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Bluechutes

How Do People On Low Salaries Buy Houses?

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Where i live in Wiltshire the cheapest property will set you back approximately £100,000 and i always wondered, how do the young people or not very well paid buy houses?

Today one solution presented itself to me. My partners colleague has just taken out a mortgage to buy a £100,000 house. The bank/building society has been sensible with the salary multiple and given her a mortgage of £50,000. That's alright then, she must have a good deposit? Not quite, she has no deposit and the bank is giving her a loan for the other £50,000. :o

Just to make things more insane, it is a house of reema construction.

Wholly irresponsible?

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Where i live in Wiltshire the cheapest property will set you back approximately £100,000 and i always wondered, how do the young people or not very well paid buy houses?

Today one solution presented itself to me. My partners colleague has just taken out a mortgage to buy a £100,000 house. The bank/building society has been sensible with the salary multiple and given her a mortgage of £50,000. That's alright then, she must have a good deposit? Not quite, she has no deposit and the bank is giving her a loan for the other £50,000. :o

Just to make things more insane, it is a house of reema construction.

Wholly irresponsible?

Same bank? Fools.

A different bank? Even bigger fools.

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Where i live in Wiltshire the cheapest property will set you back approximately £100,000 and i always wondered, how do the young people or not very well paid buy houses?

Today one solution presented itself to me. My partners colleague has just taken out a mortgage to buy a £100,000 house. The bank/building society has been sensible with the salary multiple and given her a mortgage of £50,000. That's alright then, she must have a good deposit? Not quite, she has no deposit and the bank is giving her a loan for the other £50,000. :o

Just to make things more insane, it is a house of reema construction.

Wholly irresponsible?

is it the same bank? surely not.

I have heard of mortgage advisers suggesting people get a bank loan for the deposit - different bank to the mortgage one.

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Well, it depends on the combined interest rate and lending ratio … but why the split? Does this sidestep a sensible limit, or is it just the bank manager wanting to hit his loans target?

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erm somewhere does a mortgage which offers 125% of the price

with upto 30k as a unsecured loan.

I assume thats how they get round any guidelines.

Its insane.

I thought it was northern rock but can't see the ad I was thinking of now...

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erm somewhere does a mortgage which offers 125% of the price

with upto 30k as a unsecured loan.

I assume thats how they get round any guidelines.

Its insane.

I thought it was northern rock but can't see the ad I was thinking of now...

It's the Northern Rock together mortgage.

With their 125% mortgages and salary multiples of over 5 I'm concerned about their prospects in the coming crash.

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These days if you go to a mortgage broker you will get a mortgage, pretty much irrespective of anything.

I was offered a 100% mortgage of 280k from Northern Rock, including the option of deposit being available with a loan!

I know that my real affordability is around 150k.

5x salary, self-cert mortgages, parents chipping in with a deposit, friends clubbing together... the madness of crowds...

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The 95% LVT part is limited by the official lending ratios, and so the bank can claim to be responsible, but the extra £30k clearly sidesteps this!

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its complete madness

It's not. It's just the biggest credit bubble in human history, fuelled by corrupt central banks in collusion with irresponsible governments. It will end up in tears and a lifetime of hardship.

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  • 302 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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