A million to miss out on a mortgage in new lending crackdown
Up to a million borrowers could be turned down for mortgages under a tough new crackdown on lending announced by the UK’s financial watchdog today.
The Financial Services Authority’s wide-ranging shake-up will call for tougher restrictions on how home loans are approved to prevent a return to irresponsible lending.
Under the proposals, anyone seeking a mortgage will be required to provide much fuller evidence of basic household spending – from fuel bills to childcare costs and clothing – before their loans are signed off.
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But the watchdog’s own impact assessment has revealed that the plans could hamper growth by stripping £2.9billion out of the economy and lead to a dramatic drop in mortgage applications.
Read more: http://www.dailymail.co.uk/news/article-2075897/FSA-mortgage-review-A-million-miss-new-lending-crackdown.html#ixzz1h02um2V8
I do not understand the last paragraph at all nor the cross reference to it in that Q & A block. Anyone care to enlighten me ?
It will completely screw the self employed unless they've been honest on their filed sole trader or partneship tax returns. Still - they can't have it both ways.
