We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
New mortgage lending rules come in this weekend
Comments
-
Do you have to go through this sh*t every time your fixed rate comes to an end ?Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0
-
The banks will no doubt let the FCA think that we have entered a brave new world of prudence and caution, whilst actually splurging out loans willy-nilly in order to meet their targets and secure their bonuses.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
GeorgeHowell wrote: »The banks will no doubt let the FCA think that we have entered a brave new world of prudence and caution, whilst actually splurging out loans willy-nilly in order to meet their targets and secure their bonuses.
I can tell you the news from the front line is it is very much harder to get a mortgage these days and caution is woven deeply into the system.
Had a chap declined yesterday for the offence of having had an agreed payment holiday some five years ago.0 -
GeorgeHowell wrote: »The banks will no doubt let the FCA think that we have entered a brave new world of prudence and caution, whilst actually splurging out loans willy-nilly in order to meet their targets and secure their bonuses.
How would reckless lending get me a bigger bonus?0 -
How would reckless lending get me a bigger bonus?
What planet have you been on for the last five years ?No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
I can tell you the news from the front line is it is very much harder to get a mortgage these days and caution is woven deeply into the system.
Had a chap declined yesterday for the offence of having had an agreed payment holiday some five years ago.
We've had mortgage rationing before. As far back as the 1970s there were periods of waiting lists etc. It's all about supply and demand. At the moment mainly because of historically low interest rates the demand for mortgages exceeds supply. This questionnaire business is a "worthy" way of ratioining. When rates go up and bank staff struggle to meet their lending targets they will find a way to ensure that more people meet the affordability criteria.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
We have rules like this in Aus and it works well or at least seems to in that none of the big Aussie banks went bust.
The 'take away' bit isn't meant to be taken literally I don't think. However, we get asked what we pay for child care, school fees, gym memberships, Foxtel (Sky) and other subscriptions, groceries and food (I guess there are your takeaways) as well as existing credit commitments.
The interesting part here is that any unspent credit limit on your credit card reduces the amount you can borrow. The bank has to assume that on moving in you will instantly go out and spend up to your limit on new furniture and little posters that say I
Financial Stability Councils. 0 -
GeorgeHowell wrote: »What planet have you been on for the last five years ?
Earth. Working in an investment bank, and thuus pretty well qualified to know what does and does not affect my bonus (or lack thereof)...
So, I'll ask again, how does reckless lending get me a bigger bonus? I know of course that it doesn't, but am curious as to what weird thinking on your part makes you believe that it does.0 -
GeorgeHowell wrote: »We've had mortgage rationing before. As far back as the 1970s there were periods of waiting lists etc. It's all about supply and demand. At the moment mainly because of historically low interest rates the demand for mortgages exceeds supply. This questionnaire business is a "worthy" way of ratioining. When rates go up and bank staff struggle to meet their lending targets they will find a way to ensure that more people meet the affordability criteria.
if there is truely a shortage of money for mortgages, one wonders why it's price is so low.0 -
However I think that looking at things like holidays and meals out is slightly over the top because most people budget for their bills and mortgage before deciding on luxury spends so if they can no longer afford/justify a takeaway twice a month most people would be happy to sacrifice it if it means paying the mortgage/being approved for one.
Surely stuff like this will be offset by how much an applicant can show that they are saving, or have left at the end of the month.
If you have an applicant that is constantly seeing their account hit £0 the day before payday, it surely casts doubt over their ability to cope with, for example, an interest rate rise.
I really don't think that this is as big a reform as it is being made out. It is simply a case of lenders having to be much more careful over who they lend to.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards