Metro Bank has added the inquiry about narcotics to an application form’s affordability check in a bid to understand its customers’ lifestyles and spending habits
Mortgage hopefuls have been left puzzled after it emerged that Metro Bank is quizzing applicants about their spending on narcotics as part of an affordability assessment attached to its home loan application process.
The high-street bank has included the question in a section aimed at getting a grip on potential borrowers’ lifestyle costs, outgoings, and financial leeway for covering mortgage repayments post-bills.
This unexpected level of scrutiny has raised more than a few eyebrows, yet Metro Bank has stood by its line of questioning, clarifying it meant expenditure on prescription drugs not illicit substances.
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Broker Katy Eatenton from Lifetime Wealth Management came across the bizarre line of inquiry while navigating through the bank’s application form on a client’s behalf. Tucked between usual probes into ‘clothing and footwear’ and ‘housekeeping’ costs was a question on how much candidates splash out on ‘alcohol drinks, tobacco and narcotics’.
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Now that’s an eye-opener. Turning to Collins dictionary for clarity, we find that “narcotics” generally denote drugs like opium or heroin which suppress activity and relieve pain, reports the Daily Star.
It points out, on top of this, the word can encompass any illegal substance, especially within use across the pond. Despite the bank’s explanation, mortgage advisors seem to think the question is prying into personal life choices far beyond the norm.
Katy Eatenton was left stunned, remarking: “I couldn’t believe my eyes when completing a Metro application recently: alcohol, tobacco and narcotics had its own line item on their budget planner. Spending £200 a month on real ale is not the same as £200 a month on crack cocaine. I’m all for inclusivity, but is this really the route we should be going down? It leaves prospective borrowers in a very awkward position as to how to respond.”
Patricia McGirr, head of Repossession Rescue Network, shared with Newspage: “It’s a whole new world when your Friday night pint gets lumped in with meth on your mortgage application. You might enjoy a fine pint of Guinness at the local but does ticking the same box as a cartel kingpin suggest lenders think your regular tipple is an inevitable descent into a very different type of black gold.”
Simon Bridgland from Release Freedom raised concerns about the bank’s review process, asking: “The use of the word narcotics conjures up all sorts of images. Does this mean lenders actually think borrowers are now going to start fessing up to ‘recreational drug use’ on an application? If they did, would this simply kick out an application? “.
Ranald Mitchell, Director at Charwin Mortgages, humorously commented: “Ah, just what UK mortgage affordability forms were missing-narcotics! Because, of course, when you’re applying for a mortgage, the first thing lenders need to know is how much you’re spending on your weekend ‘trips’. Never mind income or credit, let’s make sure we track every last penny you might spend on that ‘high’ life.”
He further mused: “What’s next? A line-by-line breakdown of how much you blow on the nose candy vs. the wacky baccy? It’s as if the banks are saying, ‘Forget financial responsibility! We just want to make sure you’re not getting *too* addicted to the dream of homeownership’.”
Mitchell then added sarcastically: “Maybe they’ll start offering fixed-rate mortgages with a side of detox advice. One small step for lenders, one giant leap for a society where your substance of choice affects your interest rate. Honestly, this new level of scrutiny? It’s really hitting rock bottom.”
On the other hand, Justin Moy, Managing Director at EHF Mortgages, hinted that the unusual query on drug expenses in mortgage applications likely stemmed from an error. He surmised that the offending section might have been inadvertently copied across from American documentation.
He remarked: “I suspect this has slipped through the Document Proofing Department, as Metro has cut several positions recently so this must have been one of those key roles. Lifted from an American budget planner, this says as much about plagiarism as societal change. Is there space for Sky Betting on the budget planner? “.
In response to queries about the wording, Metro Bank insisted there was no mistake. A spokesperson clarified: “The category refers only to repeat prescription costs and other recurring medical expenses. We always take the time to explain this to brokers to make sure there are no misunderstandings.”
