Banks Continue To Self Preserve With Credit Tests

Banks Continue To Self Preserve With Credit Tests


New credit tests are going to be imposed by the main UK banks to assess the likelihood of a customer defaulting on payments. If a customer is seen as a high risk, they will then be forced onto an expensive variable rate deal which could leave them out of pocket by hundreds of pounds per month. 

 The tests will produce a forecast that will analyse how likely a customer is to fail to repay by looking at their monthly income and how many times they have re-mortgaged. This will be another blow for young first time buyers who may be on low salaries than according to these tests mean that they will have to move to a more expensive deal.

 The move by the banks is another sign of their trepidation in returning to normal in a post credit crunch market. Since the squeeze began Banks have been self-preserving themselves and these tests will ensure that they only do good deals with customers guaranteed to pay them back- a far cry from the days of sub prime lending.

 Lucy Trueick

Leave a comment