UTTER UTTER MADNESS

Utter madnes, I ask myself what are high street lenders thinking.

Mr & Mrs A from Exeter decided to sell there house, pay off all there debts and buy a new property. They have a good credit history, all of the debts were paid on time and they have no adverse credit. They have a 29% deposit for the new property and fit within lenders affordability ratio’s. So you would think lenders would be queing up to offer them a new mortgage.

But no, beleive it or not they have been declined or failed credit score by a number of high street lenders for no other reason other than there current income to debt ratio, although all debts are being repaid. I am lost for words to understand the logic behind this trend of thinking of many high street lenders, no wonder the housing and economic recovery is taking so long. In the previous article the comments were that mortgage lending has hit a 10 month high, clearly the figures are there to justify this. But surely this demonstrates lenders are cherry picking what they consider to be the very best applicants, leaving out many more people who have every right to expect a mortgage approval and are failing credit score through no fault of there own.

At the risk of blowing our own trumpet, I am happy to say we have acquired for Mr and Mrs A a very respectable two year fixed rate of 3.44%, with a lender who does not credit score, but judges each case on its merits. They will be moving to a new house of the same value and saving themselves at least £500 per month in payments. A great result for them, but a shocking example of how many high street lenders are flattering to deceive at the moment.

Peter

Posted on December 4, 2012 by Peter Marriott, in: Staff posts

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