Wednesday, Jul 11, 2007
I thought the cml said it was 3.37 x salary?
Firstrung: First time buyers - up to 290,000 plan on borrowing six times salary to climb onto the first rung
Alarming new research* from the online mortgage company mform.co.uk reveals that 2.08 million people aged 34 or under who plan to apply for a mortgage over the next three years intend to borrow over four times their salaries...
Posted by converted lurker @ 11:51 AM (149 views) Add Comment
3 Comments
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1. Scott said...
This does not mean they will get what they are applying for, especially with the way the tide is starting to turn.
In other words, the estate agents are still able to trick people into believing the houses they want are worth the prices, but if they cannot afford to fall for the trick then they won't and that is when we have a crash.
2. Algenon said...
... and I fail to see how an interest only mortgage gets one on the property ladder anyway!
3. Ihopeitgoeswithabang said...
They are not planning to they just know they would have to! I'd like to know how that question was asked!
Please find me a first time buyer who is even seriously thinking of doing that.
Why anyone would borrow 6x their salary with interest rates as they are i simply don't get?
There was I thinking the banks had a duty to make sure any lending was responsible?
Its cheaper to rent than pay the interest on that!? by a long way! with no risk & hassle.