Imposed mortgage conditions
Discussion
CSLchappie said:
I don't have it to hand at the moment, however I don't see how they can claim its down to affordability, the new mortgage and cars only account for 42% of our monthly income, both of us are in stable jobs, absolutely no history of bad credit, no dependents or expensive hobbies (aside from running a v10...) What's more annoying is that the more expensive car is with the same bloody bank!
There was a thread a few weeks back on how much of your combined went on a mortgage 42% would put you at the top of that thread. IMO that's a lot. What if one of you lost your job or became sick that 42% then rockets. CSLchappie said:
I don't have it to hand at the moment, however I don't see how they can claim its down to affordability, the new mortgage and cars only account for 42% of our monthly income, both of us are in stable jobs, absolutely no history of bad credit, no dependents or expensive hobbies (aside from running a v10...) What's more annoying is that the more expensive car is with the same bloody bank!
There was a thread a few weeks back on how much of your combined went on a mortgage 42% would put you at the top of that thread. IMO that's a lot. What if one of you lost your job or became sick that 42% then rockets. BoRED S2upid said:
CSLchappie said:
I don't have it to hand at the moment, however I don't see how they can claim its down to affordability, the new mortgage and cars only account for 42% of our monthly income, both of us are in stable jobs, absolutely no history of bad credit, no dependents or expensive hobbies (aside from running a v10...) What's more annoying is that the more expensive car is with the same bloody bank!
There was a thread a few weeks back on how much of your combined went on a mortgage 42% would put you at the top of that thread. IMO that's a lot. What if one of you lost your job or became sick that 42% then rockets. If one of you loses their job or gets ill, you're going to be screwed.
The Bank want to ensure that if this happens then they are not fixed with an exposure which isn't secured.
But its not 42% - its 31% and we have various provisions for those circumstances, one of which under the bank's request would be significantly reduced... i.e reducing our fast access savings, and I'll reiterate the point about having a significant chunk of equity in the house.
The affordability issue needs to be put into perspective, even after all our commitments are met we have a substantial amount of money left over each month, 30-40% of net household income on a mortgage may be a stretch for a household earning 25-30k, for my circumstances its not.
The affordability issue needs to be put into perspective, even after all our commitments are met we have a substantial amount of money left over each month, 30-40% of net household income on a mortgage may be a stretch for a household earning 25-30k, for my circumstances its not.
Soov535 said:
And that's the crux of it.
If one of you loses their job or gets ill, you're going to be screwed.
The Bank want to ensure that if this happens then they are not fixed with an exposure which isn't secured.
If one of you loses their job or gets ill, you're going to be screwed.
The Bank want to ensure that if this happens then they are not fixed with an exposure which isn't secured.
I don't doubt it - but the bank are now obliged to play it safe and to only expose themselves to certain amounts of risk.
As I said, the public need to be careful what they bay for.
CSLchappie said:
But its not 42% - its 31% and we have various provisions for those circumstances, one of which under the bank's request would be significantly reduced... i.e reducing our fast access savings, and I'll reiterate the point about having a significant chunk of equity in the house.
The affordability issue needs to be put into perspective, even after all our commitments are met we have a substantial amount of money left over each month, 30-40% of net household income on a mortgage may be a stretch for a household earning 25-30k, for my circumstances its not.
The affordability issue needs to be put into perspective, even after all our commitments are met we have a substantial amount of money left over each month, 30-40% of net household income on a mortgage may be a stretch for a household earning 25-30k, for my circumstances its not.
Soov535 said:
And that's the crux of it.
If one of you loses their job or gets ill, you're going to be screwed.
The Bank want to ensure that if this happens then they are not fixed with an exposure which isn't secured.
If one of you loses their job or gets ill, you're going to be screwed.
The Bank want to ensure that if this happens then they are not fixed with an exposure which isn't secured.
Soov535 said:
Remember all the screaming and shouting about irresponsible bankers lending too much.
This is what happens.
Rubbish - the bankers were just evil. And then we had to BAIL THEM OUT with OUR money because they made some irresponsible loans.This is what happens.
I NEVER want that to happen again.
NOW THEY WON'T LEND TO ME AT 105% LTV with my self-assessed affordability - WTF???????
EVIL BANKERS WON'T LEND.
ALL BANKERS ARE EVIL, THEY ARE SLOWING THE ECONOMY DOWN WITH THEIR RIDICULOUS QUESTIONS.
Source: I work in finance. Am evil.
