AVB Posted November 4, 2015 Report Share Posted November 4, 2015 Who has applied for a mortgage since they tightened up the rules? I have just been through the process. I feel like cutting my wrists. I don't strictly need a mortgage but with low rates why not. LTV is 20% and loan is 80% of annual income. So in my opinion low risk. Conversation goes like this: Bank - "this standing order for £15 to Vodafone, what's it for" Me - "mobile phone" Bank - "and this one for £10 to EE?" Me - "mobile phone" Bank - "British Gas for £50" Me - "er gas" Bank "Eon £100?" Me - "let me think. Electricity" And on it went. "Petplan £20?" "dog insurance" "esure £20?" "car insurance" One and a half hours later, yes one and a half hours, she says. "ooh that looks a bit tight I am not sure it will get approved". Really. This is despite me having a mortgage less than 6 months ago for more than the amount I am asking for now. I am losing the will to live. Quote Link to comment Share on other sites More sharing options...
oowee Posted November 4, 2015 Report Share Posted November 4, 2015 lol. Stick with it and it will be sorted before you know. I share your frustration with stuff like this. It seams so obvious they should just get on and do it that makes me uptight before i even start!! Quote Link to comment Share on other sites More sharing options...
imissalot Posted November 4, 2015 Report Share Posted November 4, 2015 Don't envy you mate , payed mine off mine nearly two years back Quote Link to comment Share on other sites More sharing options...
BangBangNik Posted November 4, 2015 Report Share Posted November 4, 2015 (edited) It the new European directive, all lenders have a responsibility to make sure you can afford it. It is an absolute farse. I once read of a couple who had had a mortgage for many years, never missed a payment, had a good loan to value and only wanted to borrow what they owed but it was deemed they might not be able to afford the mortgage they were applying for. In affect, the bank was telling them they couldn't afford a cheaper deal. Utter madness! Edited November 4, 2015 by BangBangNik Quote Link to comment Share on other sites More sharing options...
team tractor Posted November 4, 2015 Report Share Posted November 4, 2015 I've just renewed mine and it was soooo easy Borrowed more than I originally did and knocked 7 years off the original term for £10 less a month. Where abouts are you? I have a good contact Quote Link to comment Share on other sites More sharing options...
loriusgarrulus Posted November 4, 2015 Report Share Posted November 4, 2015 My Sister and BIL have even bigger problems with banks. Neither has ever bothered learning to drive and they don't go abroad. You try opening even a savings account without a driving licence or passport. This was with the bank they had been with for 30 years. Sister said she felt like moving banks after all the pallhaver, but no other bank would have them as they were none people and didn't exist. Quote Link to comment Share on other sites More sharing options...
Fuji Shooter Posted November 5, 2015 Report Share Posted November 5, 2015 My Sister and BIL have even bigger problems with banks. Neither has ever bothered learning to drive and they don't go abroad. You try opening even a savings account without a driving licence or passport. This was with the bank they had been with for 30 years. Sister said she felt like moving banks after all the pallhaver, but no other bank would have them as they were none people and didn't exist. Its funny how some things move on with the times and other don't. Remember when you were a bit shady if you did not have a land line number. Quote Link to comment Share on other sites More sharing options...
Twistedsanity Posted November 5, 2015 Report Share Posted November 5, 2015 We moved 12 months ago into a larger more valuable property, we put £150k cash up and "ported" our existing mortgage of just under 100k so there was an extra 200k in equity in the new property, the hoops we had to jump through we're just ridiculous, 2 hour phone interview etc. And we weren't even asking to borrow any more than we had already on the mortgage just swapping it to a more valuable property. I pity anyone who has not already got a foot on the ladder now Quote Link to comment Share on other sites More sharing options...
