spyguy Posted July 4, 2014 Share Posted July 4, 2014 Mumsnet is always good for a quick sample of the state of the market. One interesting post: http://www.mumsnet.com/Talk/property/2121952-Applying-for-mortgage-DH-too-old-for-25-year-mortgage On a side note, you can lots of fun with the new HSBC mortgage calculators. I was putting in real life examples of couples I know - mid 30s - salaries, debt. The max mortgage the average person I know can get is 60K. Quote Link to comment Share on other sites More sharing options...
LiveinHope Posted July 4, 2014 Share Posted July 4, 2014 (edited) Mumsnet is always good for a quick sample of the state of the market. One interesting post: http://www.mumsnet.com/Talk/property/2121952-Applying-for-mortgage-DH-too-old-for-25-year-mortgage On a side note, you can lots of fun with the new HSBC mortgage calculators. I was putting in real life examples of couples I know - mid 30s - salaries, debt. The max mortgage the average person I know can get is 60K. Why would anyone seek to commit themselves to a debt that requires working until they are 70 ? So, you reach 70 and finally retire, and say "honey, these bricks are ours". and then drop dead. When will people stand back and realise ? Edited July 4, 2014 by LiveinHope Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted July 4, 2014 Share Posted July 4, 2014 Why would anyone seek to commit themselves to a debt that requires working until they are 70 ? So, you reach 70 and finally retire, and say "honey, these bricks are ours". and then drop dead. When will people stand back and realise ? Direct quote: I think that if you are expected to work to 70,you should reap some blummin benefits ! It's a grim enough prospect, as it is ! No...borrowing even more money is not a benefit.. Quote Link to comment Share on other sites More sharing options...
Limon Posted July 4, 2014 Share Posted July 4, 2014 On a side note, you can lots of fun with the new HSBC mortgage calculators. I was putting in real life examples of couples I know - mid 30s - salaries, debt. The max mortgage the average person I know can get is 60K. For a couple in the south-west who are both on the average salary of £26k with no credit card debt, a deposit of half a year's income, and £600/month in council tax payments/bills, it says they'd be willing to lend up to £234k... Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted July 4, 2014 Share Posted July 4, 2014 Direct quote: I think that if you are expected to work to 70,you should reap some blummin benefits ! It's a grim enough prospect, as it is ! No...borrowing even more money is not a benefit.. Debt = wealth, slavery = freedom etc. Sounds like DH has had a lucky escape to me. I doubt very few 45-50 year olds will still be in the work place and earning a decent wedge by the time they are 70. Or perhaps the poster can trade him in for a younger model capable of servicing a longer and larger mortgage. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted July 4, 2014 Share Posted July 4, 2014 Reap the whirlwind more like. "Fill yer boots". Quote Link to comment Share on other sites More sharing options...
LiveinHope Posted July 4, 2014 Share Posted July 4, 2014 Debt = wealth, slavery = freedom etc. Sounds like DH has had a lucky escape to me. I doubt very few 45-50 year olds will still be in the work place and earning a decent wedge by the time they are 70. Or perhaps the poster can trade him in for a younger model capable of servicing a longer and larger mortgage. I would hope they aren't, but manual labour aside, I see more and more 65+ who are not retiring even though they have state and final salary pensions that sum to more than new entrants would earn. The reason is they are so up to their neck in their debts - their cost of retiring is so high. This has ramifications all the way down the food chain. Quote Link to comment Share on other sites More sharing options...
LiveinHope Posted July 4, 2014 Share Posted July 4, 2014 (edited) For a couple in the south-west who are both on the average salary of £26k with no credit card debt, a deposit of half a year's income, and £600/month in council tax payments/bills, it says they'd be willing to lend up to £234k... The 2 bed terraced housing allocated as 'affordable' on the new build Taylor Wimpey estate in a S Devon Village near me was priced at £295k. So with a deposit and HTB - a price match - yeh ! Everyone's a winner. Prices went up to £475k https://www.taylorwimpey.co.uk/find-your-home/england/devon/yealmpton/kitley-place Edited July 4, 2014 by LiveinHope Quote Link to comment Share on other sites More sharing options...
