Price lag on new build calls value into question – LCP
I’m surprised to see that new builds have lagged – with government and 5% deposit schemes available they’re a really attractive first home offer.
I know for a fact that I wouldn’t be in my new build without the 5% deposit scheme!
Laura
FCA in talks with lenders over strict affordability assessments
We have also seen the return of pensions being considered “commitments”. Prudent customers planning for their retirement and not from the “let’s live for today ilk” are being indirectly encouraged to be cancel their pensions in order to get their mortgage.
Lenders say the payment could make the mortgage unaffordable if rates rise to 6.74% but then the borrower would make the simple decision of stopping pension payments or maintaining the roof over their heads until their incomes rose or the rates dropped.
Yes a 6.74% stress test is sensible for true commitments but not for voluntary payments. I also had a case of a client on £130,000 pa and the lender requires he has a disposable income of over £2,000 per month – more than the average wage earner in the UK earns net of tax and before their bills.
He was doing a £ for £ remortgage with no debt problems, so evidence he lives off a lower disposable income. Most lenders need to revisit their criteria and perhaps gather some brokers together to ensure their criteria is more realistic. The FCA is right to be concerned that unintended consequences have stemmed from isolated compliance departments not being able to see reality.
Arron – Temple Capital
Simplybiz and Sesame lock horns over adviser numbers
So, one of them is lying. There is only one way to find out. FIGHT!!!!!
Good Mortgage Man
FCA in talks with lenders over strict affordability assessments
Insidious/granular – has a dictionary been swallowed? Perhaps more time spent in thinking about the real MMR issues rather than proof of a private school education would be in order!?!
MJR