AVB Posted November 5, 2015 Author Report Share Posted November 5, 2015 I understand that the Banks needed to tighten things up. But the way they are going about things now is missing the point. Normally they take a risk based approach. That seems to have gone out of the window. And I work for a bank. Just not a normal one. Quote Link to comment Share on other sites More sharing options...
leeds chimp Posted November 5, 2015 Report Share Posted November 5, 2015 doing it now as doing a transfer of equity.....not happy Quote Link to comment Share on other sites More sharing options...
grrclark Posted November 5, 2015 Report Share Posted November 5, 2015 I understand that the Banks needed to tighten things up. But the way they are going about things now is missing the point. Normally they take a risk based approach. That seems to have gone out of the window. And I work for a bank. Just not a normal one. The problem is stupid people within the organisational hierarchy. Behind it all there will undoubtably be some sound processes and procedures in place that appropriately assess risk and should make lending a straightforward affair, but that is then handed off to people to administer and they will choose to interpret the processes and add their own spin and flavour and that then becomes further influenced as it is distributed to more people to manage the interaction with the customer. Ultimately that has the end result that you have to sit for 90 mins answering banal questions that make not a jot of difference to the application, but the person sitting in front of you thinks it is the most important thing in the world. Every single organisation in the world has the same problem, there are just too many stupid people. Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted November 5, 2015 Report Share Posted November 5, 2015 The problem is stupid people within the organisational hierarchy. Behind it all there will undoubtably be some sound processes and procedures in place that appropriately assess risk and should make lending a straightforward affair, but that is then handed off to people to administer and they will choose to interpret the processes and add their own spin and flavour and that then becomes further influenced as it is distributed to more people to manage the interaction with the customer. Ultimately that has the end result that you have to sit for 90 mins answering banal questions that make not a jot of difference to the application, but the person sitting in front of you thinks it is the most important thing in the world. Every single organisation in the world has the same problem, there are just too many stupid people. MY GOD! Finally someone who see's the world the same way that I am starting too. The more people I meet as I'm going through life, the more I wonder how some of them still manage to work out how to breath Quote Link to comment Share on other sites More sharing options...
grrclark Posted November 5, 2015 Report Share Posted November 5, 2015 MY GOD! Finally someone who see's the world the same way that I am starting too. The more people I meet as I'm going through life, the more I wonder how some of them still manage to work out how to breath Haha careful, you are too young to be a grumpy old man I am being a little unkind, it is not so much that people are stupid, although very many are, it is just that they are rather myopic and don't consider the wider picture. That can be applied to absolutely everything that involves people. Quote Link to comment Share on other sites More sharing options...
al4x Posted November 5, 2015 Report Share Posted November 5, 2015 We went through it straight after the rules were tightened and it was a nightmare. We were after 40% ltv but everything possible went against us including the house my other half owns with a 2k mortgage on it.... Quote Link to comment Share on other sites More sharing options...
clakk Posted November 5, 2015 Report Share Posted November 5, 2015 we went through hoopz to get a mortgage,then 2 weeks later the dumb*** at the building society rings to tell us she,s dropped a googly <her mistake not ours>can we find another £8,500 as we wont get the mortgage without it.and when challenged over why she drivelled an waffled a no sense answer.Luckily we could but that was the decorating /moving money gone.no apologies nothing .not allowed to post what i really feel about the ....as il get banned Quote Link to comment Share on other sites More sharing options...
chris1961 Posted November 5, 2015 Report Share Posted November 5, 2015 The best part about a mortgage is the letter that drops through the letterbox 25 years later telling you it's finished Yay Quote Link to comment Share on other sites More sharing options...