spyguy Posted July 4, 2014 Author Share Posted July 4, 2014 For a couple in the south-west who are both on the average salary of £26k with no credit card debt, a deposit of half a year's income, and £600/month in council tax payments/bills, it says they'd be willing to lend up to £234k... I was using real people, not fantasy made up people that are needed to make the figures work. Bloke: 26K Woman: 10K -parttime to fit in with the kids. Kids. Most couples have kids, or are planning to have kids. Put on 10K of debt - car loans, personal loan. Put in 10K of deposit - this is a lot of money for someone on the average income. Its daft not taking into accounts kids. 90% of people get shacked up and put at least one kid out. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted July 4, 2014 Share Posted July 4, 2014 The HSBC mortgage calculator says I could borrow £260k, but first direct wouldn't lend £100k against £35k salary ?? Quote Link to comment Share on other sites More sharing options...
katchytitle Posted July 4, 2014 Share Posted July 4, 2014 I was using real people, not fantasy made up people that are needed to make the figures work. Bloke: 26K Woman: 10K -parttime to fit in with the kids. Kids. Most couples have kids, or are planning to have kids. Put on 10K of debt - car loans, personal loan. Put in 10K of deposit - this is a lot of money for someone on the average income. Its daft not taking into accounts kids. 90% of people get shacked up and put at least one kid out. Actually I think the stats don't represent that 90% figure. Its actually a lot smaller. People often only see the standard of life in their immediate surroundings and consider this the norm. For instance, people in west london see Saudi arabians arrive every summer with super-cars flown in for 3 months and probably don't realise that this is just normal for a vast majority of the royal family's many descendants. There are plenty of people and co-habiting couples who don't have kids. I agree that it should be taken into account for a mortgage but the array of different types of family and privacy laws makes it difficult to ask the question. In any case, the system will be gamed by humans. If the choice is to have a house and say you won't have children or not have a mortgage and say you might have children you can see what people will do. Especially when there are no consequences to lying. From the ONS website: In 2012 there were 18.2 million families in the UK. Of these, 12.2 million consisted of a married couple with or without children. The number of opposite sex cohabiting couple families has increased significantly, from 1.5 million in 1996 to 2.9 million in 2012. The number of dependent children living in opposite sex cohabiting couple families doubled from 0.9 million to 1.8 million over the same period. In 2012, 38 per cent of married couple families had dependent children, compared with 39 per cent of opposite sex cohabiting couple families. There were nearly 2.0 million lone parents with dependent children in the UK in 2012, a figure which has grown steadily but significantly from 1.6 million in 1996. There were 26.4 million households in the UK in 2012. Of these, 29 per cent consisted of only one person and almost 20 per cent consisted of four or more people. Quote Link to comment Share on other sites More sharing options...
katchytitle Posted July 4, 2014 Share Posted July 4, 2014 (edited) The HSBC mortgage calculator says I could borrow £260k, but first direct wouldn't lend £100k against £35k salary ?? The calculators on the website have very basic rule engines. Additionally, first direct and HSBC, although the same bank are run as two different brands. First Direct seems to be far more prudent on its lending criteria, probably because they only want high quality mortgage customers who can subsequently be cross sold more FD products and the lower default rates pay for the UK call centres and good customer service. HSBC is more a pure volume play for the masses, make them use cheap machines to get their money and provide branches for small businesses to deposit cash. The day small businesses don't use money will be the day all branches close. There's just no reason to service the public this way from a bank's perspective. Edited July 4, 2014 by katchytitle Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted July 4, 2014 Share Posted July 4, 2014 from the MN comments: The UK property market is underpinned with nothing but lies and half truths. Easy credit has pushed up prices, not population growth. How do i know? Well, the population didn't shrink between 2008 and 2010, but property prices did. It didn't suddenly grow last year, as Help to Buy was introduced. But property prices did.Seriously, don't buy. A big crash is coming. Quote Link to comment Share on other sites More sharing options...
blobloblob Posted July 4, 2014 Share Posted July 4, 2014 Own up. Who's Jamie1981? Quote Link to comment Share on other sites More sharing options...
LC1 Posted July 4, 2014 Share Posted July 4, 2014 Own up. Who's Jamie1981? Haha, reality doesn't often go down too well over there. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted July 4, 2014 Share Posted July 4, 2014 Own up. Who's Jamie1981? My new best friend! Quote Link to comment Share on other sites More sharing options...
