Bruce Banner Posted November 14, 2012 Share Posted November 14, 2012 What were the salary multiples on the mortgage? 3 times main plus 1 times second? We managed to get 2.5 times joint income by having an endowment mortgage and luckily we were able to cash it in before it became worthless. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 14, 2012 Share Posted November 14, 2012 Hasnt been touched in 30 years. Next door sold for 385k in nov 2010 having had the full side extension done. This area is cheaper as it has no mains sewage or gas and is out on its own Got to ask why, during all those property porn years, no one "snapped this up". Something bad happen there? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 14, 2012 Share Posted November 14, 2012 We managed to get 2.5 times joint income by having an endowment mortgage and luckily we were able to cash it in before it became worthless. You got a 2.5 times joint income mortgage in the 1970's? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 14, 2012 Share Posted November 14, 2012 Wage inflation? I started my own business soon after we bought, so yes. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 (edited) Got to ask why, during all those property porn years, no one "snapped this up". Something bad happen there? old dear just went into a home after 30 years in the place and now the family want to sell. Quite a few come up due to deaths, is quite an age to the owners of bigger/better places around here. Sadly, the EA's have taken to open house days and sealed bids for most of them. Quite a few have been bought by builders and knocked down for the plot. One good sized 4 bed det with a good plot recently sold - builders knocked it down and are currently squeezing 4 houses on it Edited November 14, 2012 by Number79 Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 14, 2012 Share Posted November 14, 2012 needed? I assume that you managed once she stopped working. When do you think was the last real time that it was more common that only the man had a propper job and his wage paid the mortgage and living? Probably around 1997? Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 14, 2012 Share Posted November 14, 2012 old dear just went into a home after 30 years in the place and now the family want to sell. Why no basic utilities? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 14, 2012 Share Posted November 14, 2012 You got a 2.5 times joint income mortgage in the 1970's? Yes, I checked with the wife who remembers these things, it was 1976, we had a good deposit though. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted November 14, 2012 Share Posted November 14, 2012 something often overlooked since the last generation is the effect of women entering the workplace - there is now a double income to be spent/required This is worth an hour of your time if you haven't watched it. Skip the 5-6 minute introduction and move to where Elizabeth Warren starts speaking. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 Why no basic utilities? No idea, they just seem to manage - the 90 year old I used to live next to was the same. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 14, 2012 Share Posted November 14, 2012 Yes, I checked with the wife who remembers these things, it was 1976, we had a good deposit though. I must admit I find that very hard to believe. I must have led a sheltered life. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 This is worth an hour of your time if you haven't watched it. Skip the 5-6 minute introduction and move to where Elizabeth Warren starts speaking. thanks, pretty much in line with my own understanding and research about this. The transfer of wealth and industry from west to east is now the real nail in our coffin Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 14, 2012 Share Posted November 14, 2012 Someone here with a 6 times joint income interest only mortgage complaining about Santander We are still unable to remortgage to another lender and I feel that we have been trapped by Santander and their unethical lending. http://forums.moneysavingexpert.com/showthread.php?t=3921811 Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted November 14, 2012 Share Posted November 14, 2012 I started my own business soon after we bought, so yes. 2005 Buy with 2.5 joint income 2008 Have a kid, not return to work 2012 Renting Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted November 14, 2012 Share Posted November 14, 2012 Someone here with a 6 times joint income interest only mortgage complaining about Santander What's the problem - 156K mortgage plus an extra 35K on top... but they claim to have done 40K of improvements.... so 156K value of house and 40K improvements is 196K spent on house.... and now they say it has been valued at 270K? Should be happy shouldn't they? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 14, 2012 Share Posted November 14, 2012 I must admit I find that very hard to believe. I must have led a sheltered life. It was the life insurance salesman wot done it. He got us the multiple we needed through his contacts at the building society. As it turned out I paid off the mortgage in under fifteen years and pocketed the proceeds of the endowment, good job too as if it had gone to full term the endowment policy would have been worthless. Quote Link to comment Share on other sites More sharing options...
Errol Posted November 14, 2012 Share Posted November 14, 2012 We are still unable to remortgage to another lender and I feel that we have been trapped by Santander and their unethical lending. Priceless. Totally priceless. Morons. Quote Link to comment Share on other sites More sharing options...
