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How Much Steak Do You Eat? New Rules & Declining Applications

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If the banks won't lend now, do you really think they'll be happier to lend after the HPC has shredded their loan books?

Or perhaps you think that you'll be able to buy in cash - I'd say that that makes you a prime candidate for a 'bail-in' direct theft to save the banks post HPC...

If I can buy a decent house and pay less in interest on the loan than my current rent, doesn't taking away my choice disadvantage me? I could and IMHO should be allowed to make my own silly choices, as long as I deal with the consequences myself. Applauding the rentiers for forcing us renters to keep renting forever seems illogical to me...

Yes; I've got a deposit and non-boom world income; they'll lend small amount I want, but my focus is on other family members in senior non-bubble jobs.

Also there's too much housing stock owned outright, earning the banks no money. Carney has hinted transactions a concern. Market needs a nudge, and banks will make money lending on lower house prices in volume. They get x3 principal at something like 6% mortgage rate.

Wilsons bought at auction in the last proper crash, and banks were happy to remortgage at higher prices for them. Debt is the problem but it's also the solution. Need to write load of new debt on lower house prices, and forcing complacent sellers out to market to cash in. MMR a big nudge towards that going forwards.

There are cash millionaires on the forum, some of whom earned it having never owned a property. I they can hold out to the direct theft risks, after so many years of indirect theft via excessive borrowing, so can I.

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Hello,

I've just spent a pointless afternoon on the line with Natwest, who after 9 years of perfectly paying off all credit cards/mortgage payments and loan repayments and passing the affordability test have told me "computer says no" for no reason. Apparently they have a system that will just throw up a block against you and not give a reason at all according to the chaps on the phone. The first of which told me to get my Equifax report (which turned out to be excellent) and Equifax told me Natwest didn't even run a call against me. So I was barred without a check into my credit anyway.

Have you just been paying off debt or have you also started saving a huge deposit?

And there's not just equifax to look at.

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Ouch@venger.

Well, I can't get an extra bedroom I need for an expanding family. Yes I am annoyed to be blocked when friends and relatives are able to move. I'm locked into where I live forever it seems like and that does have negative consequences.

What sort of mortgage - IO?

How logn have you had it?

Do you have credit cards, unsecured debts or kids?

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I have a friend, who I warned, has got herself into £600k of mortgage debt over two houses with a salary of 55k. I have no idea how she has managed to do that but I perhaps you're right! Lucky to be refused, will keep the kid in a drawer till things cool down.

Just before the new rules came in, days before infact. East London terrace to do up at £600k

They made their own decisions. A market can't crash until it's just about pulled in all of those who are able to buy. You can probably tell I won't be upset for them if and when this market turns, just as they expect to come away with a load of easy money on a flip/rental.

This market has defied us for a long time, always with new schemes coming along (Mortgage Rescue/Improved SMI, FLS/QE/Global QE,HTB,so nothing is certain, but banks tightening up what they'll lend to applicants is encouraging towards lower future prices.

Keep us informed of your own and your friend's position, as this market plays out, please.

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Salary 100k/deposit 100k/new house outside of london but commutable 300k - no cc debts pay in full each month/no loans/nuffink

You've answered some of the questions. Sorry.

Are you self employed?

What do you do?

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Salary 100k/deposit 100k/new house outside of london but commutable 300k - no cc debts pay in full each month/no loans/nuffink

Salary 100k/deposit 100k/new house outside of london but commutable 300k - no cc debts pay in full each month/no loans/nuffink

You said you wanted to port your mortgage - have you got some legacy deal at a silly rate that the bank wants you off? By blocking your increment they might be hoping you end up remortgaging the full amount with another bank in order to move.

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Tough luck victim.

Keep moaning and complaining you can't get the debt you deserve.

Don't be like that Venger. I want to see people being able to borrow as much as they want. Bubbly bubbly! It might not crash unless we can keep the exponential growth going! Wouldn't want the housing market just to flat line for 15 years! :P

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I have a friend, who I warned, has got herself into £600k of mortgage debt over two houses with a salary of 55k. I have no idea how she has managed to do that but I perhaps you're right! Lucky to be refused, will keep the kid in a drawer till things cool down.

Liar loan?

You might have some more luck (or is luck the wrong word! :P) going through a broker. Renting a bigger place could be a option but of course rents are currently very high in London too. So looks like you might have to sit tight, pay down your debt, save and pay cash for your next move!

