This week’s first batch of comments comes from: Jargon busters: Mortgage industry needs ‘crackdown on gibberish’ ‒ analysis
Arron190 said: “The word ‘mortgage’ is jargon and some terms will always need explaining though calling joint borrower sole proprietor (JBSP) an ‘income booster’ is actually incorrect and misleading.
“JBSP can be used for a range of reasons, including reducing stamp duty land tax liability. However, now we are outside the EU, it would be good to get rid of the confusing European Standardised Information Sheet (ESIS) document and revert to the clearer KFI document.”
MJ added: “A good start would be to bring back the KFI; whilst not perfect it is still a 1,000 times better than the confusing ESIS document that clients don’t understand, particularly with all the extra irrelevant rubbish contained within it, let alone what ESIS stands for.”
Landlords should not be able to ‘access far greater mortgages than the rest of the market’
This week’s last comment is in response to: Landlords should be able to claim tax relief on losses ‒ Star Letter 27/10/2023
Very deceptive said: “I completely agree, the tax position is unfair. The government attempts to restrict landlords and perhaps penalise them for successfully winning too much of the market.
“However, landlords should never have had the ability to access far greater mortgages than the rest of the market. If the rental coverage was positive, often the lender could grant any buy-to-let mortgage amount without worrying about an income multiple.
“First-time borrowers and homemovers have not had access to this type of borrowing freedom in the last 15 years so have had no chance to compete.”
They added: “Slowly but surely, over the 15 years, landlords edged first-time buyers out of the market across the UK leaving prices much higher. The price inflation propelled property investors further to the detriment of any first-timer buying power.
“But even so, I don’t condone the battering that landlords are now receiving from tax, legal and EPC demands which forces a new equilibrium. Perhaps other commentators should have highlighted this earlier as the government has been cavalier to the impact on all sides.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
