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Home Owners Finding It 'virtually Impossible' To Remortgage

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8347512/Home-owners-finding-it-virtually-impossible-to-remortgage.html

Home owners finding it 'virtually impossible' to remortgage
Home owners with equity of less than 15 per cent are finding it virtually impossible to find a new mortgage, new figures suggest.
The exclusive data, based on more than a quarter of a million remortgage valuations since 2007, reveals the full extent of the difficulties facing home owners looking to secure a new home loan.
At the height of the property boom in 2007, home owners did not need any equity in their homes to remortgage, with one in 20 borrowing more than the actual value of their home. It meant the money raised could be used for home improvements.
However, not only is now impossible for those already on the property ladder to strike the same deal, but they will need a deposit of at least 15 per cent.
Banks and building societies imposed strict lending criteria after the credit crisis and there are no signs that the trend is easing.

So where are we now that winter is almsot over, at least weather-wise:

1. Homeowners shut out

2. FTBs shut out

3. IR rising despite vigilance at the BoE

4. Joblessness is on the rise

5. GDP "unexpectedly" slumping as expected

I would say all the ingredients are there and it just needs a couple of shakes of sheer panic and the recipe is done!

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So 100% of people who took out mortgages with LTV of greater than 90% are now screwed unless they have say £20k laying in a bank account.... They won't be able to remortgage and they are heading towards the SVR which is already disconnected from the base rate.

Still it could be worse...

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Good article, and a very good point - a lot of people who bought at the top with small deposit are now being forced onto their lenders' SVR and cannot remortgage. These "2nd rungers" are stuck.

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I take it all the lie-to-buyers will have to stay put, and take what is given.....all the good rates available elsewhere will require proof of income, genuine salary slips or accounts. :unsure:

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This will certainly help put the interest rate fox amongst the SVR mortgage chickens when rates rise. No way out!

On a serious note, all the bear cards are stacking up nicely, but when the f4ck are we going to see some action?! :angry:

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So where are we now that winter is almsot over, at least weather-wise:

1. Homeowners shut out

2. FTBs shut out

3. IR rising despite vigilance at the BoE

4. Joblessness is on the rise

5. GDP "unexpectedly" slumping as expected

I would say all the ingredients are there and it just needs a couple of shakes of sheer panic and the recipe is done!

1+

All the dominoes are in line :rolleyes:

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I know someone trying to remortgage, currently stuck on a rip off rate.

They are are over paying by 1000 a month and just paid of a windfall lump sum. They are desperate to get to 75% LTV so they can get a decent rate.

Scarey how much money is involved though.

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So 100% of people who took out mortgages with LTV of greater than 90% are now screwed unless they have say £20k laying in a bank account.... They won't be able to remortgage and they are heading towards the SVR which is already disconnected from the base rate.

Still it could be worse...

Exactly, the MPC can go f*ck themselves as base rate is simply a laughable irrelevance now (in terms of mortgage rates). Still, some nice IR rises would put the fear up the hanger-ons.

Hope the people that rent from the banks get their mortgage fixed (if, even they can...) quick smart. After all, they wouldn't want to miss the boat now....

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So does this also mean they are stuck with variable rate mortgages once any discounts expire?

yes and possibly worse, if the lender decides they are a higher risk they may have to pay an even higher rate.

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yes and possibly worse, if the lender decides they are a higher risk they may have to pay an even higher rate.

That's simply awful for them. :lol: When I had a mortgage in Britain I would keep swapping to the discounted 2/3 year deals. It made a huge difference. I can see the banks being taken to court over this. There's probably some nanny-state human rights act covering this.

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So where are we now that winter is almsot over, at least weather-wise:

1. Homeowners shut out

2. FTBs shut out

3. IR rising despite vigilance at the BoE

4. Joblessness is on the rise

5. GDP "unexpectedly" slumping as expected

How is tractor production?

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I know someone trying to remortgage, currently stuck on a rip off rate.

They are are over paying by 1000 a month and just paid of a windfall lump sum. They are desperate to get to 75% LTV so they can get a decent rate.

Scarey how much money is involved though.

If they can afford £1k a month overpayment just why didn't they save up a larger deposit in the first place! Trouble is if house prices do crash I suspect prices will be falling faster than they can repay.

What value property are they in so we can have a rough guess of how much they owe.

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So 100% of people who took out mortgages with LTV of greater than 90% are now screwed unless they have say £20k laying in a bank account.... They won't be able to remortgage and they are heading towards the SVR which is already disconnected from the base rate.

Still it could be worse...

...they could be 100% IO?

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I take it all the lie-to-buyers will have to stay put, and take what is given.....all the good rates available elsewhere will require proof of income, genuine salary slips or accounts. :unsure:

Colonel Gaddafi is the Pope.... :rolleyes::rolleyes:

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As I have said in one of my other posts, interest Only mortgages are now so rare and mainly avaiable to 75% ltv or more, there are exceptions but the rates are terrible.. Many of those that have previously relied on IO mortgages and sitching between the two are going to find it vary difficult. Also this will also limit others buying who maybe have the deposit but cant yet afford a repayment mortgage..

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As I have said in one of my other posts, interest Only mortgages are now so rare and mainly avaiable to 75% ltv or more, there are exceptions but the rates are terrible.. Many of those that have previously relied on IO mortgages and sitching between the two are going to find it vary difficult. Also this will also limit others buying who maybe have the deposit but cant yet afford a repayment mortgage..

Good news isn't it. Imagine a market based on sensible lending. Wild thought eh.

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I thought SVR for most of the banks is quite low at the moment. Can't see why it would cause anyone too much of a problem if comming off a 5% fix onto 3-4% SVR. I may be wrong but assumed interest only mortgages dont just end after a couple of years, you would just drop onto SVR for the remainder of the term. Unless there is some form of margin call being made in a falling market, I can't see it being that bigger issue unless rates suddenly rise back to 5%+.

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  • 312 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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