Mortgage Affordability Test

[beardosh]

Just been speaking with Barclays about a remortgage and they have informed me that I fail the FSA affordability test by £26 a month therefore they cannot go any further with a remortgage application. This is even though the new monthly rate would be £350 a month cheaper than what I am comfortably paying now. He stated that this Affordability Test was set by the FSA and not barclays (Woolwich) and therefore it would be the same result whatever lender I went to. Does anyone know if this is the case and any advise? To cap it all, he said had I applied 9 weeks earlier which was before the birth of our child, we would have passed the test!

 

[Westdene Seagull]

Just been speaking with Barclays about a remortgage and they have informed me that I fail the FSA affordability test by £26 a month therefore they cannot go any further with a remortgage application. This is even though the new monthly rate would be £350 a month cheaper than what I am comfortably paying now. He stated that this Affordability Test was set by the FSA and not barclays (Woolwich) and therefore it would be the same result whatever lender I went to. Does anyone know if this is the case and any advise? To cap it all, he said had I applied 9 weeks earlier which was before the birth of our child, we would have passed the test!

While I'm not an expert I would say this is crap. The FSA don't tell the banks how they determine who to lend to for mortgages as far as I'm aware. Yes, they could say 110% mortgages are a no no but standard lending I'm not sure they can say what the "affordability rules" are !

 

[beorhthelm]

i dont believe it. I recently went to my bank and they went though some number as you expect but it was the same process (literally, the same web pages iirc) as i did 2 and 5 years ago. probably at best guidelines that Barclays use as an excuse. Uncle S will be along in a minute to explain all.

i'd find another lender, at least to see if theres a test or not.

 

[beardosh]

I cant believe it myself also - only went to Barclays as we bank with them and they stated they didn't need any proof of income. Think I recall when I first had to get a mortgage 6 years ago Barclays were pretty turd then. The test just doesn't make sense as the mortgage rate on offer was 3.99% but the test is based on rates being 5.5%? Also it doesn't take into account the child benefit payments but does regards the child as a cost? A bit of double standards there!

 

[seagullwedgee]

go through a broker, they know how lender's affordability tests differ. there are no hard rules from FSA.

 

[n1 gull]

Just been speaking with Barclays about a remortgage and they have informed me that I fail the FSA affordability test by £26 a month therefore they cannot go any further with a remortgage application. This is even though the new monthly rate would be £350 a month cheaper than what I am comfortably paying now. He stated that this Affordability Test was set by the FSA and not barclays (Woolwich) and therefore it would be the same result whatever lender I went to. Does anyone know if this is the case and any advise? To cap it all, he said had I applied 9 weeks earlier which was before the birth of our child, we would have passed the test!

This is crap. Go to a mortgage broker and you'll get a better rate. Uncle Spielberg can give you more details and I've recently re-mortgaged using a broker I use who's really helpful. If US can't assist feel free to PM and I'll pass you his details. I can't promise he can help, but he sorted me out with a good result.

 

[Gwylan]

This is a thread that's crying out for US

 

[Uncle Spielberg]

PM me !.

 

[The Modfather]

Just been speaking with Barclays about a remortgage and they have informed me that I fail the FSA affordability test by £26 a month therefore they cannot go any further with a remortgage application. This is even though the new monthly rate would be £350 a month cheaper than what I am comfortably paying now. He stated that this Affordability Test was set by the FSA and not barclays (Woolwich) and therefore it would be the same result whatever lender I went to. Does anyone know if this is the case and any advise? To cap it all, he said had I applied 9 weeks earlier which was before the birth of our child, we would have passed the test!

This is incorrect, their is no FSA affordability test.

Each lender has their own policies on affordability, loan to valuation, percentage of income the repayments are, etc.

Self certified mortgages are pretty much no existent though.

 

[Uncle Spielberg]

Just been speaking with Barclays about a remortgage and they have informed me that I fail the FSA affordability test by £26 a month therefore they cannot go any further with a remortgage application. This is even though the new monthly rate would be £350 a month cheaper than what I am comfortably paying now. He stated that this Affordability Test was set by the FSA and not barclays (Woolwich) and therefore it would be the same result whatever lender I went to. Does anyone know if this is the case and any advise? To cap it all, he said had I applied 9 weeks earlier which was before the birth of our child, we would have passed the test!

They are talking cobblers. Most lenders are now lending based on their own affordability models rather than the income multiple way but there is no standard fsa ruling. PM me and I can e mail the best rates I can get.

 

[Simster]

Just been speaking with Barclays about a remortgage and they have informed me that I fail the FSA affordability test by £26 a month therefore they cannot go any further with a remortgage application. This is even though the new monthly rate would be £350 a month cheaper than what I am comfortably paying now. He stated that this Affordability Test was set by the FSA and not barclays (Woolwich) and therefore it would be the same result whatever lender I went to. Does anyone know if this is the case and any advise? To cap it all, he said had I applied 9 weeks earlier which was before the birth of our child, we would have passed the test!

Oddly enough, Barlcays/the Woolwich told me the very same thing when I was looking to remortgage.

Funny then, that 4 months later my current lender (Northern Rock) have let me renegotiate our mortgage to interest only, now that our 5 year fixed term has expired...