What the papers say –15th and 16th November 2014
The Financial Times reported this weekend that the proportion of borrowers using brokers grew to 62% in the 3 months leading up to September, an increase from 58% in the previous quarter, and is expected to keep growing. With the introduction of tougher lending guidelines this year, borrowers have been keen to use mortgage brokers to help find them the best deal and guide them through the stricter application process, while banks and building societies have also turned to intermediaries as they offer lower distribution costs.
One example of the tougher lending criteria now in place is that regarding age. The Sunday Times revealed that parents are finding it increasingly difficult to help their children get onto the property ladder, due to tighter age restrictions. Brokers suggested that it is wrong to restrict customers, or even decline them outright, for this reason alone, and particularly given that pension income can be more stable than employed income.
Elsewhere, the Sunday Telegraph looked at the increasing number of reports suggesting that lenders are not using the FCA’s transitional rules to help borrowers looking to port their existing mortgage or even reduce their debt by downsizing. These rules mean that lenders are not required to impose the tougher guidelines introduced in April if a homeowner does not require further borrowing.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE