20 Questions? (How scary really are the new Rules)

coco__nutty

Hello fellow forumers,

In the recent weeks, inevitably, news have been filled with scary stories about how it will now be near-impossible to get a mortgage and how anything - as ridiculous as color of your underwear - can have an impact!

Has anyone had experience with the new process - any weird, intrusive questions?

Or is this just the usual scaremongering to freak out the masses?

We've applied through an independent mortgage broker for a mortgage with NatWest and sat down with her for about an hour - though nothing awkward was discussed, just our financial situation, what we're after, how long for etc.
Does this mean that there's a chance we might need to answer more questions directly to the bank?
Nothing bad they can ask to be honest, just wondering how much delay this is causing...

Thanks in advance!

Jes0rKah

We had our meeting at Natwest yesterday, they said that the media is over blowing it hugely and it's nothing as intrusive as it's made out to be. We were asked only 2 questions which were 'do you have any children' and 'are you expecting any major changes in circumstances' both of which are no for us.

It's media hype as usual!

ACG

Natwest have added 3-4 new questions to their process.

Not too scary is it?

A lot of it is newspapers and people looking for a story. In the main there is just the odd extra question and maybe drilling down a bit more into the affordability.

coco__nutty

Thanks, I was wondering if that was the case!

I find the questions media list as an example (how many times a week you eat steak and how often you go to cinema) extremely irrelevant as surely your mortgage and bills will be the first thing to come out after you get paid?

No one in their right might will carry on going out for meals 5 times a week and get £60 haircuts every month if they can't afford to pay the necessities?


Right???

Sorry, it's a rant - I don't get it

GMS

Media have exaggerated it unsurprisingly.

We brokers have asked the questions regarding spending for years as part of the advice process. The banks haven't so now they have had to do it there is reporting of it.

Some questions have been added and some more things are being questioned.

It is nowhere near as bad as the Daily Mail et al would have you believe. They won't ask for your shopping receipts to ask why you bought steak and how dare you have a glass of wine on a Wednesday. They will ask do you intend to continue with the gym membership, was the payment to the dog trainer a one off etc.

Be honest and clear and you have nothing to worry about.

coco__nutty

Jes0rKah wrote: »

We had our meeting at Natwest yesterday, they said that the media is over blowing it hugely and it's nothing as intrusive as it's made out to be. We were asked only 2 questions which were 'do you have any children' and 'are you expecting any major changes in circumstances' both of which are no for us.

It's media hype as usual!

PS. Good luck with your application! Would be great to know your timelines...
We applied via an independent broker 2 weeks ago and they requested 3 month bank statements (just last month submitted initially) just the other day...
Most nerve-wrecking thing I've EVER been through!

pmd123

Same story for me with Natwest, I was on the first day of the new MMR rules, and the main issue was my appointment had to be put back a couple of hours as their systems were taking ages to update.

As for the questions, I was expecting the worst after reading up on them, but there was nothing out of the ordinary, and it went through nice and easy.

I have read that different lenders are applying the new regulations differently, but can't comment on them.

coco__nutty

GMS wrote: »

Media have exaggerated it unsurprisingly.

We brokers have asked the questions regarding spending for years as part of the advice process. The banks haven't so now they have had to do it there is reporting of it.

Some questions have been added and some more things are being questioned.

It is nowhere near as bad as the Daily Mail et al would have you believe. They won't ask for your shopping receipts to ask why you bought steak and how dare you have a glass of wine on a Wednesday. They will ask do you intend to continue with the gym membership, was the payment to the dog trainer a one off etc.

Be honest and clear and you have nothing to worry about.

To be quite honest, I am absolutely not worried if they decided to ask about these things, as id say that mortgage will always come first.
As I mentioned above, my hubby and I don't have other debt (except for another mortgage which will pay for itself and then some once the flat is rented) and we really aren't stretching ourselves with the amount we're asking for!

I don't know what to make of these new guidelines. - I am 100% behind tougher checks and making sure people can afford the loans, but a lot of the time it sounds ridiculous and unreasonable!

I really hope it all works out, but as it's my first time and the house we're buying is literally PERFECT, the fear of not getting the mortgage is too much!

Thanks for your time!

coco__nutty

pmd123 wrote: »

Same story for me with Natwest, I was on the first day of the new MMR rules, and the main issue was my appointment had to be put back a couple of hours as their systems were taking ages to update.

As for the questions, I was expecting the worst after reading up on them, but there was nothing out of the ordinary, and it went through nice and easy.

I have read that different lenders are applying the new regulations differently, but can't comment on them.

Hi there, by 'went through nice and easy' do you mean you've had an offer already?
We also submitted on Monday after the new rules came into effect and have been waiting ever since (2 weeks feel like 2 years!)

GMS

There are lenders who don't ask for bank statements as a rule so less intrusive.

Natwest will above certain levels.

If there are no huge outgoings then don't worry. They may question direct debits, regular payments, unexplained credits/debits etc.

The media have it reported that if you don't live on beans on toast you will not get a mortgage. Sensationalist journalism for a change!

Answer all questions honestly and don't worry.

Good luck

coco__nutty

GMS wrote: »

There are lenders who don't ask for bank statements as a rule so less intrusive.

Natwest will above certain levels.

If there are no huge outgoings then don't worry. They may question direct debits, regular payments, unexplained credits/debits etc.

The media have it reported that if you don't live on beans on toast you will not get a mortgage. Sensationalist journalism for a change!

Answer all questions honestly and don't worry.

Good luck

Thanks again!)
We were a little bit unprepared for this purchase, as the house came up unexpectedly so maybe accounts aren't as squeaky clean as we would've liked them to be. Still, not overdrawn and clean credit histories, so TO ME it's a no brainer ... Think I should stop reading the news

Thanks again!!!