First Direct - Disaposable income percentage

maninthestreet

The_J wrote: »

First Direct are idiots. No idea why they get the praise they do.

Partly perhaps because they are responsible lenders??

The_J

maninthestreet wrote: »

Partly perhaps because they are responsible lenders??

LOL :money: good one haven't laughed like that for ages.

maninthestreet

The_J wrote: »

LOL :money: good one haven't laughed like that for ages.

http://www1.firstdirect.com/1/2/responsible-lending

The_J

Are you actually being serious? You are quoting a lenders own website that says they are responsible as fact?

maninthestreet

The_J wrote: »

Are you actually being serious? You are quoting a lenders own website that says they are responsible as fact?

You called them idiots - why? Is it because they are 'picky' about whom they choose to lend money? If so, then they are up-front about their lending policies, and that link provides an explanation. The following three points in that link may go part of the way to explain why the OP has encountered a problem when trying to obtain a mortgage from them:

• Can you afford to repay the borrowing?
• What happens if your lifestyle changes and you find yourself with less income or more costs?
• What happens if interest rates increase?

penrhyn

Perhaps having multiple bank accounts and not banking with FD are the reasons for their reticence.

Dave_Ham

And you don't think Nationwide, Halifax, Santander, Woolwich, C & G etc. subscribe to these standard criteria measure.

What I think the point is here that HSBC/First Direct have been too selective and taken this to the nth degree

I do not necessarily think they are idiots, I think they are attempting to make themselves more desirable almost a status symbol..

I think their criteria and underwriting has become silly as I said and there use of Countrywide and specific conveyancing panel has allienated pretty much the industry... and specific house buyers on here...

The_J

maninthestreet wrote: »

You called them idiots - why? Is it because they are 'picky' about whom they choose to lend money? If so, then they are up-front about their lending policies, and that link provides an explanation. The following three points in that link may go part of the way to explain why the OP has encountered a problem when trying to obtain a mortgage from them:

• Can you afford to repay the borrowing?
• What happens if your lifestyle changes and you find yourself with less income or more costs?
• What happens if interest rates increase?

No, I called them idiots because, from experience, they haven't got the first clue about affordability regardless of what they say.

As someone else has said, all banks do this (they are required to) and generally, they all do it badly.

betmunch

maninthestreet wrote: »

Partly perhaps because they are responsible lenders??

Surely its irresponsible to quote one borrowing figure on their affordability calculator and then another, lower figure, when they are underwriting?

If they made their affordability calulator accurate then they wouldnt have the bad reputation for lending, other lenders have theirs accurate, why cant First Direct?

They cause people to get extra un-necessary credit searches, which damages the credit file therefore could cause rejection from a subsiquent lender. This also delays the home buying process so will put vendors backs up risking the purchase.

I would say that is irresponsible.

Getting accurate figures pre-application, while accounting for the other bits you quoted, now that is responsible

sebtomato

I can surely confirm that First Direct are very picky when it comes to mortgages.

I took an offset mortgage with them, and my LTV was about 45% (very large deposit). The income multiple for the amount borrowed was less than x 1.5

Perfect credit rating, never had any overdraft, saving about 30% of my pay each month etc

During the application, they still called me about three times for 45 min each time, asking questions about deductions on pay slips, specific bank transfers on my various accounts etc. They gave the mortgage at the end, but I was amazed by the due dilligence they went through, for what I though was a very good application.

Great bank in term of service, but clearly, they are really picky for mortgages, hence the best market rates. I guess they don't want trouble from their customers, or people defaulting, and therefore it is cheaper for them to provide mortgages.