SaintJay Posted April 15, 2009 Share Posted April 15, 2009 I'm off for a mortgage chat at HSBC tomorrow. Just a general 'what will you lend me, what will it cost' kind of chat to see what they've got and what it's going to cost me for when I do want to buy somewhere. I'll let you know what they have to say for themselves. it got postponed but finally went to see them today. To qualify for a decent mortgage you need a 25% deposit. If I make my deposit 25% of the purchase price - I can get 4.99% fix for 5 years. However, the purchase price I can afford then comes down dramatically. I would then be looking at tiny boxes way outside of town. The sort I am actually after are about another 40k up in price (at the moment, though falling) if I were to use my deposit at this price range, I would fall below the 25% threshold and they would not lend to me on those figures with my current salary. My deposit would need to increase by that 40k in price difference. In essence, the bank are implying they still think prices are going to fall a lot further due to the increased deposit required to get not just the best deals but the sensible deals. He would not be drawn on whether valuations were coming back lower than agreed sale prices and whether this was affecting current purchases. I shall be back with further questions for the guy - if any of you have any then stick them below. I'm off see what I can sell to raise some cash. Kidney anyone? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 15, 2009 Share Posted April 15, 2009 it got postponed but finally went to see them today. To qualify for a decent mortgage you need a 25% deposit. If I make my deposit 25% of the purchase price - I can get 4.99% fix for 5 years. However, the purchase price I can afford then comes down dramatically. I would then be looking at tiny boxes way outside of town. The sort I am actually after are about another 40k up in price (at the moment, though falling) if I were to use my deposit at this price range, I would fall below the 25% threshold and they would not lend to me on those figures with my current salary. My deposit would need to increase by that 40k in price difference. In essence, the bank are implying they still think prices are going to fall a lot further due to the increased deposit required to get not just the best deals but the sensible deals. He would not be drawn on whether valuations were coming back lower than agreed sale prices and whether this was affecting current purchases. I shall be back with further questions for the guy - if any of you have any then stick them below. I'm off see what I can sell to raise some cash. Kidney anyone? may I suggest a LIAR LOAN sir? Quote Link to comment Share on other sites More sharing options...
winkie Posted April 15, 2009 Share Posted April 15, 2009 2 year fix? You must be flucking joking. Yes, more like an ARM than a leg...or maybe both. Quote Link to comment Share on other sites More sharing options...
SaintJay Posted April 15, 2009 Share Posted April 15, 2009 may I suggest a LIAR LOAN sir? a what loan? I don't think I've heard of one of those. What are they? Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted April 15, 2009 Share Posted April 15, 2009 it got postponed but finally went to see them today. To qualify for a decent mortgage you need a 25% deposit. If I make my deposit 25% of the purchase price - I can get 4.99% fix for 5 years. However, the purchase price I can afford then comes down dramatically. I would then be looking at tiny boxes way outside of town. The sort I am actually after are about another 40k up in price (at the moment, though falling) if I were to use my deposit at this price range, I would fall below the 25% threshold and they would not lend to me on those figures with my current salary. My deposit would need to increase by that 40k in price difference. In essence, the bank are implying they still think prices are going to fall a lot further due to the increased deposit required to get not just the best deals but the sensible deals. He would not be drawn on whether valuations were coming back lower than agreed sale prices and whether this was affecting current purchases. I shall be back with further questions for the guy - if any of you have any then stick them below. I'm off see what I can sell to raise some cash. Kidney anyone? did you discuss the super hyped 2 year fix at 90% LTV? Quote Link to comment Share on other sites More sharing options...
Kazuya Posted April 15, 2009 Share Posted April 15, 2009 a what loan? I don't think I've heard of one of those. What are they? http://www.thisismoney.co.uk/mortgages/art...mp;in_page_id=8 In retospect, thats exactly what happened Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 15, 2009 Share Posted April 15, 2009 a what loan? I don't think I've heard of one of those. What are they? LIAR LOAN there... now do you see? Quote Link to comment Share on other sites More sharing options...
spivT Posted April 15, 2009 Share Posted April 15, 2009 LIAR LOAN there... now do you see? i think the americans call them... LIARS LOANS Quote Link to comment Share on other sites More sharing options...
