@HenryPryor: leading question clearly BUT the answer for the vast majority is NO as they are discretionary sellers. Whether London machismo will abate and sellers will stop worrying about what their peers think is another matter, but as long as discretion rather than need is the imperative then no, it hasn't been factored in. As you well know my view is that it won't happen.....Mansion tax that is!
@SimonLambert: Hi Simon! I guess the real questions you are referring to are those around budget and where borrowers spend their money. The reality is that there should not be too many more questions that are asked with the main addition being "do you forsee any changes to your income in the future?". It is interesting to note a distinction between broker and direct where the budget questions are concerned. We have all seen the press reports of 3 hour plus meetings at bank branches with borrowers asked about spending on milk, coffees and even haircuts! For me this is down to the inexperience of direct branch staff and having to tick every box. Whenever a new set of regulations come out you often see a move to the most conservative side first before a general easing occurs. This type of intrusive questioning around variable spending is not what the regulator envisaged in my view and should not affect how much someone can borrow. cont...
@SimonLambert: cont... For a broker we have always gone through a detailed budget planner, focusing on the items that are not likely to or cannot be changed once a mortgage is taken out. We always get to know our clients and in the course of conversation understand there plans for the future which helps us to deliver best advice. An experienced broker does not need 3 hours to do this and we get much of the facts within our initial conversation and fact find. So our questioning is not just a simple tick box exercise as it is for branch staff and as such the meeting is more efficient, quicker and in my view more valuable without the need to ask unnecessary questions. We all know that peoples lifestyles change once they own their own home and our job is to make the borrower aware of this and understand the full costs and responsibilities of taking a mortgage.
@Marsha: A pet hate of mine this Marsha. I too live in a reprehensibly uncovered area (broadband AND mobile) BUT have sorted my problem with a satellite broadband system. This gives regular 5meg plus performance regardless of the time of day BUT is hopeless for gaming as there is a c. 0.8s latency in the ping time. My kids hate it as they are playing shoot 'em up games with someone from who knows where online and they keep getting shot - but I see putting them off gaming as a bonus. It's the only downside.
Thanks for some good questions this week and for making my typing fingers sore. See you next week.
Thanks again to those who took part.....
@HenryPryor: leading question clearly BUT the answer for the vast majority is NO as they are discretionary sellers. Whether London machismo will abate and sellers will stop worrying about what their peers think is another matter, but as long as discretion rather than need is the imperative then no, it hasn't been factored in. As you well know my view is that it won't happen.....Mansion tax that is!
@SimonLambert: Hi Simon! I guess the real questions you are referring to are those around budget and where borrowers spend their money. The reality is that there should not be too many more questions that are asked with the main addition being "do you forsee any changes to your income in the future?". It is interesting to note a distinction between broker and direct where the budget questions are concerned. We have all seen the press reports of 3 hour plus meetings at bank branches with borrowers asked about spending on milk, coffees and even haircuts! For me this is down to the inexperience of direct branch staff and having to tick every box. Whenever a new set of regulations come out you often see a move to the most conservative side first before a general easing occurs. This type of intrusive questioning around variable spending is not what the regulator envisaged in my view and should not affect how much someone can borrow. cont...
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