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Guest wrongmove

Credit Crunch To Hasten Crash ?

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Guest wrongmove

There has been some talk on here and in articles of a credit crunch helping things along.

However look at the multiples still being offered by Northern Rock

Income Multiples Matrix

e.g. income = £25,001 - £32,500 with a good credit score,

Single income SVR x4.8, fixed rate x5.3

Joint income SVR x4.3, fixed rate x4.8

Yes, that is 4.8x joint available if you fix for at least 5 years !

NR will give you x3 joint even if your credit rating is poor and you take an SVR deal (standard variable rate mortgage)

Can anyone find any "better" offers ? :D

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Bit like a game of pass the parcel, last one to open up the package finds that there is a dog turd wrapped up in it rather than a packet of sweets.

Edited by OnlyMe

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There has been some talk on here and in articles of a credit crunch helping things along.

However look at the multiples still being offered by Northern Rock

Income Multiples Matrix

e.g. income = £25,001 - £32,500 with a good credit score,

Single income SVR x4.8, fixed rate x5.3

Joint income SVR x4.3, fixed rate x4.8

Yes, that is 4.8x joint available if you fix for at least 5 years !

Yeah, but if the average wage is £25k that gives you £120k to play with (excluding fees) and the average house is what, £190k?

Either they need to push the average wage upto £50k or something has to give, either that or the country will solely consist of old people selling their equally priced houses to each other at illusionary prices.

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Yeah, but if the average wage is £25k that gives you £120k to play with (excluding fees) and the average house is what, £190k?

Either they need to push the average wage upto £50k or something has to give, either that or the country will solely consist of old people selling their equally priced houses to each other at illusionary prices.

But a couple both earning £25,000 can get a £240,000 mortgage on a 7-year fixed rate and afford a £265,000 house (if they have a 10% deposit). They'll be taking home around £3,000 per month between them, and the mortgage repayments at 6% will be around £1,550, so they'll have money to live on.

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Guest Charlie The Tramp
But a couple both earning £25,000 can get a £240,000 mortgage on a 7-year fixed rate and afford a £265,000 house (if they have a 10% deposit). They'll be taking home around £3,000 per month between them, and the mortgage repayments at 6% will be around £1,550, so they'll have money to live on.

One loses their job and they starve or they eat and lose the house. In the present climate that is a possibility and those with common sense should see that.

If you cannot afford to buy on one wage and live basicaly then you are heading for problems in the future.

The reason why present HPs are way out of kilter and we have the mother of all debt bubbles which is our financial WMD.

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Yeah, but if the average wage is £25k that gives you £120k to play with (excluding fees) and the average house is what, £190k?

Either they need to push the average wage upto £50k or something has to give, either that or the country will solely consist of old people selling their equally priced houses to each other at illusionary prices.

That's basically what has happened over the past 5 years. Apart from a few impatient FTB who have crippled themselves buying a broom cupboard to "get on the property ladder".

Let's not forget how many parents have assisted little Kirstie or Phil to purchase a seedy bedsit, seeing it as a 'sound investment'. They're losing their shirts, as we speak.

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A guy who I work with was offered £172k last year from Northern Rock. His salary is about £36k. He has just been accepted for one of their Together packages. A maximum of £201k.Can't believe they are now offering him so much more!

He tried telling me he'd done the right thing as he only borrowed £196k in the end. £183k on a small two bed conversion in south east London. The rest he's usuing to pay off his cards and debts.

The guy is 35 and got quite upset with me last week when I told him he'd be paying off that loan for the rest of his working life and that he'd be in negative equity the moment he signed on the dotted line. He's been pissing his money up the wall for the entire time the bubble was inflating and now he decides to buy just as it's about to go bang! I give up!! :unsure:

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And what if they want to start a family? They are a couple remember.

Start a family? Outrageous suggestion! The meaning of life, the one true raison d'etre, is to purchase housing stock, didn't you know that? <_<

An average mortgage was traditionally around 33% of take home pay. Now it is hovering around 50% of a couples take home pay :o

Or it could be purchased by a BTL landlord who would proceed to get less rent than the interest on the mortgage.

Overpriced? Naah, surely not! :lol:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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