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Barb E Dahl

2 X Annual Salary Mortgage With Well Known High Street Building Society

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Brother has just told me that he was offered only 2 times his annual salary this afternoon. A bit of background information, he is a ftb, married with one child, and was going to put down 10%. The mortgage deal is very good. His credit checks all came back fine. He thought he was in a good position. The building society told him if he applied a month or so ago, he would have been able to get 3.5 times his salary.

He forgot to ask why things had changed.... Now he is stuck. The decent properties in his area start around 3x his annual salary. He says it will take him years to save the difference whilst renting and he showed them that he could easily afford the repayments because he gets regular overtime and an annual bonus every year which is about 20% of his wage. (which they said they couldn't include). Feel so sorry for him.

He is now worried that applying for a different mortgage will result in more credit checks and actually ruin his credit report.

Anyone else having trouble getting a mortgage?

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Brother has just told me that he was offered only 2 times his annual salary this afternoon. A bit of background information, he is a ftb, married with one child, and was going to put down 10%. The mortgage deal is very good. His credit checks all came back fine. He thought he was in a good position. The building society told him if he applied a month or so ago, he would have been able to get 3.5 times his salary.

He forgot to ask why things had changed.... Now he is stuck. The decent properties in his area start around 3x his annual salary. He says it will take him years to save the difference whilst renting and he showed them that he could easily afford the repayments because he gets regular overtime and an annual bonus every year which is about 20% of his wage. (which they said they couldn't include). Feel so sorry for him.

He is now worried that applying for a different mortgage will result in more credit checks and actually ruin his credit report.

Anyone else having trouble getting a mortgage?

...lucky escape ...this is not the time to buy..... :rolleyes:

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Anyone else having trouble getting a mortgage?

Nope. Don't have one and never want one.

However i have heard that trying to get a FTB mortgage with less than 40% deposit isn't easy (not sure of the truth in that though).

The lending rates on Zopa for young people appear to show them as being as credit worthy as a chav with £40k of store-cards, so maybe his age is the problem?

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...lucky escape ...this is not the time to buy..... :rolleyes:

+1

Everybody applying for a mortgage will be in the same boat so he can afford to sit back and wait for increased lending multiples (unlikely) or a house price correction (likely) followed by a return to sensible lending criteria (I.e. back to 3-4x salary).

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+1

Everybody applying for a mortgage will be in the same boat so he can afford to sit back and wait for increased lending multiples (unlikely) or a house price correction (likely) followed by a return to sensible lending criteria (I.e. back to 3-4x salary).

I'm a bear, but this is starting to sound unlikely to me, nominally anyway.

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If he has a family to support then the BS could have taken that into consideration. BSs are generally tighter on their underwriting than high street banks. I'm sure he would be offered more from many other lenders. 10% isn't a big enough deposit for a competitive rate, though. Better rates only really begin with a 15% deposit or better.

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Nope. Don't have one and never want one.

However i have heard that trying to get a FTB mortgage with less than 40% deposit isn't easy (not sure of the truth in that though).

The lending rates on Zopa for young people appear to show them as being as credit worthy as a chav with £40k of store-cards, so maybe his age is the problem?

He is 33 years old ...so not that young and he is always very careful with money.

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I'm a bear, but this is starting to sound unlikely to me, nominally anyway.

This is what it looks like to me as well, inflation in everything except houses is what seems to be the goal and seems to be happening. In 5-8 years house prices might be 3.5 to 4 times average salary but that average salary will be up not house prices down.

So not going to be able to afford one for about 8 years after not being able to afford one for the last 7 years, 15 years spent waiting for "Market conditions" to be right so I (and many others) can get on with life, government policy has well and truly screwed me.

Edited by pezo

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That's assuming the next Labour government decide this is what they want. The Tories are unlikely to win the next election as all they go on about is that deficit debt thing while cutting jobs, and things were soooo much better under Labour. Balls and Millipede were, do not forget, an integral part of the Broon financial team.

I agree if what you saying is labour will run the economy into the ground again and the tories will destroy savers. Either way you only win if you sit in a massive hole of debt that you can only pay off by the finest margins or if you are a banker supplying the debt.

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Try Halifax, not the best rate but they're lending me upto 3.5x 85% LTV. Try MSE for ideas to get your credit score up e.g. get on the local electrol roll. Obtain a copy of your credit rating. Pay off any outstanding debts (car, credit card, overdraft).

Is he self employed or in jobs that are risky in this part of the economic cycle?

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Brother has just told me that he was offered only 2 times his annual salary this afternoon. A bit of background information, he is a ftb, married with one child, and was going to put down 10%. The mortgage deal is very good. His credit checks all came back fine. He thought he was in a good position. The building society told him if he applied a month or so ago, he would have been able to get 3.5 times his salary.

He forgot to ask why things had changed.... Now he is stuck. The decent properties in his area start around 3x his annual salary. He says it will take him years to save the difference whilst renting and he showed them that he could easily afford the repayments because he gets regular overtime and an annual bonus every year which is about 20% of his wage. (which they said they couldn't include). Feel so sorry for him.

