Refused A Mortgage Under The 'new Rules'

[19 year mortgage 8itch]

That does surprise me. I'm sure HSBC offer pretty much the same deal. I got a mortgage (also a lifetime tracker) with them 3 years ago, and I'm a part-time, self-employed single dad!

HSBC? <insert drug dealer joke>

[TheCountOfNowhere]

2.29% repayment. : Thanks for stealing our savings

[Ah-so]

First direct - life time tracker product 1.79% above Carney/Merv/BOE/Bernankes rate.

unsaleable miniature house - Very amusing

You will get a mortgage, perhaps you need to shop around.

The HSBC mortgages tend to have massive fees attached, which helps subsidise a great introductory rate.

[Bloo Loo]

2.29% repayment. : Thanks for stealing our savings

no savings required. Banks could float off into space..they dont need us, except to provide them with goods to consume with their made up money gains.

[TheCountOfNowhere]

no savings required. Banks could float off into space..they dont need us, except to provide them with goods to consume with their made up money gains.

That would appear true when the government are giving the banks money:

"from http://www.marketoracle.co.uk/Article7475.html"

I see a problem with the current banks business model.....

[snowflux]

You will get a mortgage, perhaps you need to shop around.

The HSBC mortgages tend to have massive fees attached, which helps subsidise a great introductory rate.

Not necessarily. Mine's a lifetime tracker, base rate + 1.89%, no booking fee and no exit fee. HSBC are currently offering a similar deal at base rate + 1.99%.

[Wurzel Of Highbridge]

The deal I was applying for was:[/font][/size]

Life Tracker Repayment - Standard

Max LTV 65%

SVR 2.29% -

Overall cost 2.4% APR

Booking fee £0

Arrangement fee £499

Payment £384

I suspect like everything else in the UK only over 45's need apply.

Edited May 9, 2014 by Wurzel Of Highbridge

[FreeFall]

Not necessarily. Mine's a lifetime tracker, base rate + 1.89%, no booking fee and no exit fee. HSBC are currently offering a similar deal at base rate + 1.99%.

Yep - I have an HSBC liftime tracker as well - 1.69% above base rate, 99 arrangement fee. It's all about timing to avoid the big fees - apply when they're having a "sale". Took out mortgage 3 years ago - have since paid > 90% of it off Not much profit out of me...

[TheCountOfNowhere]

Yep - I have an HSBC liftime tracker as well - 1.69% above base rate, 99 arrangement fee. It's all about timing to avoid the big fees - apply when they're having a "sale". Took out mortgage 3 years ago - have since paid > 90% of it off Not much profit out of me...

Get your debt here, get your debt here...sale now on.

"Not much profit out of me..."

Or if you''ve paid 30% too much for a house with magic made up q.e. printed money then they probably see it differently.

Plenty of profit for some mud bricks and a patch of grass.

have they stopped teaching arithmetic at primary school ?

Edited May 9, 2014 by TheCountOfNowhere

[InlikeFlynn]

Wurzel,

With such a large deposit and relatively low LTV, I'm really surprised by HSBCs decision.

Two possibilities come to mind

1. HSBC are not looking to expand lending much or have some strange decision making tree that does not like your particular situation.

2. You have an "issue" on your credit file which you are not aware of. E.g, you're not on the electoral roll, or there's some error on your file.

You've probably done so already, but you can and should easily check out your credit records. You can do this for a small fee. The best way round point 1. is to go to another lender: it might be worth using a mortgage broker who can find a suitable lender without lots of repeated applications and time wasting. My brother used "Which?" brokers and seemed happy with them but he did have to pay a bit for their services.

[Wurzel Of Highbridge]

Or if you''ve paid 30% too much for a house with magic made up q.e. printed money then they probably see it differently.

And the alternative is...... Rent for 3 years and buy in cash? Is this cheaper?

[Wurzel Of Highbridge]

Hoping this stupid *****ing government bring in this right-to-build scheme fairly quickly, then I can take a look at that in 6 months time. Like most things the government 'talks' about does not materialise if it's for the benefit of young people.

[FreeFall]

Get your debt here, get your debt here...sale now on.

"Not much profit out of me..."

Or if you''ve paid 30% too much for a house with magic made up q.e. printed money then they probably see it differently.

Plenty of profit for some mud bricks and a patch of grass.

have they stopped teaching arithmetic at primary school ?

Looks like primary maths isn't the best. Mortgage on a 3 bed semi with large garden = £600pcm. Rent on a 1 bed shoe box = £850 pcm. Quality of life with mortgae vastly higher than raising family in 1 bed flat.

Pay your money and make your choice - we did. We're now almost mortage free - when that happens we'll be avoiding £10k pa in rent. Think of alll the iPads we can buy then

[rh2409]

Well here's my anecdote:

Deposit £100k

Looking to borrow £100k @ 2.29% repayment.

Me £35k, her £17.5k

Mortgage refused on the grounds that the wife is still in her probationary period and it would be unaffordable on my salary.

Bit peed off, but if they won't lend to me they aren't going to be lending to anyone else either.

