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bring_it_on

Getting A Little Worried Perhaps?

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A colleague of mine has had a mortgage in principal agreed with Northern Rock for ages. His total allowance at 125% LTV is about £204k, this is on a £38k salary!! Gave up trying to talk him out of buying anywhere in this way a long time ago. The property that he has been forced to pull out of by Northern Rock is an ex LA two bed apartment in Greenwich.

Northern Rock are pretty reluctant to lend when it comes to ex LA. Possibly due to the risk factor on top of lending such high multiples. However the surveyor who did the valuation had phoned him on Thursday saying Northern Rock would not let the purchase go through because the entrance to the property was open to the elements and therefore was a possible fire hazzard? Only if the corridor outside was glazed would they allow it. Which to me seems more of a fire hazzard than without!

The surveyor even said he thought this was strange as nowhere on the list he had did it say anything about this not being allowed and he had even valued flats in this block for Northern Rock in the past and they had gone through without any problems. He also said it was all very close but in the end they had said NO! The broker even said he was going to try and get his fee's back as they had said no for a reason that wasn't on their list of requirements.

Just thought i'd share this with you guys. Oh and my colleague also told me on Friday that prices were going up again because he had read it in the newspaper and I should spend my hard earned deposit now before they go up anymore. :huh:

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A colleague of mine has had a mortgage in principal agreed with Northern Rock for ages. His total allowance at 125% LTV is about £204k, this is on a £38k salary!! Gave up trying to talk him out of buying anywhere in this way a long time ago. The property that he has been forced to pull out of by Northern Rock is an ex LA two bed apartment in Greenwich.

Northern Rock are pretty reluctant to lend when it comes to ex LA. Possibly due to the risk factor on top of lending such high multiples. However the surveyor who did the valuation had phoned him on Thursday saying Northern Rock would not let the purchase go through because the entrance to the property was open to the elements and therefore was a possible fire hazzard? Only if the corridor outside was glazed would they allow it. Which to me seems more of a fire hazzard than without!

The surveyor even said he thought this was strange as nowhere on the list he had did it say anything about this not being allowed and he had even valued flats in this block for Northern Rock in the past and they had gone through without any problems. He also said it was all very close but in the end they had said NO! The broker even said he was going to try and get his fee's back as they had said no for a reason that wasn't on their list of requirements.

Just thought i'd share this with you guys. Oh and my colleague also told me on Friday that prices were going up again because he had read it in the newspaper and I should spend my hard earned deposit now before they go up anymore. :huh:

your colleague deserves everything coming to him.....

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Don't be nasty. But have you read about my dad? :o

http://www.housepricecrash.co.uk/forum/ind...showtopic=18405

Yeah I know he deserves everything that is coming to him. If I was to tell you that £184k was for the flat and the rest of the money is going to pay off his CC bills what would you think?

I was also reading the thread before about your dad. I hope you manage to talk him round a bit but sometimes the more you try and tell people who have been brainwashed the more they seem to take great delight in shoving your words back down your throat everytime they read or see a bit of bullish media spin. I have given up with it and just keep my thoughts to myself these days. Unless they really wind me up of course in which case I let rip and pull them to pieces.

With this guy though I gave up a while ago. Sometimes people just have to learn the hard way. He's 35 and spent the whole time when prices were rising borrowing on gadgets and cars. Now once the bubble looks like it is about to deflate he chooses to buy and spend 25 years paying off all the crap he bought during the boom times.

I'm from Manchester originally and my parents are still up there. Some of the things I have seen and heard when up on visits the last couple of years defies belief. Prices up there on new builds are as high or in some cases higher per sq ft than where I am in London. Manchester has boomed economically since I left 8 years ago. It's hard to recognise the place to be honest. The bottom line though up there is that the salaries my friends earn will not sustain prices as they are. I feel Manchester will be pretty hard hit when IR's start their upward path.

Can you not send your dad a few links to google news on how world interest rates are now set to rise. Then ask him to work out his yield and predicted future capital gains on rates even 1 or 2 % higher than they are now. You never know it may help once he see's the figures won't add up.

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  • 301 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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