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Barclays Withdraw 85% Mortgages, Now 80% Max! Ltv

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Someone earning £50,000 can only borrow £150,000 and would need a £40,000 deposit

Someone earning £25,000 can only borrow £75,000 and would need a £20,000 deposit

What say you Bulls?

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I guess most will say Barclays is not for first time buyers, but they are seeming to lead the way.

Solid bank only wants the best customers?

Nice work barclays I guess!

Might buy some more shares in them lol

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Someone earning £50,000 can only borrow £150,000 and would need a £40,000 deposit

Someone earning £25,000 can only borrow £75,000 and would need a £20,000 deposit

What say you Bulls?

My belief is that until 90-95% mortgages become the norm again at competitive rates there will be no future growth in the housing market without wage inflation.

Not sure if it will necessarily cause further drops in house prices though as current homeowners are probably on relatively low mortgage rates so will have no need to sell.

So basically tougher for buyers and sellers (who have to sell). So currently the situation is that house prices have dropped but the cost of owning a home is far higher so you would have been better buying at the peak on a low interest rate.

The lesson is to save like a barsteward now with the hope of buying a house at "the bottom" with little or no mortgage.

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Someone earning £50,000 can only borrow £150,000 and would need a £40,000 deposit

Someone earning £25,000 can only borrow £75,000 and would need a £20,000 deposit

What say you Bulls?

"Doesn't matter, as most buyers are joint mortgage applications so affordability isn't a problem."

That will be the old bull chestnut. Apart from there being no evidence to support this, and by following this same strain of logic, there would never of been the need for 4/5/6 x income multiples in the first place.

Is something lurking around the corner? I think so, expect fixed rate deals to shoot up in interest.

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Someone earning £50,000 can only borrow £150,000 and would need a £40,000 deposit

Someone earning £25,000 can only borrow £75,000 and would need a £20,000 deposit

What say you Bulls?

Where do you get this from? I put in £50k single earnings and the default lending is £150k, but the sliding scale goes up to 250k. With 25k it's 75k and 125k.

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My belief is that until 90-95% mortgages become the norm again at competitive rates there will be no future growth in the housing market without wage inflation.

Not sure if it will necessarily cause further drops in house prices though as current homeowners are probably on relatively low mortgage rates so will have no need to sell.

So basically tougher for buyers and sellers (who have to sell). So currently the situation is that house prices have dropped but the cost of owning a home is far higher so you would have been better buying at the peak on a low interest rate.

The lesson is to save like a barsteward now with the hope of buying a house at "the bottom" with little or no mortgage.

I understand your logic, but why to people sell and why do people buy.

normally because they NEED to, not necessarily HAVE to.

So we still have properties on the market in fact more than normal, so price is a very important issue, to market the property costs money, so agents will only do this at the right marketable price.

Buyers, need a place to live but affordability will be an issue with deposits, and tighter controls on multiples.

further falls in prices Barclays are predicting IMO.

I will continue to save

How can you say the right thing to have done would have een to pay 30% more cause it was easier to get a mortgage. Maybe as of todays figures but what about that Standard variable rate when interest rates shoot up HIGH!!!

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So currently the situation is that house prices have dropped but the cost of owning a home is far higher so you would have been better buying at the peak on a low interest rate.

Unless you had saved up a really hefty deposit.... or sold your overpriced property somewhere near the peak.

But who would have done that? Everybody knew house prices would go up forever and ever , so only a mad man would do that!

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Ive just been to inquire regarding a FTB mortgage at Halifax. I have half the deposit I need and will have a full deposit certainly by this time next year.

Couple of quotes from the mortgage advisor " Ive almost forgotten how to do a FTB mortgage its been that long"

Me: "Why do I need 10% deposit, is it because as a business you are factoring in another 10% decline in the market"?

