Monday, Jul 28, 2008
A solvent professional struggles to get a mortgage from high street lenders
pw.com: Can we get a mortgage?
Just how hard is it to get on the housing ladder? As first time-buyer Justin Wood discovers, even a 10% deposit no longer guarantees a mortgage.
Posted by peter whelp @ 12:07 PM (694 views) Add Comment
9 Comments
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1. paul said...
Wow. Can mortgage approvals actually hit zero?
2. drewster said...
Excellent article, thanks for posting it Peter! It's nice to get an insiders view of what's really happening on the ground.
If all FTBs have to spend the next few years saving up for a deposit, it means falling transaction levels, falling house prices, and a slowdown in the consumer-facing sectors of the economy.
For now though, most people don't know how much harder it is to get a mortgage. Once the 'meme' of hard-to-get mortgages spreads throughout the population, people will focus on saving up for a deposit first.
3. maddison said...
Given this guys job description " associate director at Meghraj, a fund manager for private property investors" I wouldn't lend him a bean!
4. Hermitage said...
This person is looking to borrow £270,000. I just can't get my head around that! Monthly repayment of £2,000 per month? I'm not surprised he's finding it difficult to get a mortgage as, perhaps, realism might just be factored in now.
5. beartil2010 said...
Incredible graph, and an interesting article.
This sort of basic example of actual low-level experiences give the lie to all this 'recovery is near' BS we keep getting.
6. need-a-crash said...
"He believes this disadvantage was less obvious when lenders had a more positive outlook on the property market. Mortgage products were prolific and diverse, and 100% debt was available subject to minimal qualifying conditions"
Does he not understand that the BTL brigade were just as capable (and indeed did in large numbers) of taking advantage of 100% mortgages as FTB's, therefore the loss of these mortgages is GOOD NEWS for FTB's.
7. Iain Oneil said...
i always had the feeling that going to a brokr was adding an unneccessary person to the loop who wouild clearly want some kind of financial reward for taking part. Doesn't it always make snese to 'cut out the middle man' ?
8. mark wadsworth said...
Paul ,it won't just drop to zero, it will go negative.
9. Mda said...
So what the hell is stopping HP coming down at break neck speed?! We already have an idea of what is likely to happen from our cousins over the pond so surely some panic selling has got to set in soon?
Come on EA's hurry up and press the big red panic button!!!