Guest Posted July 4, 2014 Share Posted July 4, 2014 The HSBC mortgage calculator says I could borrow £260k, but first direct wouldn't lend £100k against £35k salary ?? I tried the HSBC Calculator and it would lend me just under 3 x joint salary. Impressively cautious! Quote Link to comment Share on other sites More sharing options...
jabber Posted July 4, 2014 Share Posted July 4, 2014 The HSBC mortgage calculator says I could borrow £260k, but first direct wouldn't lend £100k against £35k salary ?? Hardly surprising with your work record at the time. Who would lend 100k to someone who had only just got a job after being made redundant and who's wife was still in the probationary period. Quote Link to comment Share on other sites More sharing options...
andygivenup Posted July 4, 2014 Share Posted July 4, 2014 My new best friend! I thought exactly the same when I read that post. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted July 4, 2014 Share Posted July 4, 2014 Direct quote: I think that if you are expected to work to 70,you should reap some blummin benefits ! It's a grim enough prospect, as it is ! No...borrowing even more money is not a benefit.. Its no wonder the banks do so well when idiots like that proliferate. Do they never stop and think "why is it those bricks and sliver of land cost under £100k and yet I have to pay 3 times that amount"? Would they pay £50k for a ford focus should the banks manage to do to the car market what they have done to housing? Quote Link to comment Share on other sites More sharing options...
Timak Posted July 4, 2014 Share Posted July 4, 2014 I tried the HSBC Calculator and it would lend me just under 3 x joint salary. Impressively cautious! Indeed I put in our actual salaries and a £100k deposit plus no debts at all (but 2 kids)and all it would lend was £165k. £265k is probably our current house value. The problem I have around here (Cambridge) is that barely anyone is buying with an owner-occupier mortgage. Last 4 houses around here to sell have all been immediately put up for rent (at terrible yields) Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted July 4, 2014 Share Posted July 4, 2014 from the MN comments: The UK property market is underpinned with nothing but lies and half truths. Easy credit has pushed up prices, not population growth. How do i know? Well, the population didn't shrink between 2008 and 2010, but property prices did. It didn't suddenly grow last year, as Help to Buy was introduced. But property prices did. Seriously, don't buy. A big crash is coming. Quote of the month, I like it. That is the sort of thing that needs to get put out on QT instead of the "shortage of houses" crap. Quote Link to comment Share on other sites More sharing options...
MattW Posted July 4, 2014 Share Posted July 4, 2014 Re: the link in the OP... When my parents bought their council house in 1982 or 83 my dad was in his late 40s. They had to go for the shorter circa 17 year option too so that it was paid off by the time he turned 65. Good to see a lender applying this rule now after years of lax lending rules. Quote Link to comment Share on other sites More sharing options...
stillill Posted July 4, 2014 Share Posted July 4, 2014 (edited) Hang on - I agree with the mumsnet poster. Look - first time buyers are like fking hens teeth. Many of us on here have waited and saved, only to get continually done up the wrong 'un. Now I'm nearly 40, do no own a property, and am looking leaving the UK shortly. But if I was planning on staying, I'd be watching for the next year or so before buying - but by then I'll be borderling too old for a standard mortgage? Some will say that 'oh at 40, you're earning loads, you can pay a 15 year mortgage', but wages are fked, and have been for 5+ years (when many of us should have been peaking, and banking decent salaries). We were not. The pension age is already beyond 65, lenders should rightly be adjusting their offerings to the facts that people are living longer. No one under 30 is buying houses, it's getting closer to 40 before many of us have mortgages. It's not the 1960s anymore. This is very grim. Edited July 4, 2014 by stillill Quote Link to comment Share on other sites More sharing options...
Limon Posted July 4, 2014 Share Posted July 4, 2014 No one under 30 is buying houses, it's getting closer to 40 before many of us have mortgages. Apparently, the average first time buyer today is 29 and earns £35k: http://www.thisismoney.co.uk/money/mortgageshome/article-2553023/Two-thirds-time-buyers-turn-Bank-Mum-Dad-deposit-help.html Quote Link to comment Share on other sites More sharing options...
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