Claus for concern: Would Santa get a mortgage in today's market?

Claus for concern: Would Santa get a mortgage in today's market?

Here at Property Reporter we like to tackle the big questions surrounding the housing market, and with Christmas drawing ever closer we thought we'd look at how everybody's favourite festive character would fare in the current mortgage market.

We all know Santa Claus as the hardworking, jolly old man who brings presents and joy to us all on 25th December - but with ho-ho-homeownership an aspiration for many of us, would he be able to get on the ladder as well as down the chimney?

Firstly, there's his age to take into consideration. Legends about an old man delivering gifts have been around for centuries in many cultures, so it's safe to say he's old enough to collect his free bus pass (although with his trusty reindeer and famous sleigh he might not need one!). IMLA recently published a report that claimed fears of a future clampdown by regulators are preventing mortgage lenders from offering loans that stretch into people’s retirement. Could this be a problem for Saint Nick? Despite this research from IMLA, Brightstar Financial recently noted that, while some lenders are reluctant to lend to older borrowers, there are still options available - so a nice two-sled semi at the North Pole might not necessarily be out of the question.

As with all mortgage applications in the wake of MMR, checking affordability is key to securing a suitable mortgage product. Allowing for grazing space for Rudolph and co, as well as space for his fabled workshop, our jolly housebuyer will need to borrow more than a few chocolate coins to secure his dream home. While we know he's gainfully - and permanently - employed, Mrs Claus isn't so lucky. With a single income and elves to support, lenders might be worried about how Father Christmas would cope with the imminent rate rises we're all anticipating.

And while we're on the topic of Santa's income, it's difficult to say how this would be calculated. As far as we know there aren't many accountants - or even banks - in the North Pole, meaning providing proof of income could be tricky. If he files his tax returns as a self-employed worker, he could be in luck, as Dudley Building Society recently urged the industry to address self employed lending gaps and to end discrimination against the borrowing needs of the self employed when it comes to home ownership. However, we're not entirely sure that sherry and mince pies count as adequate payment methods and certainly wouldn't cut it with any lenders in the post-MMR landscape.

It looks as though it might not be all chestnuts and open fires for our festive hero, as he falls into several categories of borrowers who are struggling with high prices, loan-to-income caps, and self-employment lending gaps in the current UK mortgage market. With mortgage rates set to rise and 91% having worries about selling up  due to high house prices, it looks as though Santa might remain in the North Pole for the foreseeable future. On the other hand, he could always try his luck with Hollyfax, Santa-nder, or Barsleighs...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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