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dellboy

Just Applied For A Mortgage

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So, mainly for a laugh, I applied for a mortgage:

Good salary, perfect credit score, 3.5x borrowing with 10% deposit. Semi-detached, not new, good area.

Declined because I needed 25% deposit.

I kind of knew it was coming, but I still had to smile. If I can't borrow, then crash on! How many FTBs (not STRs) have that kind of money in the bank. I look forward to another 20% drop.

Edited by dellboy

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So, mainly for a laugh, I applied for a mortgage:

Good salary, perfect credit score, 3.5x borrowing with 10% deposit. Semi-detached, not new, good area.

Declined because I needed 25% deposit.

I kind of knew it was coming, but I still had to smile. If I can't borrow, then crash on! How many FTBs (not STRs) have that kind of money in the bank. I look forward to another 20% drop.

Not enough details, but generally 10% will get you a mortgage, but not a decent rate. Maybe you were declined a particular rate, but could get a similar product with a higher rate. In answer to your question about FTBers, there are lots of people with a lot of money out there. I know ftbers with >100k deposits.

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I got offered about 3.5 joint with a 10% deposit. Maybe nationwide are a bit slack?

P

Well, I expect that I'll be able to get one with 10% if I look around - they are advertised. This was from a building society. Still it's a far cry from 2003 where I was offered 5.5x with less than 10% down.

Maybe the joint application makes a difference...

Edited by dellboy

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So, mainly for a laugh, I applied for a mortgage:

Good salary, perfect credit score, 3.5x borrowing with 10% deposit. Semi-detached, not new, good area.

Declined because I needed 25% deposit.

I kind of knew it was coming, but I still had to smile. If I can't borrow, then crash on! How many FTBs (not STRs) have that kind of money in the bank. I look forward to another 20% drop.

Half the problem is perception. FTBers often don't think they will get a mortgage and therefore don't try. There are some with the deposits, but there are many many more who would rather spend it on holidays, cars, high end tech, etc, etc, etc.

I had an FTB come into the office last week and nearly fell off my chair in disbelief.

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Well you'll have fun getting a mortgage now because there'll be a declined mortgage application on your credit file and you'll have to tick 'yes' in all the 'have you ever been declined finance' boxes every time you want a loan/new credit card etc.

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I don't know one; smart STRs, yes, but no FTBs with that sort of money in my friend list.

Unless it's a joint mortgage with a home-owner, then STR's are FTB's when they look to get back into the market. That was the advice from my IFA when I bought back in, and that was how I was treated by the lender when the application was submitted.

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My wife got declined with a 25% deposit and borrowing 2.5x salary for the mortgage she wanted. They offered 0.97x salary. It was a building society up north with Yorkshire accents (hint).

Got there in the end and now have a similar offer of the mortgage we wanted from a different provider. It's a joint application this time round and the first refusal didn't seem to have an effect on the outcome.

We are buying though as it wasn't for fun :)

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... I know ftbers with >100k deposits.

Shit! You know some very rich/lucky people. I assume this is central London?

Myself aside I don't know a single person who is a FTB or even a potential FTB saving up and I have many friends in 25 - 35 age bracket. I think for many young people without mummy and daddys help is that just seems so out of reach so why bother.

On the mortgage side of things I was approved (in principle) for 4x joint income with a 40% deposit. We wouldn't have needed to borrow that much but that's what they were willing to lend. Which is far too much IMO. It would have pushed our finances a bit to close to the edge for my liking.

Edited by Pent Up

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Shit! You know some very rich/lucky people. I assume this is central London?

FWIW, I'm a prospective FTB with six-figure deposit available, and some 450km from central London.

A few years ago I had nothing. By the time my income rose to (and rapidly above) the level of the dole and I started to save, the bubble was so clear that I not only shied away from buying, but also familiarised myself with the government's savings guarantee and kept out of Icesave's market-beating rate.

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FWIW, I'm a prospective FTB with six-figure deposit available, and some 450km from central London.

A few years ago I had nothing. By the time my income rose to (and rapidly above) the level of the dole and I started to save, the bubble was so clear that I not only shied away from buying, but also familiarised myself with the government's savings guarantee and kept out of Icesave's market-beating rate.

To be fair mine is not far from six figures when combined with the girlfriends and it's taken a good five years hard saving. But in the world outside the financial astute HPC forum I don't know anyone with more than £10k in the bank.

Edited by Pent Up

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Shit! You know some very rich/lucky people. I assume this is central London?

Not central London, more like SE in general.. just everyday people with decent, but not fantastically well-paid jobs. A skilled/educated person in their mid 30s could/should be earning 40k, maybe 50k in London. Assuming they've been renting and saving for 10 or more years, it's no surprise that they've got a decent sum ready for a house purchase.

Probably not as unusual as you might think.

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Not central London, more like SE in general.. just everyday people with decent, but not fantastically well-paid jobs. A skilled/educated person in their mid 30s could/should be earning 40k, maybe 50k in London. Assuming they've been renting and saving for 10 or more years, it's no surprise that they've got a decent sum ready for a house purchase.

Probably not as unusual as you might think.

Maybe it's just my peer group. They don't seem to have bothered to start saving in their early 20s. A couple are mid 30s with negligible savings both still living with parents and both in full time employment so god knows what they find to waste their money on!

