This week’s comment comes from Bart, in response to the news that the Bank of England will have a consultation into its affordability test next year. This move was widely welcomed by trade bodies like AMI, IMLA and BSA.
Bart said: “This seems like not the best news for the intermediary business. Removing affordability tests will definitely help the buyers, but more importantly the lenders will be able to do more direct business. Surprised AMI didn’t object this idea.”
Sox added: “The issue is not really with mortgage lending; it is the unregulated unsecured debt that causes people to get into difficulty. Credit cards and loans are provided in most cases without the need to even provide a payslip. As a responsible adviser I never let people stretch themselves and talk in a lot of detail around budget and ‘other’ costs.
“I have many people approach me with vast levels of unsecured debt up to £30,000 even £50,000 that they have been allowed to take without any checks at all it seems, just based on the fact they have a good credit score. The impact of maintaining these debts, even on zero per cent finance is what takes the clients outside affordability. The FCA would be better placed to look into that, and gambling.”
The second comment came after the news that Royal Institution of Chartered Surveyors (RICS) would not be removing its guidance for low-rise buildings to be subject to EWS1 checks.
SS said: “Expecting RICS, or any industry body for that matter, to take responsibility for ditching safety guidance based on the say so of the government was always fanciful in the first place. Will the housing minister protect them, and the other people in the chain, from any legal action if a fatal fire takes place and or these properties become unmortgageable in the future due to fire risk?
“The government have the power of primary legislation to make the changes required, they should get on with it instead of making pointless six-monthly PR announcements of the end of the cladding crisis.”