The Mighty Prawn Posted November 5, 2015 Report Share Posted November 5, 2015 Wait until you have my situation, Wife has own company only 4 years old so couldn't get a mortgage, I earn enough to get the mortgage on my own (just some equity release for building work) and they included in my income the half that my wife pays to bills every month - so she couldn't be counted towards the mortgage, but her contribution to mine, exactly the same amount as if she was on the mortgage, counted towards my earnings mad world Quote Link to comment Share on other sites More sharing options...
loriusgarrulus Posted November 5, 2015 Report Share Posted November 5, 2015 I still love the expression on the building society person 15 years ago when we moved to this bungalow when I told her all my income was from drug money. I did then tell her I worked for a pharmaceutical company. Quote Link to comment Share on other sites More sharing options...
pimpkiller Posted November 5, 2015 Report Share Posted November 5, 2015 Got a mate who wanted to build an extension on his house and asked for 10k they said no but they would be willing to lend 60k......told them where to go Quote Link to comment Share on other sites More sharing options...
jam1e Posted November 5, 2015 Report Share Posted November 5, 2015 We owe around 30% of the value of our house. I did some sums and liked how much quicker our mortgage would be paid off, if we made an overpayment of only a £100 per month. This was partly due to how poor the interest was on the 5 figure amount in our savings account, which we pay into every month.(Which the Building Society were aware of) Also, we have never missed a payment on anything in our lives! We were told, in their opinion we "couldn't afford the payments"!! I said it didn't make any sense, and what did he base his findings on. He said it's a "formula" they use on the computer. I said, so it's a case of "computer says no". And to his embarrassment, he admitted that was the case. It made me wonder if they were just pee'd off as our savings weren't with them? Probably not, but was just a thought..... Quote Link to comment Share on other sites More sharing options...
Cosd Posted November 5, 2015 Report Share Posted November 5, 2015 (edited) Sounds familiar. I recently moved house and wanted to port my mortgage. Similar to you I was asked a million questions including how much pocket money I give my kids. I was initially told "the computer" was refusing my mortgage application on affordability. I have had this particular mortgage for 9 years, never late or missed a payment, same jobs between me and my wife earning more money, 25% loan to value and have been paying an extra £1k every month into my mortgage for the last 2 years...... When pointed out how ridiculous this was the girl interviewing us said that she supported our case and would speak with the underwriters. We did get our mortgage at the end but to say I was peeved is an understatement. If it wasn't for the fact I didn't want to lose the house I was buying and the good rate I'm on, I would have told them to do one out of principle. Edited November 5, 2015 by Cosd Quote Link to comment Share on other sites More sharing options...
team tractor Posted November 5, 2015 Report Share Posted November 5, 2015 (edited) To the op, I have pm'd you . I have an awesome contact if anyone wants his number. He speaks sense and agreed mine in 5 minutes . He could see their is equity in my house and I'd never missed a payment. Edited November 6, 2015 by team tractor Quote Link to comment Share on other sites More sharing options...
Psyxologos Posted November 6, 2015 Report Share Posted November 6, 2015 (edited) To the op, I have pm'd you . I have an awesome contact if anyone wants his number. He speaks sense and agreed mine in 5 minutes over the phone . He could see their is equity in my house and I'd never missed a payment. Yes please! Thanks a lot. Edited November 6, 2015 by Psyxologos Quote Link to comment Share on other sites More sharing options...
Archie-fox Posted November 6, 2015 Report Share Posted November 6, 2015 I still love the expression on the building society person 15 years ago when we moved to this bungalow when I told her all my income was from drug money. I did then tell her I worked for a pharmaceutical company. drop me a pm where you work, i think we know each other.... Quote Link to comment Share on other sites More sharing options...
norfolk dumpling Posted November 6, 2015 Report Share Posted November 6, 2015 We had the same problem a couple of years back when we realised shortfall to our endowment arrangement and although funds and earnings were more than adequate for the amount involved it was the red tape to prove our earnings that nearly resulted in suicide! The lender was owned by our bank who we had been with for 44 years. All our earnings - 2 pensions, wages from 2 p/t jobs, disabled sons benefits etc - all passed through the bank but the lender made us go through several hoops to prove the source of our income. So stupid were some of the letters I complained to CEO and got £500 compensation. Jobsworths overreacting to rules so if you are unhappy with stupid requests complain. Quote Link to comment Share on other sites More sharing options...
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