Responsible Lending - NOT

Gem_

I have just re-mortgaged my property with Natwest. Very happy with the deal they offered but was appalled by their lack of "responsible lending".

When I called them they actively encouraged me to take out additional borrowing "you could pay off loans, have a holiday etc" they should be ashamed of encouraging me into debt. They offered me £12,000 on the spot with no credit check, proof of income etc!

(I don’t even have a job so how on earth they would think I could pay it back I have no idea )

No wonder people get into debt when they hand out money like this....

Gem

SAP_Saver

I think this is awful - how many people will just accept this and take the loan thinking that this is a favour. I thik that cross product selling should be banned for financial institutions on products that actually do not benefit your finances! Get a petition going guys...

MortgageMamma

You cant blame an advisor for trying to sell, I mean, if he was trying to sell to a mentally incapacitated person then fine, call that unscrupulous. As for selling to individuals with a full faculty, they should be able to sell what they like, as any individual of sound mind is able to say no.

Responsible lending "my @rse", why the hell should a lender be made responsible for lending money to people who can't keep control of their own spending/finances?

It's time the British public stopped whinging about how easy it is to borrow and end up in debt and learn to live within their means!

Ian_W

MortgageMamma wrote: You cant blame an advisor for trying to sell, I mean, if he was trying to sell to a mentally incapacitated person then fine, call that unscrupulous. As for selling to individuals with a full faculty, they should be able to sell what they like, as any individual of sound mind is able to say no.

:T Quite right, too!! Add a few endowments and a dodgy pension at the same time if you can. If peeps are too thick to realise that paying for a holiday on the mortgage will take 25yrs to pay off - that's their stupid look-out I say.

Can't understand why people equate IFA's and mortgage advisers to Arfur Daley, all they're doing is selling, whats it matter if customers get ripped off -so long as the adviser gets a good butty out of it.

Responsible lending "my @rse", why the hell should a lender be made responsible for lending money to people who can't keep control of their own spending/finances?

:j That's right too. And when the sap can't pay I'd repo their house, serves them right they won't be able to get another mortgage for years. There always be another mug along to take their place.

It's time the British public stopped whinging about how easy it is to borrow and end up in debt and learn to live within their means!

Hey, now steady on. Could put salesfolk out of a job encouraging peeps to live within their means. You're beginning to sound like one of them FSA/FSO types with all that stupid regulation and stuff, I'd ignore it myself and just concentrate on what you're good at SELLING - mortgages, pensions, investments, insurance - stack em high, sell em cheap and never give a sucker an even break.

Dunston, payless etc - who needs anti-broker enemies :mad: , with "friends" :rolleyes: like this posting?

Yer couldn't make it up. :rotfl:

Garry_Anderson

MortgageMamma wrote:

You cant blame an advisor for trying to sell, I mean, if he was trying to sell to a mentally incapacitated person then fine, call that unscrupulous. As for selling to individuals with a full faculty, they should be able to sell what they like, as any individual of sound mind is able to say no.

Responsible lending "my @rse", why the hell should a lender be made responsible for lending money to people who can't keep control of their own spending/finances?

It's time the British public stopped whinging about how easy it is to borrow and end up in debt and learn to live within their means!

This was a serious post?

You honestly advocate lenders taking advantage of stupid people who cannot control their spending?

Barney088

By the tone of the original post it looks like you didn't take the money, so well done for seeing through this. Responsible lending is something that lenders will take seriously and would do something about. Well, if there was a problem or you complained.

You can bet your bottom dollar the person who "upsold" to you was on some kind of performance related bonus to create money for the Bank.

As for stupid people, brokers and lenders are supposed to be out there to help, by all means offer the opportunity to consolidate loans or take that lovely holiday but the implications should be made clear.

It's the same most places you go, fast food restaurants will "upsell" you a large fries but the implcations are not too disasterous, financially speaking.

I'd love to know how you got a mortgage with no income........

Dumbledore55

MortgageMamma wrote:

You cant blame an advisor for trying to sell, I mean, if he was trying to sell to a mentally incapacitated person then fine, call that unscrupulous. As for selling to individuals with a full faculty, they should be able to sell what they like, as any individual of sound mind is able to say no.

Responsible lending "my @rse", why the hell should a lender be made responsible for lending money to people who can't keep control of their own spending/finances?

It's time the British public stopped whinging about how easy it is to borrow and end up in debt and learn to live within their means!

Key word 'adviser' NOT salesperson......we should get proper advice and not just the hard sell.

Garry_Anderson

Dumbledore55 wrote:

Key word 'adviser' NOT salesperson......we should get proper advice and not just the hard sell.

Well - MortgageMamma is an "Independent Mortgage Specialist" - nuff said.

MortgageMamma

For clarification:

everyone is entitled to their opinion and thats mine. people should take responsibility for their own finances, and its true, people are able to say no thanks. The advisor was probably just asking in a round about way if the client had further requirements. I'm sure the client would have been complaining too if she hadn;t been able to get the mortgage, as her circumstances don't really warrant it being unemployed so again I don't understand how thats happened.

People are so quick to complain these days at the smallest thing with regards to lenders, and generally the things they complain against are things they have control of, i.e. whether or not to enter into a contract. We are becoming a compensation culture just like the united states, and it won't be long before companies fold under the pressure, and it's all down to people playing dumb and looking for something to sue for. Watch out, there's a crack in the pavement .....oh I'll fall over and sue the council it's their fault! Its all becoming too common. Consumer protections a good thing, but nannying people and giving them comeback for making their own mistakes throught their own informed choices is something else.

Ember999

Just a thing for you all to think about here when you are quoting 'irresponsible' lending. Some of us out here don't want to have to wait for all these checks you say they should make. Not everyone tries to borrow what they cannot afford. When we have applied for something we expect to get a decision immediately and thankfully we always do. If people borrow what they cannot afford it is their fault not the banks. I have thousands and I mean thousands of pounds in available credit available to me to abuse if I wanted to...immediate thought almost £40,000 in available credit on my credit cards, yet I only use 1 at a time and always pay off in full with a max running balance of £500. So why should someone like me have to wait for loads of checks on my financial status before a decision is made? You are trying to punish the people who handle credit well because of the one's that don't. We have never had to show proof of earnings when applying for a loan/credit card etc. and If I had been asked to I would have taken my business elsewhere. Often have been offered loans - they come in the post weekly at very preferential rates and I don't sign the form because I don't want it or need it. So why can't people on here who can't afford credit do the same? Banks and credit card companies are not to blame for people abusing credit, the person concerned is and others like me should not be punished by further checks, delays etc. My recent mortgage got passed in 24 hours, as it should be for someone with my financial standing - I am sure lot's of people who are not in debt on here would agree. You reach a certain status in life and you expect to be rewarded as such. Maybe I don't have debt because I don't spend what I cannot afford, maybe others should do the same and not keep knocking the banks.

plane_boy2000

People need to start behaving like adults. If you cant afford to repay it then what are you doing applying for it. As regards the first post not having any checks carried out etc I suspect that they were a customer of that bank and therfore they had a full picture of their ability to repay, or that they were offering a loan subject to aproval.

Consumer law needs to protect people from being miss sold things like endowments, but hey lets all fact up to our responsibilities.

I have a mortgage which is around 7 times my income, but I chose to take on that and in the event that I cant repay and myhouse gets repo'd that my fault - nobody elses