Abbey calls in pocket money police

CUSTOMERS applying for a mortgage are being asked for minute details of their spending habits, down to hairdressing bills and their children's pocket money.

The 'budget planner' the Abbey bank insists customers must fill in also includes the cost of birthday and Christmas presents, school dinners and pets.

Mortgage brokers say the questions could be seen as intrusive and insulting. But the bank insists they are part of its commitment to lend responsibility.

Spokesman Jeff Scott said: 'You almost have to shock people, because otherwise they won't necessarily understand what their commitments are.'

The questions are only asked to customers who apply for a mortgage direct with the bank and not those whom go through a broker, suggesting nervousness at meeting the Financial Services Authority's stringent new rules on mortgage sales.

The rules were introduced at the beginning of November giving consumers greater protection against mis-selling and requiring lenders to provide borrowers with clearer information on products.

Ray Boulger, senior technical manager at broker Charcol, said: 'It is a quite extrodinary level of detail being asked and I'm not sure whether it will be wholly accurate anyway. People tend not to know how much they spend on food a week so will usually underestimate.'

Boulger believed the level of questioning was a one-off and wouldn't be repeated by other lenders.