CSLchappie said:
But its not 42% - its 31% and we have various provisions for those circumstances, one of which under the bank's request would be significantly reduced... i.e reducing our fast access savings, and I'll reiterate the point about having a significant chunk of equity in the house.
The affordability issue needs to be put into perspective, even after all our commitments are met we have a substantial amount of money left over each month, 30-40% of net household income on a mortgage may be a stretch for a household earning 25-30k, for my circumstances its not.
It doesn't matter. Even remortgages are pretty much treated like you are fresh off the street with no past history. The affordability issue needs to be put into perspective, even after all our commitments are met we have a substantial amount of money left over each month, 30-40% of net household income on a mortgage may be a stretch for a household earning 25-30k, for my circumstances its not.
It's all from a clean slate every time now basically.
The fact is the bank hold all the aces, they can impose whatever terms they wish.
Gone are the days when banks/building societies were an easy touch dishing out mortgages left right and centre. They have had their fingers burnt too many times.
You may not think so now, but as well as protecting themselves they are trying to protect you in case your personal circumstances change in the future.
People can and do lose their jobs for whatever reason.
Good luck anyway, and I hope you eventually purchase the house....
Gone are the days when banks/building societies were an easy touch dishing out mortgages left right and centre. They have had their fingers burnt too many times.
You may not think so now, but as well as protecting themselves they are trying to protect you in case your personal circumstances change in the future.
People can and do lose their jobs for whatever reason.
Good luck anyway, and I hope you eventually purchase the house....
Cheers, the frustration comes from the fact that the offer for a mortgage in principal was made prior to buying (with all cards on the table in terms of finances) now we've bought they've decided to roll out these extra conditions without ANY chance discussion, as I've said we could structure it so that we borrow less but they aren't having any of it, it all feels one way into heaping more borrowing onto us via the mortgage at a lower LTV than needed.
The bank have now confirmed that the cars will need to be paid off prior to completion so that pretty much kills the deal. There is a silver lining though, we have another buyer whose offer is 10k higher than the one we accepted, so if our original buyer walks its not the end of the world.
The bank have now confirmed that the cars will need to be paid off prior to completion so that pretty much kills the deal. There is a silver lining though, we have another buyer whose offer is 10k higher than the one we accepted, so if our original buyer walks its not the end of the world.
Wacky Racer said:
The fact is the bank hold all the aces, they can impose whatever terms they wish.
Gone are the days when banks/building societies were an easy touch dishing out mortgages left right and centre. They have had their fingers burnt too many times.
You may not think so now, but as well as protecting themselves they are trying to protect you in case your personal circumstances change in the future.
People can and do lose their jobs for whatever reason.
Good luck anyway, and I hope you eventually purchase the house....
Gone are the days when banks/building societies were an easy touch dishing out mortgages left right and centre. They have had their fingers burnt too many times.
You may not think so now, but as well as protecting themselves they are trying to protect you in case your personal circumstances change in the future.
People can and do lose their jobs for whatever reason.
Good luck anyway, and I hope you eventually purchase the house....
Wacky Racer said:
The fact is the bank hold all the aces, they can impose whatever terms they wish.
Sort of. I still suspect that without the FCA imposing new rules they would be handing mortgages out like candy.All they want are fees and to do the minimum work necessary to send the money out the door.
The post April-2014 system appears hugely onerous which is reflected in the spike on this chart.
CSLchappie said:
I appreciate different lenders will have different criteria for 'affordability' but there does seem to be a substantial gap with Lloyds, as I said been vetted by another high street bank with no problems, we were also pre-approved by an IFA as a prerequisite to putting the offer in on the new house, again no issues, affordability perfectly fine and we could have taken out a much higher mortgage (albeit over a longer term) if we wanted.
Santander gave us an agreement in principle for our current mortgage. When it came to processing the mortgage they dropped the amount they would lend (compared to the agreement in principle) by nearly £100k. We had to cover that shortfall to complete the purchase. Just because they say they will offer you X doesn't mean they actually will, it seems common for the original offer to be reduced substantially when it comes to finalising the loan.foxsasha said:
Santander gave us an agreement in principle for our current mortgage. When it came to processing the mortgage they dropped the amount they would lend (compared to the agreement in principle) by nearly £100k. We had to cover that shortfall to complete the purchase. Just because they say they will offer you X doesn't mean they actually will, it seems common for the original offer to be reduced substantially when it comes to finalising the loan.
