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gruffydd

Mortgage Anecdotals

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Tale number 1) Guy I know returns from America - gets mortgage - no income, no job. Then mortage off is withdrawn but now they're saying they should be able to push it through.

Tale number 2) Neigbouring property fails to sell at auction for £200,000 - now up for sale at £250,000 - they've received several offers at that level but nobody can proceed as awaiting news on morgages.

Tale number 2 was repeated time and again when I showed false interest in several properties. Oh no, several offers - I dug deeper and there were mortgage funding issues.

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EAs talking rubbish about loads of offers is very common... how stupid are they... it just turns me off.... I have no interest when they do that...

I am regularly seeing SSTCs reappear on RM - usually takes 2 to 3 months... I get the impression that they hold out hope of exchange and completion hence the length of time from the boards going up to the properties coming back on the market.

One I noticed this week has now dropped their ludicrous asking price, IMPO, by a huge 5K on a 300K house.

Nuts.

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Tale number 1) Guy I know returns from America - gets mortgage - no income, no job. Then mortage off is withdrawn but now they're saying they should be able to push it through.

Tale number 2) Neigbouring property fails to sell at auction for £200,000 - now up for sale at £250,000 - they've received several offers at that level but nobody can proceed as awaiting news on morgages.

Tale number 2 was repeated time and again when I showed false interest in several properties. Oh no, several offers - I dug deeper and there were mortgage funding issues.

This seems fairly common, although the estate agents i'm dealign with having seen my application and offer all signed up and ready to go still won't accept my offers at 10% under asking for the flat we currently rent. (a mortgage would halve our rent). It seems they'd rather get everything tangled up in chains than just accept the reduced offer. Madness. But c'est la vie.

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This seems fairly common, although the estate agents i'm dealign with having seen my application and offer all signed up and ready to go still won't accept my offers at 10% under asking for the flat we currently rent. (a mortgage would halve our rent). It seems they'd rather get everything tangled up in chains than just accept the reduced offer. Madness. But c'est la vie.

Have you kept the offer open with them? If so, they and the vendor now know they have a base offer from you and can go back to you in a few months if they can't better it. I'd suggest, if you're still interested, that you you write to them and tell them the offer still stands, but that it will be reduced by 1% every fortnight until deal is agreed and house taken off market.

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EAs talking rubbish about loads of offers is very common... how stupid are they... it just turns me off.... I have no interest when they do that...

I am regularly seeing SSTCs reappear on RM - usually takes 2 to 3 months... I get the impression that they hold out hope of exchange and completion hence the length of time from the boards going up to the properties coming back on the market.

One I noticed this week has now dropped their ludicrous asking price, IMPO, by a huge 5K on a 300K house.

Nuts.

Should have upped the price to £350k so he could accept £320k..

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The great British public and their EA pals appear to be living in a limbo land, unable to accept that you can no longer get NINJA or 10 times lied about income mortgages.

The guy returning from the US was told there'd be no probs from the morgage broker. Then the mortgage was blocked by the bank. If they do push it through, I guess they'll have to commit some level of fraud.

Reality is starting to bite, one way or the other. There'll be no return to 2007 practices.

Edited by gruffydd

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How about a mad rush for low-priced mortgages? First Direct swamped by applications.

Foolishly I am looking to buy and rang up First Direct last week - date set for an initial consultation is at the start of September! I guess that sort of delay would cause problems in a chain and there's no guarantee they will accept your application anyway.

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EA; ' we already have a firm offer of x, ready to go, you will need to pay x +5% or you will miss the boat..'

If they have not accepted your offer then if it remains in place you are just being a foil for other bids. And even up to exchange they will be trying to get a better offer (like Ken and his chippy) while you potentially spend money. Anyway given the past few days your offer is too high :D

Yes, you have to be hard - put in your offer, tell them the offer is for a limited period and the moment they tell you that others are interested, try to start a bidding war, etc, you pull out.

Probably will not stop them claiming to others that someone is interested.

A big problem, as we all know, is that many EAs do not 'get it' yet let alone sellers.

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How about a mad rush for low-priced mortgages? First Direct swamped by applications.

...although Rebecca Hirst, a spokeswoman for First Direct, confirmed that customers were having to wait up to a month to get an interview with the bank's mortgage staff, she said: "We don't want people to panic about this. We're sending letters to everyone that has rung up about the mortgages confirming that, providing they qualify, they will get the interest rate they initially called about."

An opportunity for HSBC/first direct to pick ultra low risk customers.

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Have you kept the offer open with them? If so, they and the vendor now know they have a base offer from you and can go back to you in a few months if they can't better it. I'd suggest, if you're still interested, that you you write to them and tell them the offer still stands, but that it will be reduced by 1% every fortnight until deal is agreed and house taken off market.

They rejected it so i now assume (perhaps nieveily, spelling) it is withdrawn. Don't really care, we're happy renting but an opportunity to halve our rent seemed reasonable option at this time. We're unable to find a house to buy at a price we can avoid being slaves at.

Re the first direct mortgage comment. That's exactly the offer we showed them. FD don't lend much, quite rightly so. i think they said on the phone it was 2.5*joint or 2.75. Not sure. Anyway, so the EA should know its a sound offer. We had to wait 4weeks for an appointment with an advisor on the phone. She spent half the call tryign to sell me life insurance. I suspect if they spent less time selling and more time ffering they would have a smaller lead time.

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This seems fairly common, although the estate agents i'm dealign with having seen my application and offer all signed up and ready to go still won't accept my offers at 10% under asking for the flat we currently rent. (a mortgage would halve our rent). It seems they'd rather get everything tangled up in chains than just accept the reduced offer. Madness. But c'est la vie.

Maybe the seller has told them that's the price. Utlimately if the seller is as determined as sticking to their price as you are to yours it's going nowhere.

With agents it's about turnover. If the agent is turning over lots of properties (and they may be doing quite well, even if the market is down nationally) then they have no incentive to work on lowering the price. What would be madness is if they were doing well to accept an offer below what they thought they could get.

Rather than get annoyed, I'd just take my money somewhere else if I wanted a good deal, as this doesn't sound like a motivated seller to me.

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welcome to the next ten years of zombie banks,mega bank salaries and a deleveraging economy.could be twenty

Mortgages are out there for people who qualify. The only difference is now, people aren't qualifying, people who would have in 2005-2007.

If you turn up at the bank, with a 10% deposit already saved, have a good employment history/future, history of saving, and no blemishes on your credit file, I doubt you'd be refused a 3x joint mortgage.

It's only the, large multiples, self-certs, BTL, IO and high LTV mortgages that have been removed.

Just so happens that these were the norm at the peak.... now we're back to the old-skool rules, few qualify. It's not so much a credit drought or a mortgage drought, it's a qualification drought.

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Maybe the seller has told them that's the price. Utlimately if the seller is as determined as sticking to their price as you are to yours it's going nowhere.

With agents it's about turnover. If the agent is turning over lots of properties (and they may be doing quite well, even if the market is down nationally) then they have no incentive to work on lowering the price. What would be madness is if they were doing well to accept an offer below what they thought they could get.

Rather than get annoyed, I'd just take my money somewhere else if I wanted a good deal, as this doesn't sound like a motivated seller to me.

The EA's say its been cut to the point the sale price will not cover outstanding debts against it. I trust them as far as i can throw them and i'm pretty weak. Looking at land reg it was bought for 174 in 2006. now on at 149 i offered 135, no budging. We will go somewhere else when we find the right place but this was just convenient to buy 'cheaply'.

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BTw - new instructions up 60-70% on this time last year down here - a real flood of properties up for sale. Nobody buying. This stat is from local EA contact. Not sure it's public knowledge. This looks like fun.

Edited by gruffydd

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BTw - new instructions up 60-70% on this time last year down here - a real flood of properties up for sale. Nobody buying. This stat is from local EA contact. Not sure it's public knowledge.

So, big increase in sellers but probably fewer potential buyers out there.

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We had to wait 4weeks for an appointment with an advisor on the phone. She spent half the call tryign to sell me life insurance.

Why do they make it so much hassle? Who is the customer here?

