The rules for obtaining mortgage lending in the UK and more complicated every year

UK banks are afraid to issue mortgages for the purchase of residential property in England, Wales and Scotland to people, the repayment period which will be in their retirement age.

The regulator of the mortgage market in the UK – MMR introduced new rules, according to which the lender must provide the borrower an affordable, stable and transparent conditions on the size of the paid percent on the entire term of the mortgage loan. As a result, banks thought that people who have a repayment term captures the retirement age are in high risk zone.

The fact that the majority of the workers employed in the private sector of the UK moved to a system of payment of pension payments, which does not allow them to determine exactly what size of pension will be given to the employee when he retires. Banks see this kind of uncertainty, bigger risks , knowing that to calculate the exact amount of pension income is impossible, and the borrower may incorrectly evaluate its financial condition in the future. In such circumstances, to calculate what percentage of your retirement income will account for the payment of mortgage payments is almost impossible.

The high cost of housing in the United Kingdom has led to the fact that often people are willing to buy their own homes, reaching the age of 40 – 50 years. The standard term for the provision of mortgage lending – 25 years – this means that the repayment period may extend beyond retirement age of 65 years.

The requirement of the regulator to provide to the borrower the stability of the environment has led to the fact that banks simply began to impose age restrictions, to avoid the risk of being accused of breaking the rules. In this regard, the regulator appealed to the banks when considering the allocation of mortgage loan is not “too far” in the direction of conservatism, not its limitations where it is not motivated by questions of urgent need.

Guided by the purposes of consumer safety, banks may hurt yourself , significantly reducing the size of the allocated mortgage loans. You need to find the safest and healthy balance in the process of regulation of process of mortgage lending in the UK.

® Alice Morgan 18.03.2015

 LEAVE APPLICATION FOR SELECTION OF REAL ESTATE

In the UK, reduced Stamp duty

Why buyers from Russia should not fear sanctions

More than 325 % over two years has earned our clients

Immigration to the UK

IMPORTANT! A NOTIFICATION ABOUT THE SECOND CITIZENSHIP