DontCareBear Posted February 19, 2013 Share Posted February 19, 2013 My wife has been with HSBC for 15 years and went for a review meeting today and they said if she wanted a mortgage they'd be able to offer somewhere between x6 and x7 her salary! My jaw dropped! I had no idea such irresponsible lending was still going on. Quote Link to comment Share on other sites More sharing options...
Biggus Posted February 19, 2013 Share Posted February 19, 2013 It's obvious that a mortgage x10 of one's net income will bankrupt you when interest rates hit 10% interest. With gross income things are even worse. Quote Link to comment Share on other sites More sharing options...
Unexpected Posted February 19, 2013 Share Posted February 19, 2013 HSBC know that rates will stay low. They've changed their tune though as a year or so back they'd only offer me 4x. Quote Link to comment Share on other sites More sharing options...
motch Posted February 19, 2013 Share Posted February 19, 2013 For a split second - when i first read the title I thought HSBC were offering Mazda RX7 twin turbo Rotary's Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted February 19, 2013 Share Posted February 19, 2013 For a split second - when i first read the title I thought HSBC were offering Mazda RX7 twin turbo Rotary's Not BMW X7 pedestrian crushers? Quote Link to comment Share on other sites More sharing options...
awaytogo Posted February 19, 2013 Share Posted February 19, 2013 (edited) My wife has been with HSBC for 15 years and went for a review meeting today and they said if she wanted a mortgage they'd be able to offer somewhere between x6 and x7 her salary! My jaw dropped! I had no idea such irresponsible lending was still going on. Does that depend on what percentage deposit see has? Edited February 19, 2013 by awaytogo Quote Link to comment Share on other sites More sharing options...
monks Posted February 19, 2013 Share Posted February 19, 2013 My wife has been with HSBC for 15 years and went for a review meeting today and they said if she wanted a mortgage they'd be able to offer somewhere between x6 and x7 her salary! My jaw dropped! I had no idea such irresponsible lending was still going on. Not my recent experience with HSBC at all (and I have an excellent credit record and have been with them for 20 years+). They were willing to lend about 4-5 times my salary, but my wifes recent change to self employment counted against us as she is a "dependent" as well as the kids. Brought the offer down significantly. Quote Link to comment Share on other sites More sharing options...
richc Posted February 19, 2013 Share Posted February 19, 2013 (edited) If your wife is on £1m per annum and have £500k+ left over after tax than £3million mortage won't be excessive. On a 25 years repayment, The annual servicing cost at 3% is only around £175k which is clearly affordable. At 5%, that is around £213k Even at 8% (which will never be obviously), it is only £282k per annum. For the ordinary folks who have to spend a good chunk of income on food, fuel, childcare then obviously 6x is irresponsible lending. My partner and I were offered a 7x mortgage last week (with a 15% deposit), so I guess that's the new standard. I don't really disagree with your math, but, for most people on £1 million a year, it's a very greasy pole. You can easily be out of a job and "consulting" in a matter of no time. The number of people in a secure £1 million plus job is infinitely small. Edited February 19, 2013 by taxed_crusader Quote Link to comment Share on other sites More sharing options...
motch Posted February 19, 2013 Share Posted February 19, 2013 Not BMW X7 pedestrian crushers? i'll give it a go if i ever get one - cool Quote Link to comment Share on other sites More sharing options...
Unexpected Posted February 19, 2013 Share Posted February 19, 2013 Not BMW X7 pedestrian crushers? Naaaaaa!!! Suzuki x7 Quote Link to comment Share on other sites More sharing options...
pyracantha Posted February 19, 2013 Share Posted February 19, 2013 Not BMW X7 pedestrian crushers? I had no idea there was one on the horizon till your post got me googling: http://www.bimmerboost.com/content.php?3179-BimmerBoost-spots-the-2014-BMW-X7-testing Subtle undercover paint job... And then I saw this: http://www.autocar.co.uk/car-news/concept-cars/bmw-x7-project-dies So maybe not coming after all. Quote Link to comment Share on other sites More sharing options...
Goat Posted February 19, 2013 Share Posted February 19, 2013 My wife has been with HSBC for 15 years and went for a review meeting today and they said if she wanted a mortgage they'd be able to offer somewhere between x6 and x7 her salary! My jaw dropped! I had no idea such irresponsible lending was still going on. I know of one early thirties couple who've been offered 5x joint income. Give it a couple of years and he'll pay paying for a house on 10x single income. F***ing madness. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted February 20, 2013 Share Posted February 20, 2013 To be fair they need the business- now that laundering drug money is off the table. HSBC: The drug world's local bankSeparately, in a deferred prosecution agreement with the US department of justice, HSBC admitted to breaches of anti-money-laundering norms as it moved "hundreds of millions" through the US on behalf of Mexican and Colombian drug cartels. "HSBC's blatant failure to implement proper anti-money laundering controls facilitated the laundering of at least $881m in drug proceeds through the US financial system," the US attorney for the eastern district of New York, Loretta Lynch, said. http://www.independent.co.uk/news/business/analysis-and-features/hsbc-the-drug-worlds-local-bank-8406737.html Quote Link to comment Share on other sites More sharing options...
sf-02 Posted February 20, 2013 Share Posted February 20, 2013 Take it and if all goes to shite go onto SMI. Isn't that what everyone does? Quote Link to comment Share on other sites More sharing options...
