Mortgage decisions can be based on occupation
September 19, 2009
It has been revealed in a recent report that many mortgage lenders have been basing their decision on whether to grant mortgages to applicants on the occupation of the applicant.
Lender have been assessing how high risk applicants might be by looking more closely at their occupations, and people in some certain occupations have found themselves in a very difficult situation where it is difficult or even impossible to get an affordable mortgage.
The data in the report suggests that those that are what have become classed as higher risk occupations have suffered during the mortgage drought, as lenders have not been prepared to take a risk on them.
The report stated that there was a blanket ban on applications from people in certain professions, and many were being routinely turned down purely on the basis of their profession by some lenders.
Amongst the professionals that are being penalised because of their occupations are those working in the property sector and the finance sector.
One industry expert said: “The biggest hit has been for workers in the property industry. Next are investment bankers, although it depends which bank.”
Another stated: “There has been an almost blanket ban on developers, closely followed by investment bankers. Lenders are not yet showing signs of adjusting to improvements in the market.”
One industry professional added: “There has been an almost blanket ban on developers, closely followed by investment bankers. Lenders are not yet showing signs of adjusting to improvements in the market.”
This comes at a time when there has been increased interest in the mortgage and property market as a result of the rock bottom base rate and lower property prices. However, certain groups such as first time buyers and those in these higher risk professions are still experiencing huge problems when it comes to getting a mortgage loan.
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I want to give a piece of advice-while taking mortage don’t forget about your own file of documents and make sure it has – proof of ownership, letters of reference, contracts, tax returns, financial statements, credit references!!