Advisor "Yes"

Advisor" If you want a secured loan on your house you need at leats 20% equity"

She was very informative :unsure:

Also the best rate I could get with a 10% was 7.01% which she said was the standard now for all FTB with 10%

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Ive just been to inquire regarding a FTB mortgage at Halifax. I have half the deposit I need and will have a full deposit certainly by this time next year.

Couple of quotes from the mortgage advisor " Ive almost forgotten how to do a FTB mortgage its been that long"

Me: "Why do I need 10% deposit, is it because as a business you are factoring in another 10% decline in the market"?

Advisor "Yes"

Advisor" If you want a secured loan on your house you need at leats 20% equity"

She was very informative :unsure:

Also the best rate I could get with a 10% was 7.01% which she said was the standard now for all FTB with 10%

WHAT? with base rate at 0.5%?

It looks like they know the system has failed and are milking as much money out of customers as they can.

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Also the best rate I could get with a 10% was 7.01% which she said was the standard now for all FTB with 10%

Cunning. Appease the Dear Leader with a 10% deal, then make it expensive enough that no-one in their right mind would go for it. Like it.

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....the best rate I could get with a 10% was 7.01% which she said was the standard now for all FTB with 10%

is that right? fixed or variable? i can scarcely believe it. if so, the banks have really got us over a barrel now... coining it from both taxpayers and customers...

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WHAT? with base rate at 0.5%?

It looks like they know the system has failed and are milking as much money out of customers as they can.

If everyone else foolows suit - there might be a small chance that the taxpayer might see a tiny percentage of their money back then

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So for a £100,000 mortgage you now need a £20,000 deposit instead of £15,000.

£200k is now a £40k deposit, instead of £30K.

Back to the maths that I mentioned here

Housing market in "recovery" banks panic and ration lending.

We've already had fix rates going up, now it's LTV. Again something that I said would happen as LTV is a very good way of rationing.

Luckily this country has a high saving ratio so this policy will fail to have any effect. At current prices it would take me years to save this sort of money.

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is that right? fixed or variable? i can scarcely believe it. if so, the banks have really got us over a barrel now... coining it from both taxpayers and customers...

I doubt very much whether they're coining it in from anyone on that particular deal. I think the phrase that applies is "For Demonstration Purposes Only".

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Looks like my Reform Club old boy was correct when he said there was a shit storm approaching that would create the second leg down. Barclays are clearly preparing themselves. Will be interesting to see if there is any further disappearance of small desposit mortage products from the proper, non state banks.

10% already in negative equity, if the market drops another 10% in value then 25% will be in NE according to Radio 4. Oh dear.

Wonder if this time next year we will be recreating the infamous Norwegian football commentator vitriol for Sibley and gang…….â€your boys took one hell of a beating…..â€

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20% deposits look a backward step, although Barclays traditionally have always offered good rates for bigger deposits. They never chased the FTB market.

They recently stated only 1% of their mortgage book was in negative equity.

I'd be more worried if this were Lloyds or Royal Bank.

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I'd be more worried if this were Lloyds or Royal Bank.

Exactly I as a taxpayer wish to take on more mortgages and increase bank debt to GDP ratio.

I mean what can possible go wrong.

If you don't risk big you don't win big right?

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As was foretold by the Sages of HPC.co.uk in days of yore, the banks did reduce the LTVs they were willing to lend on and lo! This single act did, cleverly and without fanfare, greatly reduce the amounts a denizen could pay for a house for a given sized pot of their own Gold. And the banks did acheive this without altering the Sacred Cow of multiples.....

And the Bulls were sore afraid.

Edited by General Melchett

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Where do you get this from? I put in £50k single earnings and the default lending is £150k, but the sliding scale goes up to 250k. With 25k it's 75k and 125k.

Yes, I was providing examples tied to sensible/minimum deposits to provide the most bullish interpretation of their lending criteria

You can of course borrow much more, but the deposit required rockets up accordingly

If you can find a significant number of 25k salaried people with 50k deposits for those 175k houses do let me know, without this, Barclays will not be leading the recovereh with their latest announcement.....

Edited by pete.hpc

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