Lender criteria was the focus of mortgage news in the financial press this weekend, with the Telegraph revealing that lenders are cracking down on borrowers who fail to notify them that they are renting out their properties. Many accidental landlords are trying to avoid being transferred to higher Buy-to-Let rates, so lenders are checking electoral roll registers, social media websites and online letting agencies. The Sunday Times looked at criteria regarding property type, highlighting areas where borrowers could trip up. These include the number of storeys in a building if purchasing a flat, as well as the requirements for a lift, proximity of property to a commercial space, and the remaining term on a lease. Mortgage brokers are particularly useful in terms of understanding lender criteria and guiding borrowers in the right direction depending on their property type. The Independent reported on affordability tests for divorced or single parents, after figures showed that child support was paid to over 1 million children in the UK last year. Critics say mortgage lenders are behind the times in their treatment of child support when assessing affordability, and many require evidence via a court order despite the Government pushing towards more informal arrangements. Experts have called for more lenient treatment of this type of income. Elsewhere the Mail on Sunday revealed that it is possible to secure a mortgage after the age of 65, but there are challenges involved, including proof of income and the maximum age a lender will lend to.
What the papers say – 2nd and 3rd November 2013