I always wonder how much houses would be if everyone could only pay cash! Looks like we might find out! :P

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A market can't crash until it's just about pulled in all of those who are able to buy.

This housing market is comtrolled by the availability of credit. If then banks turn off the credit taps then the market has "pulled in all of those who are able to buy", if teh government and banks come up with more daft schemes then the supply "of those who are able to buy" wil never end and the market will keep going for eternity.

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Don't be like that Venger. I want to see people being able to borrow as much as they want. Bubbly bubbly! It might not crash unless we can keep the exponential growth going! Wouldn't want the housing market just to flat line for 15 years! :P

It's proven they will borrow crazy sums, unless they are stopped - and exponential growth.. well London has reflated way above 2006/07 peaks, so how much more of this price madness can you really take? Flat line from these prices? I don't entertain that thought.

We need more data, as stories like below don't have enough context by themselves, but it's a lot more encouraging now for non-owners/hopeful upsizers., toward future better value, than it has been for a long time,

Yesterday, 10:28 PM

just want to cry

We are relocating across country as husband has a new job. Moving from London where property is being snapped up. So put our place on the market and put in a speedy offer on our dream property. Accepted first offer from FTB, she pulled out. Second and third the same. It seems that because of the stupid market, people are trying their chances and putting offers in on everything they semi like. We NEED the asking price, which isn't unreasonable, because we are losing my salary and London weighting on husband's job. We would drop the price if we could. But no one has even made an offer at lower than asking, they just pull out before even exchanging solicitors details. It's a horrid situation :-(

http://forums.moneysavingexpert.com/showthread.php?t=5017625

same thread, different poster... looks like a market cracking up to me, all these different forces in play.

My comments are purely anecdotal, but we have had a close eye on our local market (SW London) since last summer when we bought a BTL and more so since march when we put ours on the market...

A lot of people we know who live locally and who I know from work are having problems selling and buying. From vendors who can't find anywhere to move to, gazumping, buyers who don't get their mortgage under MMR (us) and houses being significantly undervalued by surveyors (us again), no one is finding the process straightforward. And a surprising number of properties are going back on the market after being under offer (I check Rightmove daily!).

Things are not easy in the London market at the moment in my experience.

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Interesting times for the unmortgaged observer. MMR just being felt and expectation of rate rises over the next couple of years with a general election soon make these months the most interesting for a long time.

Fingers crossed some sanity will be allowed to return.

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You said you wanted to port your mortgage - have you got some legacy deal at a silly rate that the bank wants you off? By blocking your increment they might be hoping you end up remortgaging the full amount with another bank in order to move.

Nah, regular rate but on about 4 year fix now. I really have no idea. I guess I'll see what the broker says but maybe pull the lot and buy outright up north. Problem is that will make me a horrid rentier! And an annoyed London renter.

Maybe a loft conversion.....!

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Interesting times for the unmortgaged observer. MMR just being felt and expectation of rate rises over the next couple of years with a general election soon make these months the most interesting for a long time.

Fingers crossed some sanity will be allowed to return.

Indeed.

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It's proven they will borrow crazy sums, unless they are stopped - and exponential growth.. well London has reflated way above 2006/07 peaks, so how much more of this price madness can you really take? Flat line from these prices? I don't entertain that thought.

We need more data, as stories like below don't have enough context by themselves, but it's a lot more encouraging now for non-owners/hopeful upsizers., toward future better value, than it has been for a long time,

same thread, different poster... looks like a market cracking up to me, all these different forces in play.

I agree we could easily crash from here, esp London! I don't see MMR being the trigger thought, as if we do see on going weakness and even falling prices due to it, they will just change the rules back again or put in another level of support.

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Spoke to an advisor today who reckons the process didnt even get to the credit checking stage because i lived in Spain for a year in 2012/13 and came back only a year ago. Natwest is also my bank so suppose they know all this before any credit checking takes place.

Just to check how much Natwest dislike me i tried their online loan service and they also denied me this. Perhaps its a case of being refused based on my working abroad recently

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So I spent the rest of the afternoon speaking to an independent mortgage broker who told me that all kinds of ridiculous reasons are coming out for refusals of loans and mortgages his favourite question of which from one provider was "how much steak do you eat".

To which the correct reply is 'none, I get my meat from the corpses of people who ask me silly questions or tell me 'No''.