Quite apart from the continuing collapse of the economy I'm not keen on buying in the immediate future anyway because of the hoops you have to jump through and the cr4p you have to put up with. It's like you have to beg these people to put you in a lifetime of debt. Oh please please impoverish me and treat me like cr4p! I want to worry all my life and work like a slave! Me next me next!

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How mean of you not to cover the vendor's potential loss. It is irresponsible of you to expect the vendor to make a loss on a property investment. Shame on you :lol::lol::lol:

I know, remarkable eh, but the fact remains, if they cannot afford to let it go at X price, then thats the way it is, move on. It's stuck until somethign in their situation changes.

Re: the buying a flat and on HPC. I am not saying its the best idea nor am i saying we're comitted to doing it. It was worth a try to see if they would bite. They aren't biting.

IR would need to be at 5.5% before it even starts matching our rent, let alone the repayment aspect. my own view, i think we're going to be stuck in a long drawn out collapse, i might aswell free up some cash flow to increase the deposit for when it really hits the higher price properties we're actually interested in. That was my thinking anyway.

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Mortgages are out there for people who qualify. The only difference is now, people aren't qualifying, people who would have in 2005-2007.

If you turn up at the bank, with a 10% deposit already saved, have a good employment history/future, history of saving, and no blemishes on your credit file, I doubt you'd be refused a 3x joint mortgage.

It's only the, large multiples, self-certs, BTL, IO and high LTV mortgages that have been removed.

Just so happens that these were the norm at the peak.... now we're back to the old-skool rules, few qualify. It's not so much a credit drought or a mortgage drought, it's a qualification drought.

And 2008/9/10.

new rules on sensible lending mean maybe we will see a return to sensible lending.

3 times joint for most is NOT sensible lending.

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I rang up HSBC (who I have had a mortgage with for about 7 years) to look at increasing the mortgage ready to buy a house (instead of current flat).

I phoned up and got a quote straight away, and the mortgage was agreed in principal on the phone. They have now sent through the details (with a couple of days of the call).

They agreed to lend 3.5 x my salary in total. The good thing is that the mortgage I currently have is BOE + 1% for the life of the loan, and they agreed to port this over (which is about half the amount of the new mortgage), and then take out a new mortgage from their current range for the difference. This new loan would be about 4.5% or fixed for 2 years at 5.5%. 10% deposit on total amount.

Before you shout at me, I wanted to get the mortgage in principal ready as decent 3 bed semis near me are getting near acceptable prices (a little further required but I'm in no rush).

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I rang up HSBC (who I have had a mortgage with for about 7 years) to look at increasing the mortgage ready to buy a house (instead of current flat).

I phoned up and got a quote straight away, and the mortgage was agreed in principal on the phone. They have now sent through the details (with a couple of days of the call).

They agreed to lend 3.5 x my salary in total. The good thing is that the mortgage I currently have is BOE + 1% for the life of the loan, and they agreed to port this over (which is about half the amount of the new mortgage), and then take out a new mortgage from their current range for the difference. This new loan would be about 4.5% or fixed for 2 years at 5.5%. 10% deposit on total amount.

Before you shout at me, I wanted to get the mortgage in principal ready as decent 3 bed semis near me are getting near acceptable prices (a little further required but I'm in no rush).

When you start paying it down, which one are you clearing first? The BOE + 1% part?

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When you start paying it down, which one are you clearing first? The BOE + 1% part?

Both at the same time. In fact the existing one keeps the original terms as well so will now only run for 18 years.

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Re the first direct mortgage comment. That's exactly the offer we showed them. FD don't lend much, quite rightly so. i think they said on the phone it was 2.5*joint or 2.75. Not sure. Anyway, so the EA should know its a sound offer. We had to wait 4weeks for an appointment with an advisor on the phone. She spent half the call tryign to sell me life insurance. I suspect if they spent less time selling and more time ffering they would have a smaller lead time.

I've been offered 5x salary by FD. (Before you all tut my wife is currently self employed so we are very safe borrowing this.)

I think they are taking in to consideration credit score, outgoings and deposit. We have also been a long standing customer of theirs and previously had a mortgage with them before we STRed earlier this year.

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  • 140 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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