Want a mortgage? Don’t eat steak!
It emerged last night that mortgage applicants are being asked ‘Spanish inquisition’ style questions, including whether they play golf or eat steak.
Some interviews have lasted up to 3 hours where applicants have been quizzed over the price of haircuts, their plans for more children and even their hopes of a pay rise.
These questions are intended to protect both customers and prevent a return to the shady lending practices that precipitated the financial crisis under the Mortgage Market Review, which came into force on April 26th 2014.
According to the the Financial Conduct Authority (FCA) the Mortgage Market Review (MMR) will ‘put common sense at the heart of the mortgage market and prevent borrowers ending up with a mortgage they cannot afford’.
Some applicants have seen their mortgage offers halved under the new rules, with £100,000 reductions being reported. Furthermore, a report that will be published later on this week will show that remortgage applications fell by 12% last month.
- Have you been refused a mortgage under the new regime?
- Have you taken precautions against the MMR? If so, what are they?
- Do you think more chains will end up collapsing?
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