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I had a £95k deposit sitting in the bank aged 25 back in 2004 bought a house that year and sold in 2009 losing half my initial deposit.

Edit: My girlfriend at the time was the deciding factor re.purchase I didn't want to. Roll on 2010 we are now married and we are buying again. I take great pleaure asking her if she wasn't happy just losing £1k for every month we lived her and she'd like a second bite of the cherry after being burned so catastrophically. :lol:

Edited by tomposh101

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Think it largely depends on where you buy and how large your deposit is. I was offered 4 to 5 times my gross salary with a 30% deposit on a property in West London (Zone 2/3). I’m self employed but have 3 years of certified company accounts and a perfect credit history with no debts outside of an existing mortgage. Some lenders were wary of my visa status (not eligible for ILR until later this year) and would only offer 60% or 65% LTV though.

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Wow some poor mortgage knockbacks (25% deposit and 2.5x salary knocked back?? Sounds sensible!).

I'm a FTB (26) with approx £25k savings in Scotland - stay at home, of course. Most FTBers I know get serious help from parents.

Just found out some t@sser who keeps boasting about owning got his mortgage fraudulently and is struggling right now! He's a teacher (you can't teach with a criminal conviction, right?) and lied about his income...

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So, mainly for a laugh, I applied for a mortgage:

Good salary, perfect credit score, 3.5x borrowing with 10% deposit. Semi-detached, not new, good area.

Declined because I needed 25% deposit.

I kind of knew it was coming, but I still had to smile. If I can't borrow, then crash on! How many FTBs (not STRs) have that kind of money in the bank. I look forward to another 20% drop.

I went in today to get a 5 year fix, 30% LTV sub 1.5x single salary, bought the place in 1998 made lot of improvements, EA prices around 330K.

Needed

1. Passport

2. 3x months worth of pay slips

3. 3x Months worth of statements on 2x current accounts

4. Details of any saving investments

5. Details of all my out goings

6. Was asked about any future life changes (do I want more kids/holidays)

7. Details of everything I spend on each month (Fags/booze)

8. Benefits

9. Dependants

10. Nature of business I work in.

11. Life insurance arrangements

12. Personal savings

13. Other assets

14. Details of any time I have been out of work in the last 10 years.

Now I know lots of that was sales talk... but the requirements where more stringent than back when I was self employed (1998) all I needed then was 3 years worth audited accounts.

I spend 1.5 hours with an HSBC consultant, pointing out the fine print..should I get accepted for the loan. All this with a +950 credit score? I'd expect that mortgage famine to continue a long time, or maybe I just look shifty (She defo didn't fancy me)

Last time I re-mortgaged (5 years ago) I was asked when I would be free for a valuation, bloke came round, took a quick look around the place, and asked what I thought it was worth....

I replied I don't give a feck as long as over 220K, LTV is sub 50% (AKA best rate) and freakishly enough...that's exactly what it was valued at.

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Not central London, more like SE in general.. just everyday people with decent, but not fantastically well-paid jobs. A skilled/educated person in their mid 30s could/should be earning 40k, maybe 50k in London. Assuming they've been renting and saving for 10 or more years, it's no surprise that they've got a decent sum ready for a house purchase.

Probably not as unusual as you might think.

Seems doable if BoMaD has been there throughout life, ie free driving lessons, early years on dad's car insurance builds up some no claims, help with money for first car, early rent, student fees, moving for first job, possibly living at home if parents are in the SE. And of course to bulk up the house deposit itself. The rest of us have more commonly had debts to deal with during the age of 20s from various sources before any capital is built up.

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Shit! You know some very rich/lucky people. I assume this is central London?

Myself aside I don't know a single person who is a FTB or even a potential FTB saving up and I have many friends in 25 - 35 age bracket. I think for many young people without mummy and daddys help is that just seems so out of reach so why bother.

Yeah! The 100K FTBs are either banksters or bank of Mum & Dad.

As for all the other twenty somethings - I really am flabbergasted that they stick around - you can actually have a decent life with short hours and long holidays on the continent. Here in the UK even the pubs are too pricey these days.

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Seems doable if BoMaD has been there throughout life, ie free driving lessons, early years on dad's car insurance builds up some no claims, help with money for first car, early rent, student fees, moving for first job, possibly living at home if parents are in the SE. And of course to bulk up the house deposit itself. The rest of us have more commonly had debts to deal with during the age of 20s from various sources before any capital is built up.

I can't speak for everyone, but I had absolutely no help from my parents, but still managed a 6 figure deposit.

None of the above is applicable in my case. Didnt drive until 27, went to uni at 18 etc.

Edited by twatmangle

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I can't speak for everyone, but I had absolutely no help from my parents, but still managed a 6 figure deposit.

None of the above is applicable in my case. Didnt drive until 27, went to uni at 18 etc.

Are you telling us you managed to save at least £100,000?

You must have pissed away the best years of your life eating beans and never going out.

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Are you telling us you managed to save at least £100,000?

You must have pissed away the best years of your life eating beans and never going out.

Not necessarily, he might just have a very well paid job. As the average earner £100k savings would be near enough impossible.

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  • 277 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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