Lenders 'clamp down on inflated incomes'

By Jonathan Dawes, Tue 16 Mar 2010 - Published in Mortgages

Loan providers are making it harder for people to inflate their income when applying for mortgages, according to an expert.

A recent poll by Callcredit found that nine per cent of adults have deliberately over-estimated their earnings when applying for credit, in the hope of receiving a higher limit.

Helen Adams, managing director of FirstRungnow.com, pointed out that mortgage providers have taken steps of late to prevent people from taking on more debt than they can afford to repay.

"As part of the mortgage advising process you have to verify peoples income so it is getting harder to inflate your income these days and get a higher loan in that way," she explained.

In addition, the Callcredit poll showed six per cent of people have applied for credit despite thinking they would have trouble meeting the repayments.

Ms Adams recommended that homeowners having trouble managing their debts contact their creditor and arrange a better way to pay them or a new schedule for spreading out their payments.

News Categories

News Archive

News: Lenders 'clamp down on inflated incomes'