Lenders only change what they are prepared to offer when the information provided for the full application differs to what is provided in the AIP.I could get anyone an AIP for £1m today if they tell me they earn £500k a year. However, that £1m is going to be reduced if the payslips and bank statements don't back up what is in the AIP.......
Sarnie said:
foxsasha said:
Santander gave us an agreement in principle for our current mortgage. When it came to processing the mortgage they dropped the amount they would lend (compared to the agreement in principle) by nearly £100k. We had to cover that shortfall to complete the purchase. Just because they say they will offer you X doesn't mean they actually will, it seems common for the original offer to be reduced substantially when it comes to finalising the loan.
Lenders only change what they are prepared to offer when the information provided for the full application differs to what is provided in the AIP.I could get anyone an AIP for £1m today if they tell me they earn £500k a year. However, that £1m is going to be reduced if the payslips and bank statements don't back up what is in the AIP.......
Soov535 said:
Sarnie said:
foxsasha said:
Santander gave us an agreement in principle for our current mortgage. When it came to processing the mortgage they dropped the amount they would lend (compared to the agreement in principle) by nearly £100k. We had to cover that shortfall to complete the purchase. Just because they say they will offer you X doesn't mean they actually will, it seems common for the original offer to be reduced substantially when it comes to finalising the loan.
Lenders only change what they are prepared to offer when the information provided for the full application differs to what is provided in the AIP.I could get anyone an AIP for £1m today if they tell me they earn £500k a year. However, that £1m is going to be reduced if the payslips and bank statements don't back up what is in the AIP.......
But it does happen on a lesser scale.......I often ask people for their annual basic salary......£50k is the response.....but then the pay slips arrive and it's £40k basic and £10k commission/overtime/bonus........
Sarnie said:
Soov535 said:
Sarnie said:
foxsasha said:
Santander gave us an agreement in principle for our current mortgage. When it came to processing the mortgage they dropped the amount they would lend (compared to the agreement in principle) by nearly £100k. We had to cover that shortfall to complete the purchase. Just because they say they will offer you X doesn't mean they actually will, it seems common for the original offer to be reduced substantially when it comes to finalising the loan.
Lenders only change what they are prepared to offer when the information provided for the full application differs to what is provided in the AIP.I could get anyone an AIP for £1m today if they tell me they earn £500k a year. However, that £1m is going to be reduced if the payslips and bank statements don't back up what is in the AIP.......
But it does happen on a lesser scale.......I often ask people for their annual basic salary......£50k is the response.....but then the pay slips arrive and it's £40k basic and £10k commission/overtime/bonus........
Soov535 said:
Sarnie said:
Soov535 said:
Sarnie said:
foxsasha said:
Santander gave us an agreement in principle for our current mortgage. When it came to processing the mortgage they dropped the amount they would lend (compared to the agreement in principle) by nearly £100k. We had to cover that shortfall to complete the purchase. Just because they say they will offer you X doesn't mean they actually will, it seems common for the original offer to be reduced substantially when it comes to finalising the loan.
Lenders only change what they are prepared to offer when the information provided for the full application differs to what is provided in the AIP.I could get anyone an AIP for £1m today if they tell me they earn £500k a year. However, that £1m is going to be reduced if the payslips and bank statements don't back up what is in the AIP.......
But it does happen on a lesser scale.......I often ask people for their annual basic salary......£50k is the response.....but then the pay slips arrive and it's £40k basic and £10k commission/overtime/bonus........
And getting it every month, doesn't mean it's guaranteed......
Sarnie said:
Soov535 said:
Sarnie said:
Soov535 said:
Sarnie said:
foxsasha said:
Santander gave us an agreement in principle for our current mortgage. When it came to processing the mortgage they dropped the amount they would lend (compared to the agreement in principle) by nearly £100k. We had to cover that shortfall to complete the purchase. Just because they say they will offer you X doesn't mean they actually will, it seems common for the original offer to be reduced substantially when it comes to finalising the loan.
Lenders only change what they are prepared to offer when the information provided for the full application differs to what is provided in the AIP.I could get anyone an AIP for £1m today if they tell me they earn £500k a year. However, that £1m is going to be reduced if the payslips and bank statements don't back up what is in the AIP.......
But it does happen on a lesser scale.......I often ask people for their annual basic salary......£50k is the response.....but then the pay slips arrive and it's £40k basic and £10k commission/overtime/bonus........
And getting it every month, doesn't mean it's guaranteed......
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