A leading bank has stunned mortgage applicants and brokers by asking customers how much they spend on narcotics as part of the process to take out a home loan.
The question appears in the application form as part of the affordability check designed to understand lifestyles, spending habits and how much money people have left from the pay cheque to cover mortgage repayments.
Broker Katy Eatenton, of Lifetime Wealth Management, said she discovered the bizarre question while filling out an application form with Metro Bank on behalf of a client.
She said that In the expenditure section, between the usual questions covering topics such as ‘Clothing and footwear’ and ‘Housekeeping’ was a question asking about the outlay on ‘Alcohol drinks, tobacco and narcotics’.
The Collins dictionary definition of “narcotics” reads as: “Narcotics are drugs such as opium or heroin which make you sleepy and stop you feeling pain. You can also use narcotics, especially in American English, to mean any kind of illegal drug.”
Mortgage brokers said the framing of the question, asking about spending in the context of drinking and smoking, led them to believe the bank was asking applicants about their spending on recreational drugs.
However – bizarrely – Metro defended the question by claiming it was asking about spending on prescription drugs rather than routine spending on getting high.
Katy Eatenton said: “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, Founder at Repossession Rescue Network, told 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.”
Director at Release Freedom, Simon Bridgland, wondered if executives at Metro Bank had not vetted the form properly before sending it out to customers and brokers.
“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?” he asked.
Ranald Mitchell, Director at Charwin Mortgages, said: “”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 asked: 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.’
“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.”
Justin Moy, Managing Director at EHF Mortgages, suggested the inclusion of the question about narcotics was probably a mistake. He said the application form may have been cut and pasted from ones circulated in America.
He said: “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?”
Asked to explain the wording, Metro Bank said there was no mistake, but rather a question of confusion about what they meant when asking about spending on narcotics.
A spokesperson said: “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.”
