Gym Fees 'Could Stop Mortgage Approvals'

[Deepie]

Homebuyers could find themselves turned down for a mortgage because of their gym memberships, phone bills and pension payments, under new rules introduced this weekend, experts have warned.


Mortgage advisers said new restrictions introduced under the Mortgage Market Review (MMR) would drastically increase the intrusiveness of checks undergone by applicants.


The warning coincided with advice from economists, who claim the rules could dampen down activity in the housing market.

More---> http://news.sky.com/story/1248067/gym-fees-could-stop-mortgage-approvals

[SXGuy]

Re: Gym Fees 'Could Stop Mortgage Approvals'

I fear that lenders wont be clued up on how to apply these checks correctly though.

As an example, we have a client who went for a mortgage recently, and the advisor was insisting that his business taxi expenses, came off his net profit before they would assess his remaining income.

He tried repeatedly to explain that the expense of the cab is already deducted from his self employed turnover, and she just couldn't get it.

If these new checks are not explained correctly the lenders, then it could actually turn out to be more of a problem for self employed people than it appears to be now.