Radio 4 Money Box - New Mortgage Affordability Checks

esmerellda

On Radio 4 now!! Money Box talking about new mortgage affordability checks :T

http://www.bbc.co.uk/programmes/b043tg9p

http://legalbeagles.info/bbc-radio-4-money-box-mortgage-confusion-for-pregnant-women-and-product-trials-that-cost-you-dear/

Who thinks these new checks are fair?

betmunch

Missed it.

They are on to trial subscriptions or something now.

Is this going to pop up on the iplayer?

Thrugelmir

Should be on the Iplayer soon.

betmunch

Cheers.

Thats how you want to spend your weekend. In the office, doing mortgage admin, listening to mortgage news.

Sometimes I worry I am too cool!

Thrugelmir

esmerellda wrote: »

Who thinks these new checks are fair?

What checks are you referring to? The article covered no new ground.

betmunch

I was under the impression that the lender had to be satisfied the applicant could afford the mortgage.

Why is big Ray saying its up to the applicant to decide they can afford the mortgage when their little bundle of joy arrives?

If the lender asks about changes in income or expenditure then having a baby is a big one, if that change then determines they are not happy doing the lending thats their criteria, and as long as it is applied across the board the its TCF.

Obviously this will only apply to couples that are pregnant at the point of application, but that doesnt make it discrimination, its prudent lending.

If a pregnant couple can show the new baby isnt going to affect their finances then they still get the mortgage. Likewise if a not pregnant couple say they are expecting a change in circumstances that will change their outgoings or income this will affect their chances of getting the mortgage

kingstreet

In such circumstances, I check affordability with an without a dependent and see how it's affected.

Thrugelmir

betmunch wrote: »

I was under the impression that the lender had to be satisfied the applicant could afford the mortgage.

Why is big Ray saying its up to the applicant to decide they can afford the mortgage when their little bundle of joy arrives?

If the lender asks about changes in income or expenditure then having a baby is a big one, if that change then determines they are not happy doing the lending thats their criteria, and as long as it is applied across the board the its TCF.

Obviously this will only apply to couples that are pregnant at the point of application, but that doesnt make it discrimination, its prudent lending.

If a pregnant couple can show the new baby isnt going to affect their finances then they still get the mortgage. Likewise if a not pregnant couple say they are expecting a change in circumstances that will change their outgoings or income this will affect their chances of getting the mortgage

If I heard correctly, an increase in borrowing was also being sought. So the article itself was selective in the areas it covered.

betmunch

Thrugelmir wrote: »

If I heard correctly, an increase in borrowing was also being sought. So the article itself was selective in the areas it covered.

Yeah 20 grand extra, while the applicants said their costs would increase and could give detailed figures on what/when/if the wife would earn at the end of maternity leave if I heard correctly.

I dont like Clydesdale at the best of times, but from the info in the report, I'm totally on their side on this one

amnblog

Did Ray suggest 'don't tell 'em'?

betmunch

amnblog wrote: »

Did Ray suggest 'don't tell 'em'?

To be fair he said only tell them what they ask.

Most lenders are going to ask if there are any circumstances that would change income or expenditure, obviously having a baby would be included in this.

I dont know the Clydesdale application well enough to know if they ask the question.

But have done a NatWest application today so can say for sure they do.