Damik Posted April 15, 2009 Share Posted April 15, 2009 Average male in full-time employment earns approx 35k. The 75th percentile earn over 38,650. The 90th percentile earn over 56,000. Source 2008 ASHE. http://www.statistics.gov.uk/pdfdir/ashe1108.pdf Median male in full-time employment earns approx 27,166 pa. Quote Link to comment Share on other sites More sharing options...
Normal Posted April 15, 2009 Share Posted April 15, 2009 http://www.statistics.gov.uk/pdfdir/ashe1108.pdfMedian male in full-time employment earns approx 27,166 pa. You missed the party on that one, discussed to death, and it is stated at £27,500 in the raw stats. Quote Link to comment Share on other sites More sharing options...
SaintJay Posted April 15, 2009 Share Posted April 15, 2009 LIAR LOAN there... now do you see? Quote Link to comment Share on other sites More sharing options...
Acerman Posted May 7, 2009 Share Posted May 7, 2009 Never mind what they're expecting, I'm expecting massive inflation and interest rates to go through the roof. You take the chance that you come off that fixed rate in 2 years time and get one almighty kick to the nads. Considering BOE rates are 0.5%, they're still ripping the pish. A 10 year fix at 3-4%, that would be bringing something serious to the table. D I don't see why inflation and rates will go through the roof any time in the near future. This is a bad recession and inflation won't be an issue for quite some time i think. There is no reason why rates can't stay low for 3-5 years (by that i mean less than 5%). When they start raising the rates again it will be steadily so as not to create shocks in the market place. These are uncharted waters- rates have never been so low and for all we know it could be a decade of low interest rates. Quote Link to comment Share on other sites More sharing options...
drrayjo Posted May 7, 2009 Share Posted May 7, 2009 There is no reason why rates can't stay low for 3-5 years And there is no reason the bond markets can't ensure they won't. Place your bets. Quote Link to comment Share on other sites More sharing options...
messychopper Posted May 7, 2009 Share Posted May 7, 2009 Fast forward to 2018.......Rinoa posts "100% Mortgages offered at 1% fixed for 25 years" The replies read something like the following... "1% Fixed, the greedy bast£rds, why arent they offering 0.5%? I'm holding out until they do..." I am sure that this 90% offer will catch some fish, please remember that not all the potential buyers out there are as aware of the future as the members of this board... Credit is the problem and not the cure Quote Link to comment Share on other sites More sharing options...
Kazuya Posted May 7, 2009 Share Posted May 7, 2009 I don't see why inflation and rates will go through the roof any time in the near future. This is a bad recession and inflation won't be an issue for quite some time i think. There is no reason why rates can't stay low for 3-5 years (by that i mean less than 5%). When they start raising the rates again it will be steadily so as not to create shocks in the market place. These are uncharted waters- rates have never been so low and for all we know it could be a decade of low interest rates. With Billy Q.E Printy going out of control, Granny IMF is soon going to have to whip him into shape. Quote Link to comment Share on other sites More sharing options...
Lone_Twin Posted May 7, 2009 Share Posted May 7, 2009 I don't see why inflation and rates will go through the roof any time in the near future. This is a bad recession and inflation won't be an issue for quite some time i think. There is no reason why rates can't stay low for 3-5 years (by that i mean less than 5%). When they start raising the rates again it will be steadily so as not to create shocks in the market place. These are uncharted waters- rates have never been so low and for all we know it could be a decade of low interest rates. This is because you are framing your view in a singularly keynesian mindset. In a free market interest rates are determined by market participants not as a function of the central bank. Quote Link to comment Share on other sites More sharing options...
THE BALD MAN Posted May 7, 2009 Share Posted May 7, 2009 I don't see why inflation and rates will go through the roof any time in the near future. This is a bad recession and inflation won't be an issue for quite some time i think. There is no reason why rates can't stay low for 3-5 years (by that i mean less than 5%). When they start raising the rates again it will be steadily so as not to create shocks in the market place. These are uncharted waters- rates have never been so low and for all we know it could be a decade of low interest rates. Only if international investors continue to pump money into bonds as we print money. Quote Link to comment Share on other sites More sharing options...
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