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Sancho Panza

Borrowers Take On More Debt To Buy Property

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Telegraph 19/11/13

'Home buyers are taking out bigger mortgages to buy property as more products become available for those with small deposits. The average loan-to-value (LTV) on properties purchased in October stood at 72.2pc, according to the Mortgage Advice Bureau, a broker. This was a huge 3.3 percentage points higher than the 68.9pc registered in September.

It represented the highest reading since the company's records began in January 2009, indicating borrowers taking on larger debts as the property market returns to health.

The figures are in line with Government attempts to encourage lenders to offer 95pc mortgages through Help to Buy, which launched three months ahead of schedule in October.

While Royal Bank of Scotland and Lloyds Banking Group remain the only two lenders to offer Help to Buy products, other lenders have started offering 95pc mortgages outside the scheme, having pulled out in the aftermath of the 2008 credit crisis.

The Mortgage Advice Bureau said the total number of mortgages available to borrowers increased by 907 to 11,652 last month and two and three-year fixed rates and two-year tracker rates reached record lows.

Its National Mortgage Index showed borrowers responded to the improved conditions – applications to buy homes were up 59pc compared with October 2012.

The Index revealed the market is starting to open up to people on lower incomes as the average salary of buyers fell to a six month low of £38,887.

September 2013

October 2013

Average buyer salary

£39,803

£38,887

Average buyer LTV

68.9%

72.2%

Brian Murphy, head of lending at MAB, said: “The Help to Buy mortgage guarantee is still in its infancy and it’s reasonable to assume the best deals for consumers are yet to come. What these figures show is that the scheme’s galvanising effects are not limited to lenders who are directly participating at this stage.

“Spreading positivity about property purchases has visibly increased demand and spurred lenders across the market into bidding to win over consumers. It is an encouraging sign that we are already seeing a change in the typical profile of mortgage applicants.”'

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The Index revealed the market is starting to open up to people on lower incomes as the average salary of buyers fell to a six month low of £38,887.

They don't make clear if this is joint income or single?

Regardless, you can't buy didly squat with that in London.

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The Index revealed the market is starting to open up to people on lower incomes as the average salary of buyers fell to a six month low of £38,887.

They don't make clear if this is joint income or single?

Regardless, you can't buy didly squat with that in London.

Outside London, in any reasonably desirable area, it buys nothing, or very little either.

Was researching some dentist info the other day, for a friend who wants some work done. Chanced upon this...

kcn5.jpg

http://idhgroup.co.uk/

Dental Foundation Year 1 (DF1) graduates working as vocational dental practitioners (VDPs) start on £30,132 a year.

Most dentists are self-employed contractors, mixing NHS with private work, and earn between £50,000 and £110,000 annually, while wholly private dentists can earn £140,000+.

http://www.prospects.ac.uk/dentist_salary.htm

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The Index revealed the market is starting to open up to people on lower incomes as the average salary of buyers fell to a six month low of £38,887.

They don't make clear if this is joint income or single?

Regardless, you can't buy didly squat with that in London.

The market is opening up to sub-prime borrowers.

Nothing to see here....move along.

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Ha ha, did I really hear on radio 4 this morning that low income persons with a bad credit history having no access to cheap credit was the problem?

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