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Spoke to an advisor today who reckons the process didnt even get to the credit checking stage because i lived in Spain for a year in 2012/13 and came back only a year ago. Natwest is also my bank so suppose they know all this before any credit checking takes place.

Just to check how much Natwest dislike me i tried their online loan service and they also denied me this. Perhaps its a case of being refused based on my working abroad recently

....signing up for a long-term commitment without an employment/self-employed history...high risk.no sale...two or three years try again, you may need less to purchase the same or more? ;)

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My comments are purely anecdotal, but we have had a close eye on our local market (SW London) since last summer when we bought a BTL and more so since march when we put ours on the market...

A lot of people we know who live locally and who I know from work are having problems selling and buying. From vendors who can't find anywhere to move to, gazumping, buyers who don't get their mortgage under MMR (us) and houses being significantly undervalued by surveyors (us again), no one is finding the process straightforward. And a surprising number of properties are going back on the market after being under offer (I check Rightmove daily!).

Things are not easy in the London market at the moment in my experience.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=195761&page=51

Looking through that woman's posting history -

What is the best way of adding value to a house?

04-07-2014

In our area all you need to do is buy a mediocre house, add a rear single storey extension, knocking through to make a large kitchen diner and stick some bi-fold doors in.

Promptly remarket at £200k more than you purchased for.

Turns out her own house, when they bought it, didn't have a sign-off for the kitchen extension - discovered when she's trying to now sell. (She's created multiple threads about it, and none to happy with the sellers. They bought it in 2009 in Tooting apparently.

Joyfully accepted stories of raging forever HPI during 2010,11,12, and 13... one post I can't now find suggested she wanted to sell £640K (gains since 2013 when it was valued at £500,000.. pretty standard house in any other area apparently, outside London) but now being valued at price she got it valued of around this time last year. And she's bought into the miracle of BTL only a while ago (2013/2012), as hard work after 40 in the advertising game apparently and thus need HPI capital return + income. MMR troubles with her buyers, surveyors, wanting some comeback from who she bought house from in 2009, or the solicitor, or the insurance, and all the hassles proving foundations and stuff to proper standard to build control.

18-06-2014

House MASSIVELY downvalued by the surveyor

Yet another problem with the ongoing saga selling our house in a popular area of SW London.

Our buyers had their survey done last week and he surveyor had downvalued our house from £640k to £500k!!!

http://forums.moneysavingexpert.com/showthread.php?p=6583108 The surveyor is refusing to budge.

His argument is that he's not using the comparables that have completed in the last few weeks as supplied by our EA but ones that completed at the end of 2013 (last ones on Land Registry).

I know the last two to have completed because we viewed them when we were looking for our BTL.

The first was derelict and has been bought by a developer.

The second was inhabited but god knows how as the extension was falling down, the ceilings caving in, cavity wall insulation 'leaking' everywhere and the whole place was damp.

The third was a probate property that we tried to view but it got sold without being marketed.

The fourth was the best but still 50m2 smaller than ours, bad decorative order, downstairs bathroom only and backs onto a train track.

Houses 1-3 are currently being gutted.

This is the interesting bit - they were all on the market last June/July and priced in the low £300k's at the time when our house was valued at £500k - ie, what it has just been valued at. So maybe in a way the surveyor is correct and, compared to them, ours is worth £500k. I wonder what even they would be on the market at now in the 2014 market?

We're in the same position but we are the seller - when we came to sell we discovered that an extension built in 2006 by the previous owners (we purchased in 2009) had all the certificates but no final sign off.

Obviously all councils have slightly different rules but this is what happened to us.

29-04-2014, 4:37 PM

Right royally screwed by MMR

So, we started our mortgage process about 6 weeks ago

We are adding 30k to our current mortgage, bringing it to a total of £155k on a £650k house. LTV 24%, joint income nicely above £100k and no other debt, even on credit cards.

When I did the final part of my phone application I told them that we have £256k outstanding on a BTL mortgage with another lender. I accidentally ommitted the £1495 fees that were added, with a terrifying result.

From what I can tell, from this and other comments, so far it's just signs of softening from extreme HPI of last year.. nothing hard has yet hit, but obviously could do any moment - and market is edgy. Just needs some owners to beginning accepting less, to bring down value of all the other homes.

Edited by Venger

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  • 399 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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