Complete and absolute nonsense. Joint income £52.5k, 50% deposit (i.e. £100k to put down), mortgage repayments would be sub £450pm (assuming 25 years and a reasonable rate). As long as your credit file is relatively clean, you are extremely mortgageable, even given the work history. Find a half competent mortgage broker and he'll sort you out in a shot. Don't listen to the HPC Cassandra's, if you want some stability in your living arrangements so you can start a family and you can buy a property that will be affordable for you, then that (not will house prices go up or down in x months/years) should be your priority.

Because a little bit of Everything is always Good...

http://www.itsarandomworld.com

[Bloo Loo]

Looks like primary maths isn't the best. Mortgage on a 3 bed semi with large garden = £600pcm. Rent on a 1 bed shoe box = £850 pcm. Quality of life with mortgae vastly higher than raising family in 1 bed flat.

Pay your money and make your choice - we did. We're now almost mortage free - when that happens we'll be avoiding £10k pa in rent. Think of alll the iPads we can buy then

these are all good points.

They fall apart when you move to 4 bedroom and buying today.

TBH, I have been thoroughly spoiled by renting...I lost a great house at the peak of the 1990s boom due to the fact that the subsequent bust meant my earnings dissappeared at the same time as housing costs went up.

My mistake then was renting the same design house, on the same estate for 1/3 of the mortgage costs.

[Bloo Loo]

Complete and absolute nonsense. Joint income £52.5k, 50% deposit (i.e. £100k to put down), mortgage repayments would be sub £450pm (assuming 25 years and a reasonable rate). As long as your credit file is relatively clean, you are extremely mortgageable, even given the work history. Find a half competent mortgage broker and he'll sort you out in a shot. Don't listen to the HPC Cassandra's, if you want some stability in your living arrangements so you can start a family and you can buy a property that will be affordable for you, then that (not will house prices go up or down in x months/years) should be your priority.

Because a little bit of Everything is always Good...

http://www.itsarandomworld.com

he should have bought last year...course, he might live up North, where your arguments dont stack up.

As for your assessment, you have no idea of what other committments the poster has..Maybe he has a large expensive car hobby, maybe he is in a trade the banks see as high risk, maybe his personal flossing advisor at £200 per month are an expense he really cant do without.

All questions on the new MMR...and ones you can only assume were answered in the ZERO range...you forget, your financial life does not start or stop midlife...you have a history, credit cards, hobbies and other billy dos you might insist on keeping.

[TheCountOfNowhere]

Looks like primary maths isn't the best. Mortgage on a 3 bed semi with large garden = £600pcm. Rent on a 1 bed shoe box = £850 pcm. Quality of life with mortgae vastly higher than raising family in 1 bed flat.

Pay your money and make your choice - we did. We're now almost mortage free - when that happens we'll be avoiding £10k pa in rent. Think of alll the iPads we can buy then

4 bed house with massive garden £850 PCM....mortgage on said house £1800.....No maintenance, no massive tax to buy it/move...freedom to get out this country at teh drop of a hat.

i'm paying my money and my choice seems better than yours. You pay the interest, i'll take it.

[rh2409]

he should have bought last year...course, he might live up North, where your arguments dont stack up.

As for your assessment, you have no idea of what other committments the poster has..Maybe he has a large expensive car hobby, maybe he is in a trade the banks see as high risk, maybe his personal flossing advisor at £200 per month are an expense he really cant do without.

All questions on the new MMR...and ones you can only assume were answered in the ZERO range...you forget, your financial life does not start or stop midlife...you have a history, credit cards, hobbies and other billy dos you might insist on keeping.

If you had read my post instead of reflexively spouting bile as soon as you come across someone not adopting HPC groupthink, you'd have seen that my post is based around an "all other things being equal" principle. If the facts in the OP are correct, if his credit record is relatively clean then given his 50% deposit and income then, even under the new rules and with his emplyment history, he is very mortgageable. He may have a very expensive hobby, as you say, but I think that's unlikely. It would appear to me that the only thing he's lacking is a competent mortgage broker. It may gall you that people can get mortgages and can buy property but I personally have no issue with that: if they can afford the repayments without stretching themselves and they're are looking for a home and not investment then why shouldn't they buy?

Because a little bit of Everything is always Good...

http://www.itsarandomworld.com

[TheCountOfNowhere]

If you had read my post instead of reflexively spouting bile as soon as you come across someone not adopting HPC groupthink

Errrrrrrrrr.....that's why we are on HPC....we all think roughly same....house prices ridiculously high...london mega bubble...government keeping the sham going for the bankers and their VI friends....corruption...lack of accountability in politics...mis-use of the publics money...abuse of the public....fraudulent bankers going unpunished...unprodutive middle men being rewarded...lack of wealth generation in the UK...no future for our famillies...housing market collapse inevitable.

You might want to be posting over on:

www.iamanestateagentw***ker.com

[TheCountOfNowhere]

Quality of life with mortgae vastly higher than raising family in 1 bed flat.

Sorry, I missed this....

Pure comedy gold...who writes this stuff for you.

