guilty as sin Posted May 28, 2009 Share Posted May 28, 2009 Just found out our daughters house move involves getting a maxed out mortgage to four and half times wages, she is only a school teacher and feel £160,000 mortgage will cripple her once interest rates rise, Whats your opinion? are we over concerned we had thought lax borrowing had ended. At least she has not been conned into a interest only mortgage. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted May 28, 2009 Share Posted May 28, 2009 4.5x asking for trouble. If wage cuts happen think what will happen to this multiple. Quote Link to comment Share on other sites More sharing options...
Timm Posted May 28, 2009 Share Posted May 28, 2009 What is her deposit? Where did it come from? Quote Link to comment Share on other sites More sharing options...
buytoilet Posted May 28, 2009 Share Posted May 28, 2009 Just found out our daughters house move involves getting a maxed out mortgage to four and half times wages, she is only a school teacher and feel £160,000 mortgage will cripple her once interest rates rise, Whats your opinion? are we over concerned we had thought lax borrowing had ended. At least she has not been conned into a interest only mortgage. Lots of lenders offering high multiples, woolich will do 5x Joint Why cant she wait another 6 months, 1year ? Quote Link to comment Share on other sites More sharing options...
Oh Give Me A Home Posted May 28, 2009 Share Posted May 28, 2009 Bloke I work with went to see Barclays at lunchtime - they have offered him 5x!!! Can't believe it - do these pillocks never learn? He's only 23 - going to be absolutely stuffed if rates go up, because it's a tracker he is looking at. Quote Link to comment Share on other sites More sharing options...
BLOW FLY Posted May 28, 2009 Share Posted May 28, 2009 Just found out our daughters house move involves getting a maxed out mortgage to four and half times wages, she is only a school teacher and feel £160,000 mortgage will cripple her once interest rates rise, Whats your opinion? are we over concerned we had thought lax borrowing had ended. At least she has not been conned into a interest only mortgage. When you say move do you mean from your house as a FTB, from another house in which she has equity or renting? What's the LTV on it? Are you putting money in? Is she the sole mortgagee or is she 'buying' with a spouse or partner? BF Quote Link to comment Share on other sites More sharing options...
kara gee Posted May 28, 2009 Share Posted May 28, 2009 The obvious HPC answer is to talk her down from it. It would be insane to buy a house at 4.5x single income at this point in time. With further falls ahead, she will be in neg equity before long. However. We don't know enough about her situation to give a more thorough opinion. Ie, Is she single, have kids, want kids, prepared to take lodgers, understand about further house price falls, negative equity. there are so many factors to consider, albeit most of them leading to the same conclusion - Not to do it! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 28, 2009 Share Posted May 28, 2009 I was offered 8 times. Quote Link to comment Share on other sites More sharing options...
three pint princess Posted May 28, 2009 Share Posted May 28, 2009 Might be worth checking to see if you can qualify for government mortage support so soon after buying a place. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted May 28, 2009 Share Posted May 28, 2009 Bloke I work with went to see Barclays at lunchtime - they have offered him 5x!!! Can't believe it - do these pillocks never learn? He's only 23 - going to be absolutely stuffed if rates go up, because it's a tracker he is looking at. They probably believe a 23 yo person would probably have large salary increases coming soon and that 5x salary would be eroded by wage inflation. Not saying that it is right, but it will probably be their justification. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 28, 2009 Share Posted May 28, 2009 They probably believe a 23 yo person would probably have large salary increases coming soon and that 5x salary would be eroded by wage inflation.Not saying that it is right, but it will probably be their justification. course the 10 minute lunchtime sales patter would offer up to 5 times....its when reality of the form filling comes and the underwriters scrutinise that the 5X becomes a rarity. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted May 28, 2009 Share Posted May 28, 2009 course the 10 minute lunchtime sales patter would offer up to 5 times....its when reality of the form filling comes and the underwriters scrutinise that the 5X becomes a rarity. well there is that as well. Quote Link to comment Share on other sites More sharing options...
Oh Give Me A Home Posted May 28, 2009 Share Posted May 28, 2009 course the 10 minute lunchtime sales patter would offer up to 5 times....its when reality of the form filling comes and the underwriters scrutinise that the 5X becomes a rarity. I really hope that's what happens - he seems to have fallen into the "prices are so low I must buy now" trap, so having the mortgage turned down could be his only hope of not getting into serious negative equity problems. Quote Link to comment Share on other sites More sharing options...
europbaron Posted May 28, 2009 Share Posted May 28, 2009 Bloke I work with went to see Barclays at lunchtime - they have offered him 5x!!! Can't believe it - do these pillocks never learn? He's only 23 - going to be absolutely stuffed if rates go up, because it's a tracker he is looking at. Anyone who sells a tracker mortgage with the BoE rate at 0.5% should immediately get their pay doubled. And be shot. Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted May 28, 2009 Share Posted May 28, 2009 They probably believe a 23 yo person would probably have large salary increases coming soon and that 5x salary would be eroded by wage inflation.Not saying that it is right, but it will probably be their justification. Wouldn't surprise me - this was the argument during the last couple of years of ramping. Needless to say, many of these silly sods have experienced nothing of the sort and are in fact looking at wage cuts. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted May 28, 2009 Share Posted May 28, 2009 (edited) She's very lucky to be given this wonderful chance to get on the property ladder now that things have really bottomed out and the green shoots of the recovereh have been replaced by mighty oaks of prosperity engines. Edited May 28, 2009 by DissipatedYouthIsValuable Quote Link to comment Share on other sites More sharing options...
SarahBell Posted May 28, 2009 Share Posted May 28, 2009 tell her to pop a few babies out. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 28, 2009 Share Posted May 28, 2009 She's very lucky to be given this wonderful chance to get on the property ladder now that things have really bottomed out and the green shoots of the recovereh have been replaced by mighty oaks of prosperity engines. she neednt worry about the LA running out of money and being unable to pay her either....mortgage Companies will accept vouchers Im told. Quote Link to comment Share on other sites More sharing options...
Cicero Posted May 28, 2009 Share Posted May 28, 2009 Just found out our daughters house move involves getting a maxed out mortgage to four and half times wages, she is only a school teacher and feel £160,000 mortgage will cripple her once interest rates rise, Whats your opinion? are we over concerned we had thought lax borrowing had ended. At least she has not been conned into a interest only mortgage. DON'T DO IT!! Quote Link to comment Share on other sites More sharing options...
guilty as sin Posted May 28, 2009 Author Share Posted May 28, 2009 to update on replies. she is single going alone at 29 moving from shared ownership keyworker flat to first fully owner a 2 bed terrace house total cost of house £198,000. We are throwing in nine grand to help with deposit she saved 2 grand the rest is equity. she is not prepared to wait and thinks we are out of touch and thinks its her last chance to get on the ladder as they are rising again. [area is addlestone newhaw byfleet areas] Quote Link to comment Share on other sites More sharing options...
Little Professor Posted May 28, 2009 Share Posted May 28, 2009 she is single going alone at 29 moving from shared ownership keyworker flat to first fully owner a 2 bed terrace house total cost of house £198,000. Quote Link to comment Share on other sites More sharing options...
BLOW FLY Posted May 28, 2009 Share Posted May 28, 2009 to update on replies.she is single going alone at 29 moving from shared ownership keyworker flat to first fully owner a 2 bed terrace house total cost of house £198,000. We are throwing in nine grand to help with deposit she saved 2 grand the rest is equity. she is not prepared to wait and thinks we are out of touch and thinks its her last chance to get on the ladder as they are rising again. [area is addlestone newhaw byfleet areas] Tell her to bog off and stop trying to be like the rest of the 'Surrey Set'...... No, seriously; Don't give her the £9,000...... She may hate you and not talk to you for a few months but...... It's your money and she'll thank you in 12mths time.....! That's my 2c but tbh it doesn't matter to me what you do either way..... BF Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 28, 2009 Share Posted May 28, 2009 to update on replies.she is single going alone at 29 moving from shared ownership keyworker flat to first fully owner a 2 bed terrace house total cost of house £198,000. We are throwing in nine grand to help with deposit she saved 2 grand the rest is equity. she is not prepared to wait and thinks we are out of touch and thinks its her last chance to get on the ladder as they are rising again. [area is addlestone newhaw byfleet areas] well, shes a teacher, cant expect a semblance of intelligence from a teacher. Quote Link to comment Share on other sites More sharing options...
swissy_fit Posted May 28, 2009 Share Posted May 28, 2009 to update on replies.she is single going alone at 29 moving from shared ownership keyworker flat to first fully owner a 2 bed terrace house total cost of house £198,000. We are throwing in nine grand to help with deposit she saved 2 grand the rest is equity. she is not prepared to wait and thinks we are out of touch and thinks its her last chance to get on the ladder as they are rising again. [area is addlestone newhaw byfleet areas] I feel for you, that's tough. Dismissed as an out-of-touch miserable old scroat, you are forced to watch your daughter screw up. I think you should refuse the 9K for her own good, but you'll need a bl**dy thick skin. It depends on how you see your parental role. She appears to think you're a UOF but should cough up anyway! Quote Link to comment Share on other sites More sharing options...
Oh Give Me A Home Posted May 28, 2009 Share Posted May 28, 2009 ... the rest is equity.... Is that real equity, or has she just assumed that her current place will have risen in value, "because house prices can only ever go up"? Have you got Property Bee installed - seeing that places have been around for ages and are still going down might help? Quote Link to comment Share on other sites More sharing options...
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