He is now worried that applying for a different mortgage will result in more credit checks and actually ruin his credit report.

Anyone else having trouble getting a mortgage?

I applied for a loan from Natwest about 6 weeks ago. They also offered about 2 X salary. As it is, I am going all cash as I am not a fan of banks, banksters or their fees.

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It's not the LTV that's the problem at the moment, it's the total amount of money the banks will lend.

You can get 100K at 85% LTV or 100K at 10% LTV , either way the lender is covered for any falls.

100k...sounds like peanuts.

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<br />This is what it looks like to me as well, inflation in everything except houses is what seems to be the goal and seems to be happening. In 5-8 years house prices might be 3.5 to 4 times average salary but that average salary will be up not house prices down.<br /><br />So not going to be able to afford one for about 8 years after not being able to afford one for the last 7 years, 15 years spent waiting for "Market conditions" to be right so I (and many others) can get on with life, government policy has well and truly screwed me.<br />

The Govt 'Cons' are screwing millions of others (with 'hidden' cuts) - knowing the top of the housing market is here they switched pensions etc to include/track house prices again

(after they were switched before the millennium not to track house prices as they shot up)

So people are going to be paid well under real inflation - again lowering peoples income - the scheming bastards!

I'm waiting to see what comes out from the £144.00 (Masonic/occult number) set pension with all other subsidies removed.

How many will be substantially worse/better orf?

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He is 33 years old ...so not that young and he is always very careful with money.

He has a ten percent deposit, but is about 25% through his working life.

A back of the fag packet calculation suggests he might not be able to pay back.

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I am 42 with £115,000 deposit. I, earn £23500 and also receive £11100 a year pension. Major outgoing is Child Support at £460 a month. Max i can borrow is circa £80,000, YBS i think was even less at £78,000.

Even on a LTV of less than 40% i cannot borrow more than £80k

Luckily Somerset and the Southwest are crashing hard. A similair house to this was viewed by myself in 2008 when the developer wanted circa £230,000

http://www.rightmove.co.uk/property-for-sale/property-18553266.html

Might just place a cheaky offer of 15% off with no chain .

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He has a ten percent deposit, but is about 25% through his working life.

A back of the fag packet calculation suggests he might not be able to pay back.

He invested in a lot of long term investments in his twenties rather than buying because he travels a lot with his work and I think they will mature over the next couple of years, but because he has a family now, I think he just wants to settle down a bit. This is another thing I don't understand. Even if he loses his job, his investments will cover his whole mortgage eventually. He is probably the least risky person trying to get a mortgage.

Jungllie jiim, funny you should say that, I just told my brother to start putting in cheeky offers to see what comes up, What ever is meant to be will be!

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He invested in a lot of long term investments in his twenties rather than buying because he travels a lot with his work and I think they will mature over the next couple of years, but because he has a family now, I think he just wants to settle down a bit. This is another thing I don't understand. Even if he loses his job, his investments will cover his whole mortgage eventually. He is probably the least risky person trying to get a mortgage.

Jungllie jiim, funny you should say that, I just told my brother to start putting in cheeky offers to see what comes up, What ever is meant to be will be!

No investment is guaranteed of course.

It is good to hear that your friend has other assets than the cash for the deposit.

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I am 42 with £115,000 deposit. I, earn £23500 and also receive £11100 a year pension. Major outgoing is Child Support at £460 a month. Max i can borrow is circa £80,000, YBS i think was even less at £78,000.

Even on a LTV of less than 40% i cannot borrow more than £80k

Luckily Somerset and the Southwest are crashing hard. A similair house to this was viewed by myself in 2008 when the developer wanted circa £230,000

http://www.rightmove.co.uk/property-for-sale/property-18553266.html

Might just place a cheaky offer of 15% off with no chain .

You say that but nothing I see in Taunton at the lower end of the market is crashing, same prices as 2007 some 3% - 5% offs looking at property bee.

15% off isn't a cheeky offer I would say 40% off is a cheeky offer and I would expect a minimum of 15% off.

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.... he gets regular overtime and an annual bonus every year which is about 20% of his wage.

Counts for nothing. I had regular overtime until last Autumn, now I get none.

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Brother has just told me that he was offered only 2 times his annual salary this afternoon. A bit of background information, he is a ftb, married with one child, and was going to put down 10%. The mortgage deal is very good. His credit checks all came back fine. He thought he was in a good position. The building society told him if he applied a month or so ago, he would have been able to get 3.5 times his salary.

He forgot to ask why things had changed.... Now he is stuck. The decent properties in his area start around 3x his annual salary. He says it will take him years to save the difference whilst renting and he showed them that he could easily afford the repayments because he gets regular overtime and an annual bonus every year which is about 20% of his wage. (which they said they couldn't include). Feel so sorry for him.

He is now worried that applying for a different mortgage will result in more credit checks and actually ruin his credit report.

Anyone else having trouble getting a mortgage?

Careful with money, can easily afford the repayments yet at 33 he only has a 10% deposit ....

It does't add up so I can't really blame the Building Society

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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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