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picador

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About picador

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  1. Do you think I should take them up on their offer ;-)
  2. Then you'd be wrong in your assumption. Fallingknife expressed surprise when somebody said they had been offered a 5x mortgage so I added my story to illustrate that it was not a one off.
  3. Me too. A couple of weeks ago, Nationwide issued me with a decision in principle offering up to 5x joint salaries at up to 90% LTV!
  4. They've been trying to sell/rent that house for what seems like forever. I don't think it matters how many classic books they claim were inspired by the local landscape, the only feature of the local landscape you're going to notice from that place is the mighty engineering masterpiece that is the Great Western Railway Time to drop the price me thinks.
  5. This argument assumes that all properties in ladder two are excellent and all properties in ladder one are crappy. This is too simplistic. In reality there will be a sliding scale from crappy to excellent with many variations inbetween. So there will be substitutability. If I can't afford the detatched I want in my number one location of choice because the vendor is asking x% more than a detached house in a slightly less desirable neighbourhood, then I'm going to choose the later. Surely this will tend to drag down the price of the first overpriced house if people tend to give it a miss in favour of better value neighbourhoods.
  6. If you sue someone for personal injury following an accident, surely the insurance company covers your financial liability if you lose (or settle out or court). Hence the 'third party' part of TPF&T. If I'd read the whole thread Id have seen people already said this - d'oh!
  7. Personally, I don't agree. Since leaving University five years ago, my girlfriend and I have moved through four different rented properties in three different counties and each of us is now on our third job! The upside of this is that we're both doing jobs we really enjoy, have nearly tripled our joint income and live in a much nicer environment than was originally available to us when we first left university. If we'd bought a house in our first location back in 2005/2006 we'd have missed out on the promotion opportunities moving has given us. We have quite a few friends who bought houses at that time because of the "must get on the ladder, don't want to miss the boat" mentality. Most are now well and truly stuck. Some have split up but are forced to stay together. Some have lost jobs but are restricted by geography because of being tied to their house. I want to buy a house before I have children, but we're very glad we have rented while establishing ourselves in our careers.
  8. Wasn't the FSCS created by the Financial Services and Markets Act 2000? It required the FSA to create an independent body to fulfil its obligations to compensate savers.
  9. Indeed, there has been no agreement. However, just like a cartel fails because there is incentive for individual members to break rank, there is incentive for individual home owners to drop their price to get out first.
  10. Sounds like a cartel. The thing about cartels is that they are never particularly successful, because you have to get agreement between members and even then there's always incentive for members to cheat!
  11. OK, so they let you spend up to 90% of your disposable income on mortgage repayments? So, let's take two scenarios: Bob earns £1500 a month after tax and he spends £500 a month on essentials. He has £1000 left so he can "afford" repayments of £900. Fred earns £1500 a month after tax and he spends £1000 a month on essentials. He has £500 left so he can "afford" repayments of £450. Is that correct? So, if you spend less you can borrow more? Seems fine until interest rates rise and then Bob has proportionately more interest to pay and possible has less margin for cutting back.
  12. How is this "affordability" actually calcuated? Do they just look at your income minus essential bills and allow the whole of the remaining balance for mortgage payments? Or, is there a maximum percentage of income that is allowed to be allocated to mortgage payments?
  13. Indeed, my parents are often known to launch into a conversation along the lines of, "It was hard in our day too. We had to find £2k to buy our ex-Council flat from Maggie at below Market value, don't you know!" Anyway, I've noticed a curious thing recently. Of my peers who bought over the last couple of years, a transformation has been taking place. Instead of deriding my partner and I for renting, they're increasngly jealous of our flexibility and limited financial risk. Take one example of a couple I know. They bought a grotty ex-council two bed in a less than desirable area at peak on a 125% mortgage from Northern Crock! They've now split up and he's lost his job. I don't know how they're paying it and assume they must be getting some benefits. Obviously they want to sell, but they had it valued at £120k (they paid £138k). To be honest given what else is currently available in the area that still seems far too expensive. I was talking to them the other day and they cursed the day they bought the house and wished they'd rented instead. Personally, I love renting because the flexibility has been very good for my career. And, if my partner moans about redecorating, I tell her to buy some new curtains! I figure it's small change compared to the amount I could be losing on a house. She's never bothered.
  14. I tend to agree with the posters who say that the problem of whether one feels rich or not depends strongly on whether you bought a house before the bubble. At the height of my dear old Dad's career, he earnt about two thirds of the then national average wage. My Mum didn't work for the whole time I was growing up. From this he managed to buy a modest 3 bed semi in a reasonable area of a Southern seaside town. I didn't have a lavish upbringing by any means, but there was always food on the table and the occasional holiday every other year or so. Between my partner and I, we earn about 2.5 x the national average wage and have far better jobs than our parents. My Dad thinks we must be minted! He frequently drops comments about how the "other half live". But he was shocked when I told him that our rent and council tax came to more than he used to take home. And this is for a pleasant but unremarkable two bedroom flat in the South East. Now we manage to save a fair bit towards a house deposit and we certainly don't struggle, but there is a huge disconnect between our earning power and the sort of accomodation we can afford. My Dad could never afford to buy his own house now - he'd be lucky to be able to afford a studio flat!
  15. Yet more landlords who don't realise that renting out houses is a business arrangement and that people not paying are a risk of running the business. Plus, I see that the usual "I'm running a social service" argument has come out already. What a philanthropist!
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