Natwest - We say yes to 9 out of 10 mortgage applications

shortchanged_2

HAMISH_MCTAVISH wrote: »

There will certainly be some of that.

The public have been bombarded with media stories over the last few years explaining the credit crunch, mortgage rationing, and therefore just how impossible it is for most young people to get a mortgage with a historically normal, prudent and sensible 5% or 10% deposit.

So most won't even bother applying.

Probably because if they have any sense they have realised the potential danger of taking out a large mortgage (because prices are high) and the current low interest rates which will eventually go up.

Conrad

No way do they accept 9/10 of all applications received and they decline a big proportion of DIPS.

There's another advert doing the rounds by Lloyds commercial that paints a completely unrealistic picture. I deal with commercial apps and a lender like Lloyds refuses the vast bulk of them.

Figure fiddling fo sure

shortchanged_2

Conrad wrote: »

No way do they accept 9/10 of all applications received and they decline a big proportion of DIPS.

There's another advert doing the rounds by Lloyds commercial that paints a completely unrealistic picture. I deal with commercial apps and a lender like Lloyds refuses the vast bulk of them.

Figure fiddling fo sure

There's no such thing as figure fiddling Conrad.

Thrugelmir

Conrad wrote: »

and they decline a big proportion of DIPS.

That's down to the borrowers credit file one assumes not the bank unwilling to lend.

Consumer debt and management of personal money affairs is a major problem. For a society weaned on buy now pay later. To actually have to save is alien to many.

The ones I struggle with are those that treat DMP's as interest free loans. Then expect lenders to advance them a mortgage.

thescouselander

HAMISH_MCTAVISH wrote: »

There will certainly be some of that.

The public have been bombarded with media stories over the last few years explaining the credit crunch, mortgage rationing, and therefore just how impossible it is for most young people to get a mortgage with a historically normal, prudent and sensible 5% or 10% deposit.

So most won't even bother applying.

On the contrary, as I explained in the other thread lenders are falling over themselves to lend and this is just further proof of this. There is no problem on the demand side of the housing market - it is the supply of reasonably priced houses that is the problem.

Thrugelmir

thescouselander wrote: »

On the contrary, as I explained in the other thread lenders are falling over themselves to lend and this is just further proof of this.

:T Are you a Labour spin doctor during the day. They could do with you!

thescouselander

Thrugelmir wrote: »

:T Are you a Labour spin doctor during the day. They could do with you!

If that's the best argument you can come up with it only convinces me further that what I said is true.

HAMISH_MCTAVISH

thescouselander wrote: »

On the contrary, as I explained in the other thread lenders are falling over themselves to lend and this is just further proof of this. .

You don't half talk some nonsense. :rotfl:

thescouselander

HAMISH_MCTAVISH wrote: »

You don't half talk some nonsense. :rotfl:

Seriously, there has never been a better time to borrow money. Ultra low interest rates, lax lending criteria vs the traditional 3 x earnings limits, plenty of cash available to the banks. Borrowers will only run into trouble if the amount they want to borrow goes beyond what is assessed to be a sensible risk by the banks.

Conrad

thescouselander wrote: »

Seriously, there has never been a better time to borrow money. Ultra low interest rates, lax lending criteria vs the traditional 3 x earnings limits, plenty of cash available to the banks. Borrowers will only run into trouble if the amount they want to borrow goes beyond what is assessed to be a sensible risk by the banks.

Come work for me, if what you say is true we'll make millions:rotfl:

Almost every case I've dealt with the last 4 weeks has been declined. One was a 60% remo, great credit, long term jobs, pretty much your goto low risk case. Declined. Why, because they rapidly escalated their card debts the last weeks to complete their extension. The whole point of the remo was to consolidate these temporary high cost debts - this was all planned for by them, but on no, computer says no as it deems sudden escalating debt a risk.

Non credit scoring lenders tend to lend very low multiples so this couple are scuppered - very typical.