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Longtermrenter

Petition Make paying rent enough proof that you are able meet mortgage repayments

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would only act to drive up prices more. 

Getting a deposit together, even 5% basic is not the biggest ask if your determined to buy an overpriced property.

if you can't muster 5% even when renting then your doing something very wrong. 

its not not ability to pay its ability to save 

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Not a good idea at all.  

Fine if interest rates were to stay this low forever, but dangerous given the potential for interest rates to increase markedly from here.  

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2 hours ago, jiltedjen said:

would only act to drive up prices more. 

Getting a deposit together, even 5% basic is not the biggest ask if your determined to buy an overpriced property.

if you can't muster 5% even when renting then your doing something very wrong. 

its not not ability to pay its ability to save 

I'm self employed, have paid rent for 15 years but never been able to get a mortgage. I could easily afford repayments on something sensible. I think doing this would keep prices down as what you can afford in rent is often less than what people pay for over extended mortgages.

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18 minutes ago, dgul said:

The best way to get prices to drop would be to make it much more difficult to get a mortgage, not less difficult.

Agreed

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The politicians / banks pretend they are doing buyers a favour with low interest rates, small deposits, Help to Buy, etc.  

It is all a con, they are helping the sellers by inflating prices.  

This petition might as well say 'make it easier for us to borrow money, so we can all bid up the price of property, and help those selling to make a bigger profit / gain'.  In reality we need higher interest rates, higher deposit requirements, more supply, less demand and mortgages which are harder, not easier, to get.  These are the factors which will bring down house prices.

 

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I am with the other hpcers above.

144,000+ names gagging for mortgage debt, to join the other bubble pushing and falling over each other buyers, in this housing market.

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12 hours ago, Longtermrenter said:

I'm self employed, have paid rent for 15 years but never been able to get a mortgage. I could easily afford repayments on something sensible. I think doing this would keep prices down as what you can afford in rent is often less than what people pay for over extended mortgages.

Just to clarify, have you been self employed for the whole 15 years?

Reality is that with 15 sets of accounts behind you, it's more likely to be affordability criteria, credit rating and size of deposit which will stop you getting a mortgage.

Remember the affordability criteria are not just to check you could pay a mortgage under current conditions but also in the event of a significant rate rise. 

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1 hour ago, Hullabaloo82 said:

Just to clarify, have you been self employed for the whole 15 years?

Reality is that with 15 sets of accounts behind you, it's more likely to be affordability criteria, credit rating and size of deposit which will stop you getting a mortgage.

Remember the affordability criteria are not just to check you could pay a mortgage under current conditions but also in the event of a significant rate rise. 

About 5 years ago they really were quite keen to lend to SE, albeit with the demands of 3 years accounts (only).  Not sure what it's like now, though.

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1 hour ago, dgul said:

About 5 years ago they really were quite keen to lend to SE, albeit with the demands of 3 years accounts (only).  Not sure what it's like now, though.

These days the bank will lend you a lot less (2.5/3 x income) if you're self employed and the sole applicant, especially if you have dependants. But they will lend to you provided you have 2 or 3 years accounts and a half decent credit rating. My brother in law just 'employed' his wife for a few months and the amount they would lend pretty much doubled.  

Without wanting to be unkind, if someone's been self employed for 15 years and still can't get a mortgage at all maybe business isn't their strong suite? 

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3 hours ago, Hullabaloo82 said:

Just to clarify, have you been self employed for the whole 15 years?

Reality is that with 15 sets of accounts behind you, it's more likely to be affordability criteria, credit rating and size of deposit which will stop you getting a mortgage.

Remember the affordability criteria are not just to check you could pay a mortgage under current conditions but also in the event of a significant rate rise. 

Yes, 15 years. There's several house i could have bought in Kent over the last 5 years that went for 150 to 200k that i could have bought and, with my deposit, have had a mortgage for less than i am paying renting. Current rent is 750 pcm. Normal rent around here more like 1000pcm now. I have paid between 700 and 750 pcm over last 15 years. Would nearly have paid mortgage off now.

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1 hour ago, Longtermrenter said:

Yes, 15 years. There's several house i could have bought in Kent over the last 5 years that went for 150 to 200k that i could have bought and, with my deposit, have had a mortgage for less than i am paying renting. Current rent is 750 pcm. Normal rent around here more like 1000pcm now. I have paid between 700 and 750 pcm over last 15 years. Would nearly have paid mortgage off now.

So out of interest if you have a decent deposit and have 15 years of accounts, why won't they lend to you?

There must be more to it than just being self-employed. Are you the sole breadwinner with several children? Poor credit history? Sorry, I'm not buying that it's as simple as no one will lend to you purely because you're self employed. 

