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teddyboy

Thought They Were Tightening Lending Criteria?

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Just done a couple of 'affordability calculators' on the Alliance & Leicester and then Nationwide.

Applicant 1 salary £24,520

Applicant 2 salary £14,449

Combined £38,969. We have NO debts, no CC bills.

A&L say we can borrow £146,500

Nationwide say £158,600

PHUCK THAT!!!!

No wonder people pay ANYTHING for housing - a 1% increase could bring this country to its feet with the biggest BUST in history. It will make Diana Dors, Faith Brown and Kerry Cantonia look flat-chested!

THIS HAS NO RELEVANCE WHATSOEVER

* PS Anyone tried using this forum with a MAC? They are phucking shyte!!!! No relevance, just wanted to release some angst coz when I get my GFX card for my PC tommorrow I am gonna smash this focker with a hammer - I HATE MACS!

Bad news is I work on one in work - the new G5 the so-called 'fastst computer in the world'. My view? they are phucking w@nk also! Alls I need is an EA to offer me a home with a FREE Apple Mac as an incentive. I think I would probably get a 10 year stretch for what I would do to him!!!!! :angry: :angry: :angry:

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I agree it's mad. On a single 30k salary with NW you would get around £100k, add another salary of £26k and you get quoted for £223k!!

Now why does another £26k salary increase it by £120k?? Also what happens when the couple start a family?? Better hope the home is big enough for a couple of lodgers as well as a sprog!!!

Also among others Northern Rock are lending on BTL mortgages where you only need to break even from the rent to service the mortgage. What happens when the LL as repair bills, absent lettings period or other maintenance costs?

It's all really stupid. I hope some of these bad lenders get their deserved comeback. It just when they do savers will also be affected.

As long as rates stay low things will carry on as they are. Prices may go up and down depending on the season but it seems joe public now are putting housing above anything else in life. Retail and leisure industries better watch out. It's okay if we all pay stretched prices as long as we all stay in to make sure we service the debt!!

Britain has gone mad and when everyone wakes up and smells the coffee I'm sure the country will be heading for a particuarly nasty recession!! Either this will happen or we will have 100 year mortgages to keep things going along!!

PS - Here are some figures for the above NW joint mortgage!!

Paying Associated Fees Upfront Important Information

Product Term Initial Interest Rate Initial Monthly Payment Product Reservation Fee

10 Yr Fixed Rate 5.09 % (Fixed) £1317.72 £199 Apply Online

2 Yr Fixed Rate 4.74 % (Fixed) £1272.36 £399 Apply Online

3 Yr Fixed Rate 4.94 % (Fixed) £1298.18 £399 Apply Online

5 Yr Fixed Rate 4.94 % (Fixed) £1298.18 £199 Apply Online

Ouch!

Edited by Shamus

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Now why does another £26k salary increase it by £120k??

Because much more of the second salary can be used for mortgage repayments -- it doesn't have to cover electricity, telephone line rental, insurance, (possibly) car running costs, TV license, and all the other household costs that are pretty much the same whether there are one or two people in the household. And it only has to pay a third as much council tax as the first salary -- 75% for one person and 100% for two. And finally, it offers more security of income -- on one salary, there's a much greater risk of losing all your income overnight if you lose your job. With two salaries, at least you'll still have some money coming in.

It's always been stupid that you can get a higher multiple of a single salary than of joint salaries -- it ought to be the other way around.

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THIS HAS NO RELEVANCE WHATSOEVER

* PS Anyone tried using this forum with a MAC?

G3 Graphite, 56K dial-up with Mozilla 'Camino' browser - NO probs! :D

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Guest muttley

It's always been stupid that you can get a higher multiple of a single salary than of joint salaries -- it ought to be the other way around.

I think it harks back to the days when women would have children and stay at home to look after them,therefore losing one of the salaries.

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I think it harks back to the days when women would have children and stay at home to look after them,therefore losing one of the salaries.

Well, yes, they should absolutely give a lower multiple to people who have childcare costs or are planning either to lose a salary or incur childcare costs in the next five years, whether they have one or two salaries. But just basing it on whether you have one or two salaries is rather a crude yardstick.

Yes, this means that the people who need housing most are the least likely to be able to afford it. But I wouldn't tackle that by over-regulating mortgage lenders. If society feels it is desirable to provide extra support to those who are bringing up children, then make it nice and transparent with extra taxes on the childless paying for government mortgage subsidies for those who have children. If society does not feel it is desirable, then the status quo wll do nicely.

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  • 337 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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