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Abbey to include birthdays and Christmas in affordability checks

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Abbey for Intermediaries will now require customers to account for one-off costs such as Christmas in their expenditure assessments.

The lender has changed its expenditure assessment to require all customers to fill out regular and non-regular monthly costs.

Examples given of regular expenditure include utilities, council tax and clothing, while non-regular expenditure covers religious festivals, birthdays, holidays and miscellaneous goods and services.

Abbey says that realistic information must be entered into these boxes and that entering zeros in these fields will lead to a decline decision.

Previously, Abbey would use Office for National Statistics data to obtain an average expenditure for a customer.

The new policy is also in place for Santander’s direct brand.

Abbey is also requiring brokers to submit more information up front, including details of private sales and deposits, which it says will allow it to process cases faster by reducing the number of cases it pends for outstanding information.

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Readers' comments (54)

  • Is it April 1st?

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  • One Word only....Unbelieveable, had to check the calender to make sure it wasn't April 1st!!!

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  • I trust they will be paying increased proc fees to cover the extra front end work!

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  • Should I also include what colour of Pyjamas they wear?

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  • well i've seen it all now! perhaps Santander would like to move a representative into our homes for 3 months prior to any mortgage application so they can carefully monitor all expenditure? I'm not quite sure why Santander have decided they don;t want any business this year, so far dreadful rates, changes to interest only policy and now this, should, firmly ensure that brokers and clients take any mortgage business elsewhere. Don't get me wrong many calculators have been seriously lacking in years gone by, but are we really suggesting that our clients are not intelligent enough to budget themselves for such occasions, are there many reported instances where people ring the lender and advise they cannot make the mortgage payment that month as they have booked an 'all inclusive to tenerife!' ??????

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  • They've finally lost it and gone totally tonto. Next they'll have underwriters in disguise following you around to see where you do your shopping.

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  • what if i'm planning on taking my wife on a surprise birthday meal. do i have to let the Abbey know? will they want to see the menu? can we have desert?

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  • Humbug! Will they be asking if you give your grandchild a fiver when they visit or if you contribute a quid to the Big Issue occasionally??

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  • Shoe size and inside leg next on the forms? or do they want to know when you plan to die as well?

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  • "Abbey is also requiring brokers to submit more information up front, including details of private sales and deposits, which it says will allow it to process cases faster by reducing the number of cases it pends for outstanding information."

    Well...I certainly think that it will speed processing times. Cut the number of cases submitted by half due to being outside affordability and it is bound to reduce processing time. Methinks the Ministry for Stating the Bleeding Obvious are at work again!

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