Mortgage providers should not need details on how often you attend the gym or what your eating habits are on your application. These strict procedures and questions currently in place for mortgage applicants are something that only came into affect after the financial crisis began in 2008 and are quite unfair in my view.
Considering that this generation of "would be home owners" are now paying astronomical rental agreements because of mistakes made by greedy financial institutions in the early 2000's, should the Government and the Financial Conduct Authority be pushing for simple structures to be put in place or is that too transparent for the 'Fat Cats'?
Beat unemployment
The whole process of mortgage applications is not logical in an era where the British government want to cut employment and get people climbing the property ladder. Obtaining a mortgage and owning your own home should be simple providing that you have been with your employer for more than one calendar year without any disciplinary action and you have a deposit of at least 5% the value of the property you want to purchase. However, the bigger your deposit the better rate you will get on the loan obviously.
Simple yes?
If I was one of the statistical figures that do not want to work for a living after spending years on handouts from the DWP, we all know at least one, this would greatly appeal to me.
If these people where told "go and get yourself in to work, knuckle down, make a living wage and no matter what your credit history, no matter how many years you have spent on Benefit Street if you put the effort in and save some money you will get a chance to own a home," 99% would get up off their behinds and do it.
Granting a 3 strikes and your out system is an easy and practical way to actually give people a CHANCE at owning a home.
A first missed payment would be a yellow warning, "we all have unforeseeable situations".
A second missed payment would be an amber warning, "maybe we need a conversation".
A third missed payment would be a Red Letter, a compulsory meeting is required with the mortgage provider and repossession is activated. If a resolution is not found and a further problem or missed payment follows a final notice is issued and the property is taken back by the loan provider.
The Bank or mortgage provider NEVER loses out. They have the payments made so far, the value of the property-in most cases probably more than the loan-and the deposit paid initially.