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20 hours ago, Hullabaloo82 said:

So out of interest if you have a decent deposit and have 15 years of accounts, why won't they lend to you?

There must be more to it than just being self-employed. Are you the sole breadwinner with several children? Poor credit history? Sorry, I'm not buying that it's as simple as no one will lend to you purely because you're self employed. 

I don't make enough money. Our joint earnings are quite low. We are very frugal however, run second hand vehicles, I do all the maintenance. We cook from cheap ingredients, don't have extravagant holidays, meet the rent every month, Manage to save a bit every year. We could afford a mortgage of £800 a month with stress testing to 1300 a month which would allow for £150k borrowed at 10% over 25 years. No bank would give that to me, have tried brokers. Credit rating is ok although haven't had any loans for 18 years so they probably don't like that. What I am saying is, we could meet the repayments but we wouldn't get a mortgage on our earnings of that amount.

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21 hours ago, Longtermrenter said:

Some of the houses we could have bought ended up as buy to let purchases.

Same thing for many of us.  

BTLers outbidding us, turning would-be homeowners into renters, in their 'providing homes' = taking homes.

My hope is in HPC.  Renting, grinding out savings, and HPC.  Savings that go further to deposit when prices fall, and perhaps fall into new lending criteria... although time-is-a-ticking for some of us, when it comes to mortgage full eligibility (25 years).

Not in make them lend more, on easier terms, to compete and outbid other people, to keep prices inflated.   £800 per month, with you okay at £1,300 pm.  Suggests you can wait and save some dosh in the here and now (and hope for HPC...?).  Although admittedly many lost hope and so many willing to put most recent buyers up as human shields, but the BTLers have been doubling down and in a few days the new S24 regime kicks in, where many a BTLer will find themselves with higher tax liability on their next return.  SDLT surcharge might calm things in time soon to come as well.

Have you played with a mortgage calculator on some of the rates out there?  Against what you would like the banks to advance you to pay current prices.

https://www.drcalculator.com/mortgage/uk/

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1 hour ago, Venger said:

Have you played with a mortgage calculator on some of the rates out there?  Against what you would like the banks to advance you to pay current prices.

https://www.drcalculator.com/mortgage/uk/

Yes, I have the Android app, thanks for suggesting it though. It is a very good calculator. I don't want to outbid BTL - just would like to be able to get a small mortgage on houses i deem to be cheap enough. Lets hope for the HPC - I have about 50k saved, wont get me very far so would be nice to be able to get a mortgage if the crash comes but I'm guessing borrowing will be tighter still then. Will probably move abroad depending on Brexit outcome.

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2 hours ago, Longtermrenter said:

I don't make enough money. Our joint earnings are quite low. We are very frugal however, run second hand vehicles, I do all the maintenance. We cook from cheap ingredients, don't have extravagant holidays, meet the rent every month, Manage to save a bit every year. We could afford a mortgage of £800 a month with stress testing to 1300 a month which would allow for £150k borrowed at 10% over 25 years. No bank would give that to me, have tried brokers. Credit rating is ok although haven't had any loans for 18 years so they probably don't like that. What I am saying is, we could meet the repayments but we wouldn't get a mortgage on our earnings of that amount.

Have you tried a mortgage for the Help to Buy Bail Banks scheme? Apparently the lending standards are lax because taxpayers are going to divvy up to 20% losses for the bankers.

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1 hour ago, Democorruptcy said:

Have you tried a mortgage for the Help to Buy Bail Banks scheme? Apparently the lending standards are lax because taxpayers are going to divvy up to 20% losses for the bankers.

Wouldn't touch any of that with a barge pole.

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I heard the fella who came up with this petition in an interview on the radio.

The comedy element was that his credit file sucked backside because he defaulted on loans already.

Nice one mate. Nice one.

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47 minutes ago, Noallegiance said:

I heard the fella who came up with this petition in an interview on the radio.

The comedy element was that his credit file sucked backside because he defaulted on loans already.

Nice one mate. Nice one.

Didn't know that - oh well - please don't put me in the category of numb-skulls like that. I personally think any sort of petition that puts the demands of renters into the view of the Govt is worth doing, just to highlight the unrest.

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Not really unrest though is it? It's people who banks deem unsuitable to lend to based upon their lending criteria and risk models.

who are begging for more borrowing than they have been offered.

if anything shows the system is working just like the gov want it to.

If a self employed person can't get a mortgage in non recessionary times, does not bode well for them coping when the inevitable recession rolls around again.

banks are externally lax on their lending even post MMR. if anything it sounds like they are protecting you from yourself.

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