Banks continue to find new and innovative ways to ration mortgages

Emy1501

HAMISH_MCTAVISH wrote: »

Oh dear.....

A young teacher buys a modest car, presumably required to get to work, and that's grounds for refusing a less than 3.5 times income mortgage?

What flipping planet do you lot live on? Because it bears no resemblance to sanity.

You really need to understand how the mortgage market works.

All lenders have different criteria when it comes to lending. Most look at credit history not credit scores. They look at your deposit, type of job you have etc. They then tend to have a basic start figure they will lend. When I last looked NW was about 4.25x max. From this they do an affordability calculator. if you have a loan of £240 a month then thats roughly 3k a year. This figure would come off net earnings for lending as you are more of a risk than someone who does not have a loan. You also deduct student loans credit cards etc.

I suspect the person in question had a bit more debt than he advised as even the loan he had would have taken him to just under 4x which when I last looked was ok for NW.

At the same time the person in question got a loan from Nat West. Of course if he had gone to a whole of the market broker to start off with it would have been explained which lenders would have provided him with a mortgage from the start and he would have probably have had an AIP within half an hour.

The fact that a person who got a mortgage without much problem is the only example you can find to support your non theory suggests that your pretty wrong about what you are saying.

Lets face it the mortgage board would be full of people trying to get advice about getting 90% mortgages if it was as hard as you are saying.