First Direct major change in lending criteria

enevel

FD have upped their minimum income for a lone mortgage applicant from £30k to £50k; for a couple it's risen from £50k to £75k.

Interesting hike, from a bank which proclaims on it's homepage: "Our mortgage rates are lower than a rapper's jeans." Wonder how many of the UK's richest 10% that constitute their new target market would have the yoofy credentials the bank's advertising creatives have been told to aim for.

And I wonder how many of the bank's existing customers will find, at the end of their existing rate, that they no longer fit the criteria. The Leeds-based bank seems to be clear that it only wants to secure the properties of those at the top-end of the London labour market.

MoneySaverLog

Where is this coming from?

Thrugelmir

Suggests that HSBC are looking to cut back on mortgage lending. Part of their announced derisking exercise. Existing customers will more then likely be uneffected.

Morgage_Confused

Not correct.....nothing has changed in ages as far as I can remember its always been....

"Sole applicants must have a minimum salary of £50,000. Joint applicants must either have a minimum combined salary of £75,000, or one party have an individual salary of £50,000 or more."

goosander

I think that requirement only applies to their offset mortgages.

kingstreet

goosander wrote: »

I think that requirement only applies to their offset mortgages.

I agree. AIUI it was tightened as their offset product is interest-only and it mirrors what other lenders have done on the IO issue.

michaels

The premium for offset products is also much higher than it used to be incentivising people to move on to repayment products even thought these are extremely inflexible at FD.

If I were to stay with them it would have to be on the existing offset tracker as they would only lend about 60% of my current mortgage to me now even though I earn more and the properrty is worth much more than when they granted the mortgage 3 years ago.

enevel

Morgage_Confused wrote: »

Not correct.....nothing has changed in ages as far as I can remember its always been....

"Sole applicants must have a minimum salary of £50,000. Joint applicants must either have a minimum combined salary of £75,000, or one party have an individual salary of £50,000 or more."

Afraid you're the one who is incorrect here.

It was £30k single/£50k joint when I took mine out; and the same when I remortgaged two months ago.

kingstreet

enevel wrote: »

Afraid you're the one who is incorrect here.

It was £30k single/£50k joint when I took mine out; and the same when I remortgaged two months ago.

... and is it offset only, which is different?

penguingirl

We were looking at their mortgage calculator about a month or so ago and noticed that it now said 50k/75k- made me wonder how we ever got offered a mortgage with them in the first place (4 years ago)