AvoidDebt Posted February 20, 2013 Share Posted February 20, 2013 There's people out there that will start kissing the bank manager on both cheeks when he informs them that they have 'qualified' for a X7. For some people it's an achievement no less than scoring in the cup final. Face it lads and girls we must be an absolute minority. Otherwise despite the foreign funny money into London the near zero homegrown transaction levels should have killed off the market... Quote Link to comment Share on other sites More sharing options...
Quicken Posted February 20, 2013 Share Posted February 20, 2013 Sounds like a big fat return to normal signal in the great SE housing bubble. I await the next phase... Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted February 20, 2013 Share Posted February 20, 2013 The small amount of money I have left in the HSBC is coming out at the weekend on this news. This is disgusting behaviour from the bank and amounts to trying to get people to sign up to usury. Quote Link to comment Share on other sites More sharing options...
PopGun Posted February 20, 2013 Share Posted February 20, 2013 Triple dip recession Austerity hysteria Stunted incomes Ever increasing Inflation, energy, insurance costs alongside ever decreasing wealth And yet houseprices remain high, and now the insane lending returns. The state will do anything to protect its mortgage book. Time we all accepted that as far as house prices are concerned, we lost the war years ago. It's why most threads on HPC over the last few years have been infested with political and socioeconomic trolling (which we're all guilty of). Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted February 20, 2013 Share Posted February 20, 2013 Triple dip recession Austerity hysteria Stunted incomes Ever increasing Inflation, energy, insurance costs alongside ever decreasing wealth And yet houseprices remain high, and now the insane lending returns. The state will do anything to protect its mortgage book. Time we all accepted that as far as house prices are concerned, we lost the war years ago. It's why most threads on HPC over the last few years have been infested with political and socioeconomic trolling (which we're all guilty of). Their real fight is to maintain the maxed-out debt-based money system. Insane new property lending, student debt, the blatant money printing of QE, are all desperate injections into the otherwise deflating broad money supply. Crack-up boom? Quote Link to comment Share on other sites More sharing options...
65243 Posted February 20, 2013 Share Posted February 20, 2013 The small amount of money I have left in the HSBC is coming out at the weekend on this news. This is disgusting behaviour from the bank and amounts to trying to get people to sign up to usury. That'll teach them. Once people get wind of the fact that your £150 is coming out we could well be seeing queues of people demanding their money by early next week. Quote Link to comment Share on other sites More sharing options...
Sir Harold m Posted February 20, 2013 Share Posted February 20, 2013 (edited) There's people out there that will start kissing the bank manager on both cheeks when he informs them that they have 'qualified' for a X7. For some people it's an achievement no less than scoring in the cup final. Face it lads and girls we must be an absolute minority. Otherwise despite the foreign funny money into London the near zero homegrown transaction levels should have killed off the market... Or like all ponzi schemes it's the last act of those at the top bailing out and leaving someone else to hold the shitty stick . Watch carefully to see how many big players ( banks) use this next phase of credit expansion to offload their positions . Over the next few years it will be interesting to see where these loans end up. Could it be bank originates , then sells either whole loans or securitises and deleverages it's exposure to property . If you have a pension scheme just stear clear of any funds that take on property based loans at high yields . This is probably banks using fifo tactics to offload these latest round of shitty mortgages whilst slowly reducing the Ltv % of the loans they are keeping . Fls , zirp , Qe are all ways of printing money and savvy investors will use the scenario to buffer themselves for either the nominal crash or the inflationary default . Edited February 20, 2013 by Sir Harold m Quote Link to comment Share on other sites More sharing options...
PopGun Posted February 20, 2013 Share Posted February 20, 2013 Crack-up boom? Yep, here we go again. Potect yourselves!! Quote Link to comment Share on other sites More sharing options...
PopGun Posted February 20, 2013 Share Posted February 20, 2013 Or like all ponzi schemes it's the last act of those at the top bailing out and leaving someone else to hold the shitty stick . How many times have I read statements like this over the last 5+ years?! But then again a stopped clock has to be right twice in 24 hours. Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted February 20, 2013 Share Posted February 20, 2013 My wife has been with HSBC for 15 years and went for a review meeting today and they said if she wanted a mortgage they'd be able to offer somewhere between x6 and x7 her salary! My jaw dropped! I had no idea such irresponsible lending was still going on. Just tried their online calculator and it worked out at around 5x income for me. Quote Link to comment Share on other sites More sharing options...
DontCareBear Posted February 20, 2013 Author Share Posted February 20, 2013 Just tried their online calculator and it worked out at around 5x income for me. Yes I think this is for existing customers who have built up a history with the bank, but nonetheless still pretty mad figures! Quote Link to comment Share on other sites More sharing options...
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