industry - from estate agents to removal workers - amid fears of further job losses in the housing market slump.
According to mortgage brokers, Royal Bank of Scotland is rejecting applications for loans from anyone who derives more than 30% of their income from property.
When an application for a mortgage from the manager of a lettings agency was turned down, Ray Boulger of John Charcol says he quizzed RBS, and was told the criteria would apply to anyone connected to the property industry, such as conveyancing solicitors, removal workers - and even mortgage brokers.
Meanwhile, Woolwich, part of the Barclays group, is understood to be turning down applications from workers across the financial services sector who rely on bonuses for a significant part of their income.
Melanie Bien of broker Savills Private Finance says: "It's basic salary only. We had a client who works for one of the big investment banks, who earns £140,000 per year in basic salary plus a bonus of £1.3m a year for the past three years. But Woolwich would only take the basic into account." Lenders are also checking every detail of an applicant's financial history - and if there are any blemishes, no matter how small, individuals are rejected.
http://www.guardian.co.uk/money/2009/jan/17/bankers-loan-mortgages-property
Financial sector and property workers suddenly find themselves under scrutiny from lenders. Patrick Collinson reports
Do you want a mortgage from a bank? Whatever you do, don't work there. It emerged this week that a job in a bank, once seen as a sign of financial probity, is regarded by banks themselves as a risk factor when it comes to assessing suitability for a mortgage.
Lenders are also refusing loans to people who work in the property industry - from estate agents to removal workers - amid fears of further job losses in the housing market slump.
According to mortgage brokers, Royal Bank of Scotland is rejecting applications for loans from anyone who derives more than 30% of their income from property.
When an application for a mortgage from the manager of a lettings agency was turned down, Ray Boulger of John Charcol says he quizzed RBS, and was told the criteria would apply to anyone connected to the property industry, such as conveyancing solicitors, removal workers - and even mortgage brokers.Meanwhile, Woolwich, part of the Barclays group, is understood to be turning down applications from workers across the financial services sector who rely on bonuses for a significant part of their income.
Melanie Bien of broker Savills Private Finance says: "It's basic salary only. We had a client who works for one of the big investment banks, who earns £140,000 per year in basic salary plus a bonus of £1.3m a year for the past three years. But Woolwich would only take the basic into account." Lenders are also checking every detail of an applicant's financial history - and if there are any blemishes, no matter how small, individuals are rejected.
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Is the Government initiative designed to reintroduce riskier lending, despite the FSA's remitt to align the industry with responsible lending?0
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I’m sure that there are better shandenfreude stories out there Carol
Lenders are also refusing loans to people who work in the property industry - from estate agents to removal workers - amid fears of further job losses in the housing market slump.
According to mortgage brokers, Royal Bank of Scotland is rejecting applications for loans from anyone who derives more than 30% of their income from property. When an application for a mortgage from the manager of a lettings agency was turned down, Ray Boulger of John Charcol says he quizzed RBS, and was told the criteria would apply to anyone connected to the property industry, such as conveyancing solicitors, removal workers - and even mortgage brokers.
This either very poor journalism or very poor choice of thread title. None of the above jobs are bank employees but people that directly earn from property.
Meanwhile, Woolwich, part of the Barclays group, is understood to be turning down applications from workers across the financial services sector who rely on bonuses for a significant part of their income.
Melanie Bien of broker Savills Private Finance says: "It's basic salary only. We had a client who works for one of the big investment banks, who earns £140,000 per year in basic salary plus a bonus of £1.3m a year for the past three years. But Woolwich would only take the basic into account." Lenders are also checking every detail of an applicant's financial history - and if there are any blemishes, no matter how small, individuals are rejected.
Again some poor journalism, it is not because they are bank employees that they are being rejected for loans but because they cannot guarantee any bonuses and are only taking basic salaries. This may have been done previously by lenders but as we know they are tightening up their lending criteria. This is not restricting just bank employees to loans but all sectors who get paid bonuses.0
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