Criteria tightens even further!
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In the last 2 months I have directed an employee of HSBC to HSBC to request a mortgage, however they refused to lend sufficient funds, despite being an employee and only wanting 4x income and with good credit score, no other credit commitments etc. I have also sent another client to HSBC who again declined to lend because the client had been overdrawn during the last 3 months! Not over their limit, just overdrawn. Fortunately, I have been able to place both with an alternative lender and arrange the mortgages.
More alarmingly, an application I submitted to one lender was declined after the valuation as the property was on the same street as a pub! The lender felt this might affect the potential re-sale value if they had to repossess. I argued as much as I could however they refused to change their position. I have since placed it with another lender who doesn’t have an issue at all.
Funding is in increasingly short supply as the wholesale money markets have dried up, so lenders are becoming more and more strict with their criteria – finding any excuse not to lend.