Have the banks learned their lesson?
February 15, 2011 2 Comments
We are currently in the process of trying to sell our house and move a little further into the countryside to a place with 2 acres of land. I always said i wouldn’t shed a tear if a few estate agents went under. Imagine my surprise when the local branch of a national estate agent who are trying to sell our place phoned up and said they had been told they will be closing this Friday. A bit of a pain, but estate agents are much of a muchness in my book.
What is interesting is the attempts to get a mortgage. We dispenses with the mortgage advisor who wanted to charge £400 for recommending deals worse than you could find by taking 5 minutes to read the Sunday papers and instead went to the bank where I have had an account since secondary school, and where my business account now resides.
The last time I got a mortgage it seemed to be a relatively simple procedure. Show me what you earn, show me what you spend and then have some money. Since the banks essentially acted with haste lending too much to people who could ill afford the repayments things are different. We have a house with no mortgage that we intend to sell to pay for building work. We have enough cash to put a sizeable deposit on what we want to buy, and want to fix in for five years at an amount that my wife alone could easily afford. Yet we have to go through a rather onerous process of showing earnings over the past few years, expenditure, proof of savings, and indicate provide in depth details about the property we want to buy.
My only question is, why wasn’t this always the case?