The difficulties experienced by borrowers since the introduction of tougher lending rules earlier this year continues to be highlighted by the financial press. The Telegraph revealed that, while some lenders have eased their criteria regarding self employed applicants, borrowers are still being rejected due to lack of records. Brokers pointed out that businesses are often set up to be tax efficient but this can make it harder to prove income.
The Sunday Times looked at the benefits of using a broker to guide borrowers through the maze of complex criteria. This can be particularly useful for those in a more unusual position, and again the self-employed were cited as being susceptible.
There was continued coverage of lenders’ failure to apply the transitional provisions put into place by the Financial Conduct Authority, with brokers in the Financial Times claiming that lenders are using the more challenging affordability criteria required under the new guidelines, despite the fact that this is not required for existing customers who are porting, but not increasing, their mortgage.
Elsewhere, the Independent on Sunday revealed that British retirees are expected to unlock £136.5bn over the next 5 years by downsizing their property, but experts warned that buying and selling is likely to take a slice from the available equity which could significantly reduce the size f the retirement fund.