Jump to content
House Price Crash Forum

Recommended Posts

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.

Renting = low risk right now = better

Buying is a mugs game now.

Link to post
Share on other sites
  • Replies 179
  • Created
  • Last Reply

Top Posters In This Topic

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

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

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

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.

I am tempted to go to a mortgage seller to see if my situation is similar. It is HSBC though!

Link to post
Share on other sites

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

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

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

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.

remember, my post was not to you, it was about a troll? rebuttment.

Whilst we all gain an impression on the integrity of regular posters, and for me, I beleive what you post, it is entirely possible the impression is wrong.

What we need to do as a community, is to read the anecdotes, do our own research, and draw up a personal conclusion. If questions raised are bile, then there really is no point in making references

However, if your case is typical accross the branded banks, and a troller says we must go the route of LIAR LOANS via brokers, so rife in the early 2000's,and this DOES start occuring, this responsibility buck pass is going to hurt people again..This time the starting point is near zero base rates, rather than 5% or so at the start of the LIAR LOAN era.

As other posters have said, there is nowhere to go to kerb the recession, and there is nowhere to go to kerb high mortgage arrears issues at the slightest rate rise.

Link to post
Share on other sites

remember, my post was not to you, it was about a troll? rebuttment.

Whilst we all gain an impression on the integrity of regular posters, and for me, I beleive what you post, it is entirely possible the impression is wrong.

What we need to do as a community, is to read the anecdotes, do our own research, and draw up a personal conclusion. If questions raised are bile, then there really is no point in making references

However, if your case is typical accross the branded banks, and a troller says we must go the route of LIAR LOANS via brokers, so rife in the early 2000's,and this DOES start occuring, this responsibility buck pass is going to hurt people again..This time the starting point is near zero base rates, rather than 5% or so at the start of the LIAR LOAN era.

As other posters have said, there is nowhere to go to kerb the recession, and there is nowhere to go to kerb high mortgage arrears issues at the slightest rate rise.

Well said that man.

+10.2

Link to post
Share on other sites

I shan't be going to a broker so they can lie on my behalf. If the bank doesn't want to lend then that is that as far as I am concerned. If I can't get a mrtgage in principal, then there won't be many who can.

Did you not get the memo earlier? This is about the lender, not you.

Try a different lender and see what answer you get. Haliwide would bite your hand off, I don't doubt.

Link to post
Share on other sites

I shan't be going to a broker so they can lie on my behalf. If the bank doesn't want to lend then that is that as far as I am concerned. If I can't get a mrtgage in principal, then there won't be many who can.

This is the crux....but when the 2003 BBC program was broadcast ( see Eric) the reporter had the EXACT same issues...Official bank policy accross the board was 3 times main income PLUS 1 times the second. No-one could buy in the London area on the local wages..the films showed that 9/10 of Agents recommended a broker who encouraged LYING on the application..even to the self same banks.

Is this where we are back to?

Link to post
Share on other sites

I shan't be going to a broker so they can lie on my behalf. If the bank doesn't want to lend then that is that as far as I am concerned. If I can't get a mrtgage in principal, then there won't be many who can.

Did you not get the memo earlier? This is about the lender, not you.

Try a different lender and see what answer you get. Haliwide would bite your hand off, I don't doubt.

Link to post
Share on other sites

I shan't be going to a broker so they can lie on my behalf. If the bank doesn't want to lend then that is that as far as I am concerned. If I can't get a mrtgage in principal, then there won't be many who can.

It then follows that....you will have to pay a higher rate....borrow less which means that offers will be lower...prices paid will drop...there will be no further london mega bubble.

That's if MMR is enforced....i'm 50/50 on whether it will. if the government is relying on high house prices to generate more and more tax then I guess they rules will be relaxed...if the bankers want lower prices so they can get rid of the dead wood that they are no longer making a profit from then prices will not plummet.

My question...if you needed to borrow but wont try elsewhere why is that ?

Do you need the ridiculously low 2.29% APR to afford to over pay for a house ?

High house prices or high interest rates the banks are snaring a huge chunk of your future earnings either way.

You'll be working for them and the government for all your life.

Link to post
Share on other sites

I shan't be going to a broker so they can lie on my behalf. If the bank doesn't want to lend then that is that as far as I am concerned. If I can't get a mrtgage in principal, then there won't be many who can.

Your circumstances aren't as settled as other applicants might be. Just back from Ireland having been made redundant there and only just over 3 months in your current job.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=180369&page=5

You might have just applied to this one bank too early.

Link to post
Share on other sites

My question...if you needed to borrow but wont try elsewhere why is that ?

Do you need the ridiculously low 2.29% APR to afford to over pay for a house ?

I would think that all the major lenders criteria is fairly similar and don't fancy blotting my credit history with loads of failed mortgage applications.

I would consider Barclays 10yr fixed @ 3.89% if we were looking to stretch our finances and borrow a larger amount like £150k. A 10 year fix would give me security against the repayments rising and the mortgage becoming unaffordable.

As it stands the £100k is unaffordable, so what is the point applying elseware. I am going to wait 6 months until the wife has passed her probationary period at work or MMR has caused the market to collapse. We already have two months of price falls under way.