stu2006 Posted November 14, 2012 Share Posted November 14, 2012 Someone here with a 6 times joint income interest only mortgage complaining about Santander Pretty sure that they are of the minority. As far as a crash comes im pretty sure we have seen it already 2 years ago. I managed to land a 3 bed semi for 20% off original price,(Borderline repo) house next door but 2 went for 40k more than i paid in 2005-2006 and next door 20k in around 2009. I paid 80k it was originally on the market for 100k. in 2011..Im moving in with my girlfriend and have no intention of selling as rent demand is high in the area and will cover the mortgage (fixed at 5% until jan 14) and then some, had 3 offers already for renting but im still renovating till January..I suppose my point being there are plenty of people in good positions who do not need to sell Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 What's the problem - 156K mortgage plus an extra 35K on top... but they claim to have done 40K of improvements.... so 156K value of house and 40K improvements is 196K spent on house.... and now they say it has been valued at 270K? Should be happy shouldn't they? Quite. But with a joint income of 30k a year this was never going to end well. Time they quit their paper rounds and got propper jobs - or sell up. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 14, 2012 Share Posted November 14, 2012 Pretty sure that they are of the minority. As far as a crash comes im pretty sure we have seen it already 2 years ago. I managed to land a 3 bed semi for 20% off original price,(Borderline repo) house next door but 2 went for 40k more than i paid in 2005-2006 and next door 20k in around 2009. I paid 80k it was originally on the market for 100k. in 2011..Im moving in with my girlfriend and have no intention of selling as rent demand is high in the area and will cover the mortgage (fixed at 5% until jan 14) and then some, had 3 offers already for renting but im still renovating till January..I suppose my point being there are plenty of people in good positions who do not need to sell And plenty in good positions who do not need to buy . Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 14, 2012 Share Posted November 14, 2012 What's the problem - 156K mortgage plus an extra 35K on top... but they claim to have done 40K of improvements.... so 156K value of house and 40K improvements is 196K spent on house.... and now they say it has been valued at 270K? Should be happy shouldn't they? Well it states what the mortgage was for but not what they paid for the house and how much deposit they put down. If it was a 125% mortgage they are better off? Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 Pretty sure that they are of the minority. As far as a crash comes im pretty sure we have seen it already 2 years ago. I managed to land a 3 bed semi for 20% off original price,(Borderline repo) house next door but 2 went for 40k more than i paid in 2005-2006 and next door 20k in around 2009. I paid 80k it was originally on the market for 100k. in 2011..Im moving in with my girlfriend and have no intention of selling as rent demand is high in the area and will cover the mortgage (fixed at 5% until jan 14) and then some, had 3 offers already for renting but im still renovating till January..I suppose my point being there are plenty of people in good positions who do not need to sell agreed, late 2008/early 2009 was it. Qe, obumma back in, and the race of currencies to the bottom means no point waiting anymore - risk off, cash to assets. Plenty around here in no rush to sell, mostly older and mortgage free, valued by the ludicrous agent, content to leave on market for couple of years Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted November 14, 2012 Share Posted November 14, 2012 (edited) agreed, late 2008/early 2009 was it. Qe, obumma back in, and the race of currencies to the bottom means no point waiting anymore - risk off, cash to assets. Plenty around here in no rush to sell, mostly older and mortgage free, valued by the ludicrous agent, content to leave on market for couple of years I don't see a big collapse either, just a slow grind down - if they drop another 10% nominal over the next five or six years then I'll probably be happy to buy - that would be more than a 50% real terms drop from peak Edited November 14, 2012 by oldsport Quote Link to comment Share on other sites More sharing options...
LetsGetReadyToTumble Posted November 14, 2012 Share Posted November 14, 2012 I don't see a big collapse either, just a slow grind down - if they drop another 10% nominal over the next five or six years then I'll probably be happy to buy - that would be more than a 50% real terms drop from peak I give this thing another 6 months. QE is already becoming 'difficult' and without that, interest rates will go up. That will force house prices down, as well as cause all sorts of problems. You can only fiddle with the laws of free enterprise for so long, and a system based on so much debt is unsustainable. What's happening to house prices in Greece, BTW? I keep hearing about the collapse in Ireland and Spain, but not Greece. Quote Link to comment Share on other sites More sharing options...
Venger Posted November 14, 2012 Share Posted November 14, 2012 Pretty sure that they are of the minority. As far as a crash comes im pretty sure we have seen it already 2 years ago. I managed to land a 3 bed semi for 20% off original price,(Borderline repo) house next door but 2 went for 40k more than i paid in 2005-2006 and next door 20k in around 2009. I paid 80k it was originally on the market for 100k. in 2011..Im moving in with my girlfriend and have no intention of selling as rent demand is high in the area and will cover the mortgage (fixed at 5% until jan 14) and then some, had 3 offers already for renting but im still renovating till January..I suppose my point being there are plenty of people in good positions who do not need to sell I'm hearing stories of homeowners asking to borrow money from neighbours. A relative was telling me how she was recently approached by a homeowner who lives at the top of the road to borrow £100 for a short term loan. Her answer was no. Got enough on paying their own bills. We'd already heard he'd borrowed from other neighbours, and thought they'd been too generous and trusting to have lent him bigger sums without any paperwork, but had no idea he'd then also come and then ask them for money. They barely know him. Someone in financial difficulty, their hours cut and some years away from retirement, hogging a large house which should go to a family, and which an EA might put on market at £700K to begin with. The people in good positions who don't need to sell have limited affect on the market. It only requires a certain level of increase in the number of people who experience more of a need to sell, with not enough buyers willing or able to afford their asking prices, where things get interesting for values. A crash can happen even with a majority of homeowners not requiring to sell. Quote Link to comment Share on other sites More sharing options...
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