[Bloo Loo]

If you had read my post instead of reflexively spouting bile as soon as you come across someone not adopting HPC groupthink, you'd have seen that my post is based around an "all other things being equal" principle. If the facts in the OP are correct, if his credit record is relatively clean then given his 50% deposit and income then, even under the new rules and with his emplyment history, he is very mortgageable. He may have a very expensive hobby, as you say, but I think that's unlikely. It would appear to me that the only thing he's lacking is a competent mortgage broker. It may gall you that people can get mortgages and can buy property but I personally have no issue with that: if they can afford the repayments without stretching themselves and they're are looking for a home and not investment then why shouldn't they buy?

Because a little bit of Everything is always Good...

http://www.itsarandomworld.com

Bile?

You are making assumptions, as I pointed out, and justifying them "all things being equal".

I think I see a defensive response. Admit it, you guessed and made assertions based on the answer you want. I wasnt condemning house purchase, the poster says he was refused, but you said he shouldnt have been.

Im not the one spouting nonsense.

It is possible the OP is spouting nonsense, that the post is to encourage the readership.

You read bile in a reasoned response.

Lets look at your assumptions to justify your view:

If you had read my post instead of reflexively spouting bile as soon as you come across someone not adopting HPC groupthink, you'd have seen that my post is based around an "all other things being equal" principle. If the facts in the OP are correct, if his credit record is relatively clean then given his 50% deposit and income then, even under the new rules and with his emplyment history, he is very mortgageable. He may have a very expensive hobby, as you say, but I think that's unlikely. It would appear to me that the only thing he's lacking is a competent mortgage broker. It may gall you that people can get mortgages and can buy property but I personally have no issue with that: if they can afford the repayments without stretching themselves and they're are looking for a home and not investment then why shouldn't they buy?

Clearly, the bank, didnt like some of those issues...

And a broker, having to cover those issues, may well have to change the slant of the issues on an application to the same bank. Sort of LIE on the application, sort of thing?

Edited May 9, 2014 by Bloo Loo

[TheCountOfNowhere]

Bile?

You are making assumptions, as I pointed out, and justifying them "all things being equal".

I think I see a defensive response. Admit it, you guessed and made assertions based on the answer you want. I wasnt condemning house purchase, the poster says he was refused, but you said he shouldnt have been.

Im not the one spouting nonsense.

It is possible the OP is spouting nonsense, that the post is to encourage the readership.

You read bile in a reasoned response.

He read bile...I read "estate agent w***er".

Are the scared little lambs posting again ?

[FreeFall]

4 bed house with massive garden £850 PCM....mortgage on said house £1800.....No maintenance, no massive tax to buy it/move...freedom to get out this country at teh drop of a hat.

i'm paying my money and my choice seems better than yours. You pay the interest, i'll take it.

Rent on the 4 bed detached next door but 2 to me is over £2k per month - different areas, different drivers. I bought a run down heap and did it up - hence why relatively cheap.

We'll have to agree to disagree on which is better - you paying £850 pcm, me paying nothing (soon) doesn't seem like you have the better deal to me. I can't be evicted with 2 months notice, if something breaks I don't have to wait for someone else to fix it, etc. All down to perspective I guess.

[Ash4781]

Complete and absolute nonsense. Joint income £52.5k, 50% deposit (i.e. £100k to put down), mortgage repayments would be sub £450pm (assuming 25 years and a reasonable rate). As long as your credit file is relatively clean, you are extremely mortgageable, even given the work history. Find a half competent mortgage broker and he'll sort you out in a shot. Don't listen to the HPC Cassandra's, if you want some stability in your living arrangements so you can start a family and you can buy a property that will be affordable for you, then that (not will house prices go up or down in x months/years) should be your priority.

Because a little bit of Everything is always Good...

http://www.itsarandomworld.com

Is this 450pcm for a 100k over twenty five years for repayment mortgage? I did some rough calcs and the rate came out as 1.5%.

[Wurzel Of Highbridge]

It is possible the OP is spouting nonsense, that the post is to encourage the readership.

I'm afraid this is not the case, all the facts and figures and story is true.

if his credit record is relatively clean

I have a good clean credit history, two credit cards thta are seldom used and paid off every month.

emplyment history,

I'm out of the probationary period, from what I understand is what maters.

very mortgageable. He may have a very expensive hobby, as you say, but I think that's unlikely.

No expensive hobbies as I spend most of my time posting here. We do go out for dinner once per week £50 max, usually £20 down spoons.

All in all quite frugal HPC types overall, take our own sandwiched to work etc. No car loans, or oher credit.

Basically I am being told by HSBC/ First direct that my salary of £35k is not enought to support a £100k mortgage according to the new high stress test interest rates, if my wife didn't pass her probationary period at work. Bearing in mind I have dragged here all over the place (Kent, Ireland etc.) and she's also never been out of work for more than a few weeks.

Stress testing a mortgage of £100k at 6% gives a repayment of £644 per month against a take home of aprox. £2100 - so first direct are saying that it's not possible for two people to live on about £1400 per month.