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Fsa Mortgage Stats

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Good one.

The types of mortgeage chart on page 8 is kind of scary.

Just look at the number of fixed rates in 2007 and just before. These must be coming to the end of the life. They haven't yet as we would see a sudden spike in either fixed or variables and we don't. Basically all that red has to go somewhere and it's not yet according to the charts.

They could of course be just reverting to variable. Give the news coverage that will really hurt, supposed to be significantly more than they were expecting.

And Interest only sales prior to 2007 look to be around 25 - 30% of sales. Didn't realise that. It's crazy.

I once had a so called educated girl tell me to buy (2005 ish) with an interest only mortgage because you can sell in a few years and make a profit, move up the ladder etc. I wonder how many others believed that cr@p.

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Apologies if this has been posted before but the FSA stats came out at the end of August.

Links on this page to some interesting spreadsheets.

http://www.fsa.gov.uk/Pages/Doing/Regulated/Returns/psd/publications/index.shtml

Things like Interest Only, LTVs etc

Lot of info there!

I've writtenagain to my MP to look at introducing previous income verification checks with the HMRC prior to awarding SMI. This is in light with the CML agreement the other week with HMRC that this can be done for new applicants.

Will use this data in any FU.

Thanks.

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FTBers good luck!

As expected, first-time buyers needed relatively higher

LTV ratios than other types of borrowers. Only 9%

of mortgages in the period 2010/11 were given with

a LTV of between 85-90%; and 19% with a LTV of

between 75%-85%. This compares to 25% and 29%

respectively when we focus on first-time buyers.

So 54% of FTBers get a mortgage for more than 75% LTV.

Or to highlight it in a better way. A whopping 46% of FTBers need a deposit of more than 25%!!!!

As I said, Good Luck

Edited by Redcellar

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Interest Only with repayment vehicle "unknown"

2007 24.4%

2010 12%

2011 Q1 10.8%

Still too many!

Ah but that just means they asked people on an interest only mortgage how they were going to pay it back. I don't believe it means they check and approve that it is a reaility and is reasonable.

For example, I could say I intend to sell it at the end, I've got a savings fund going, I have shares etc.etc.etc.

All BS.

IO is a terrible mortgage because the average person is not financially astute and the banks know this. Forced house sale or extended mortgage is in reality what will happen for most.

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Very interesting read.

Particularly the mortgages given without any income being verified - as little as 45% of applications and even today they are only verifying around 70% - Mr Pebble will not be happy about this!

Credit to individuals with impaired credit history, non-verified income and LTV above 85%

Looks like theyve completely stopped lending to this sector since 2008 - although it really is suprising they ever thought it would be a good idea in the 1st place!

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8.9 Income multiples

A look at the structure of income multiples shows

that the trend over the last year has been for some

‘normalisation’ within several of the bands, with

a bias towards more conservative (or less reckless)

income multiples. The proportion of mortgage sales

to customers with income multiples above 5.5x

reached 1.6% in Q1 2008, declining to 0.8% in Q1

2010 and showing some reversal in Q1 2011, when

it rose to 1.0%. The same can be said of the 4.5-5.49

band (although there was no material change in the

proportion between Q1 2010 and Q1 2011). However,

the less than 2.5x income multiple has become more

popular now than before the crisis: in Q1 2008, this

multiple represented 36.3% of all mortgage sales

versus 42% in Q1 2011 – in any case lower than in

Q1 2009. For the 2.5-3.49 band, the trend has been

very much towards a sustained decline since Q1 2008.

This must be assuming people are telling the truth about their income.

Edited by mason

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Lot of info there!

I've writtenagain to my MP to look at introducing previous income verification checks with the HMRC prior to awarding SMI. This is in light with the CML agreement the other week with HMRC that this can be done for new applicants.

Will use this data in any FU.

Thanks.

Nice one.

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What I have never understood about self certified mortgages is why the tax man is told one gross annual income and the mortgage broker another......maybe the mortgage broker should liaise with the tax man. :unsure:

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What I have never understood about self certified mortgages is why the tax man is told one gross annual income and the mortgage broker another......maybe the mortgage broker should liaise with the tax man. :unsure:

Voluntary system started 31st Aug

The Mortgage Verification Scheme, which comes into force from today, means that lenders can choose to pass on applicants’ details to HMRC for additional checking. If they don’t match what is written on their tax returns, they could face an investigation.

A spokesman for the Council of Mortgage Lenders, which is setting up the scheme with the Building Societies Association and HMRC, said that the scheme will “help HMRC to risk assess whether the information it has been given on applicants’ tax affairs is correct”.

The scheme, which was mentioned in last year’s Budget, aims to stop mortgage fraud. This happens when people overstate their income in order to borrow more money. This can involve forged payslips, but often involves those with more complex financial affairs and less regular incomes.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8732253/HMRC-to-verify-mortgage-applications.html

Edited by Redhat Sly

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