Link to post
Share on other sites

I would think that all the major lenders criteria is fairly similar and don't fancy blotting my credit history with loads of failed mortgage applications.

I would consider Barclays 10yr fixed @ 3.89% if we were looking to stretch our finances and borrow a larger amount like £150k. A 10 year fix would give me security against the repayments rising and the mortgage becoming unaffordable.

As it stands the £100k is unaffordable, so what is the point applying elseware. I am going to wait 6 months until the wife has passed her probationary period at work or MMR has caused the market to collapse. We already have two months of price falls under way.

The criteria can vary massively between lenders. The solution can be to go via a mortgage broker who will be able to give you an idea who would lend based on your circumstances before you even put in an application.

Link to post
Share on other sites

Just entered details into the Coventry building society calc with mmr additions. On 30k with my commitments will lend a maximum of 105k. Ok so previously they would have lent 130k. So I expect mortgage approvals to continue to fall. Sellers need to wake up though. I imagine the media might pick this all up in a few months when hpi rapidly slows Imo.

Link to post
Share on other sites

I would think that all the major lenders criteria is fairly similar and don't fancy blotting my credit history with loads of failed mortgage applications.

I would consider Barclays 10yr fixed @ 3.89% if we were looking to stretch our finances and borrow a larger amount like £150k. A 10 year fix would give me security against the repayments rising and the mortgage becoming unaffordable.

As it stands the £100k is unaffordable, so what is the point applying elseware. I am going to wait 6 months until the wife has passed her probationary period at work or MMR has caused the market to collapse. We already have two months of price falls under way.

It's not the mortgage that's unaffordable...it's the house.

OFFER LESS.

Link to post
Share on other sites

I shan't be going to a broker so they can lie on my behalf. If the bank doesn't want to lend then that is that as far as I am concerned. If I can't get a mrtgage in principal, then there won't be many who can.

My sister went to a bank last week, so post MMR, looking at getting a mortgage in principal with her partner. Her salary late 30s, his late 20s. The bank gave them a MIP up to 320k property (I think it would have to be LTV 90% based on what savings I think they have). A such dont think you can blanket apply your decision to all institutions and people out think a mortgage broker would have to lie on your behalf.

Hopefully I'll convince them not to apply and to carry on renting instead.

Edited by terryturbojr
Link to post
Share on other sites

Renting = low risk right now = better

Buying is a mugs game now.

Renting = low risk right now = better

Buying is a mugs game now.

You keep making these posts talking about how bad it is to buy now, and posts insulting people for talking of buying.... but you yourself are looking to buy at the moment, ive seen posts of yours which make that clear.

Link to post
Share on other sites

My sister went to a bank last week, so post MMR, looking at getting a mortgage in principal with her partner. Her salary late 30s, his late 20s. The bank gave them a MIP up to 320k property (I think it would have to be LTV 90% based on what savings I think they have). A such dont think you can blanket apply your decision to all institutions and people out think a mortgage broker would have to lie on your behalf.

Hopefully I'll convince them not to apply and to carry on renting instead.

so 40K x 4 = 280K.

sounds almost sensible...except maybe the guy will have to have the kids.

Link to post
Share on other sites

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.

Interesting anecdote. Sounds eminently affordable and low risk to the lender bearing in mind the 50% deposit. Perhaps they're stress testing against you having kids soon, and potential tightening of tax credits after the next election?

Link to post
Share on other sites

Interesting anecdote. Sounds eminently affordable and low risk to the lender bearing in mind the 50% deposit. Perhaps they're stress testing against you having kids soon, and potential tightening of tax credits after the next election?

Maybe it's made up ?

Link to post
Share on other sites

you ok mate?

No, I think I'm going to die laughing.

Either you just made that up or you have gifted the banks £80k of your ( or your parents ) money....either way it's hilarious.

Now please tell me, why does someone that's just bought a house with a massive mortgage come on to HPC....is it to tell us we are all wrong...to get validation for your actions....or are you maybe just making it to annoy people because you have relaised what a mess you are in and are trying to put down anyone who speaks about against the magic free money making housing pyramid scheme ?

please, enlighten us all.

P.S. Im not you ****ing mate, understand.

Edited by TheCountOfNowhere
Link to post
Share on other sites

No, I think I'm going to die laughing.

Either you just made that up or you have gifted the banks £80k of your ( or your parents ) money....either way it's hilarious.

Now please tell me, down does someone that's just bought a house with a massive mortgage come on to HPC....is it to tell us we are all wrong...to get validation for your actions....or are you maybe just making it to annoy people because you have relaised what a mess you are in and are trying to put down anyone who speaks about against the magic free money making housing pyramid scheme ?

please, enlighten us all.

P.S. Im not you ****ing mate.

My 80k came primarily from money i made selling my last house. I then rented for 2 years waiting for prices to come down. This happened in the North West so i managed to buy a house that once got sold for 260 for 225k.

I no longer have to pay my landlord £700/month for a 3 bed semi in an ok area. Instead i can live in a 4 bed house with a lovely garden and huge room sizes for the sum of £657/month.

Good luck waiting for the crash in your area.....i hope it comes soon for you mate :)

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 415 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.