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This is a friend of a friend.  They had been trying to sell their small starter home house for months and finally got a buyer and went sold stc just before lockdown.   

They hadn't sought out a mortgage offer before as selling was taking so long.  They d been told however they could expect to borrow in the region of £180k....

Mortgage offer has come in at £81k.

They can't use htb as their deposit is too big. 

I've suggested str but doubt my advice will be listened too.

One is self employed, both average income earners still working throughout lockdown but in industries wobbling from covid19 ( what industry isnt).

So once the current mortgage offers expire or used up is this when it starts to get interesting?

 

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Theres something very odd there to get that spread. Have they have their last 3 years of accounts or certified tax returns to evidence the income for mortgage purposes? That's required if self employed and they take the average typically not last years figure. 

That difference looks like one of the two only submitted one year or something causing their income to be deemed nill. 

Suggest a different broker they should be telling them how to do this properly. 

 

Edited by captainb
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38 minutes ago, captainb said:

Theres something very odd there to get that spread. Have they have their last 3 years of accounts or certified tax returns to evidence the income for mortgage purposes? That's required if self employed and they take the average typically not last years figure. 

That difference looks like one of the two only submitted one year or something causing their income to be deemed nill. 

Suggest a different broker they should be telling them how to do this properly. 

 

I suspect the self employed person in that couple didn’t have very good figures to show on their mortgage application. 2-3 years‘ tax returns are normally required. I can imagine in today’s climate the lenders are adhering to this rather more rigorously than they were before. 

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Nationwide are reintroducing 90% mortgages, but with a lot of conditions, no new build, no flats, no furlough etc. 

Quite possible an online calculator gave them that number with favourable inputs, but when pushed on details, debts and regular payments they fell over badly.

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2 minutes ago, Tulip_mania said:

Nationwide are reintroducing 90% mortgages, but with a lot of conditions, no new build, no flats, no furlough etc. 

Quite possible an online calculator gave them that number with favourable inputs, but when pushed on details, debts and regular payments they fell over badly.

This is quite interesting. Suggests that if you have a safe job and a good financial history and aren’t doing anything stupid like buying a shoddy new build “luxury” apartment, you’ll get much better mortgage terms than the average joe. That’s going to cut out a lot of bidders.

Sounds like being low risk might become an advantage in the housing market again for the first time in a very long time. 

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2 hours ago, Tulip_mania said:

Nationwide are reintroducing 90% mortgages, but with a lot of conditions, no new build, no flats, no furlough etc. 

Quite possible an online calculator gave them that number with favourable inputs, but when pushed on details, debts and regular payments they fell over badly.

Reintroducting 90% LTV gives a nice headline, and they can use affordability details to deny it to most - effectively pulling it out of the market for most cases.

2 hours ago, Bear Goggles said:

This is quite interesting. Suggests that if you have a safe job and a good financial history and aren’t doing anything stupid like buying a shoddy new build “luxury” apartment, you’ll get much better mortgage terms than the average joe. That’s going to cut out a lot of bidders.

Sounds like being low risk might become an advantage in the housing market again for the first time in a very long time. 

Lenders are pricing in a drop and want to lower their risk appetite - we need Sellers and EAs to see the value of sensible, funded offers against Joe Leverage. Not all offers are equal.

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5 hours ago, bumblebeeandboy said:

This is a friend of a friend.  They had been trying to sell their small starter home house for months and finally got a buyer and went sold stc just before lockdown.   

They hadn't sought out a mortgage offer before as selling was taking so long.  They d been told however they could expect to borrow in the region of £180k....

Mortgage offer has come in at £81k.

They can't use htb as their deposit is too big. 

I've suggested str but doubt my advice will be listened too.

One is self employed, both average income earners still working throughout lockdown but in industries wobbling from covid19 ( what industry isnt).

So once the current mortgage offers expire or used up is this when it starts to get interesting?

 

but but but the person on the btl trolls bricking it thread said its naive to think house prices will align with salaries! You're describing house sales dependent on mortgages dependent on salaries..... who'd 'a thought it! lol

 

 

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Just now, msi said:

Reintroducting 90% LTV gives a nice headline, and they can use affordability details to deny it to most - effectively pulling it out of the market for most cases.

Lenders are pricing in a drop and want to lower their risk appetite - we need Sellers and EAs to see the value of sensible, funded offers against Joe Leverage. Not all offers are equal.

Absolutely, it's actually quite clever by Nationwide, they get press that they are 'helping First Time Buyers' but avoid too much dross on their lending books, I think HSBC's 90% offerings are similar, only lending to the best customers. Ironically, the safe customers are more likely to have a reasonable deposit, so excluding some doctors and nurses who only started working in the last few years, there isn't likely to be a huge group of people with rock solid income, no bad spending habits and a small deposit.

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5 hours ago, bumblebeeandboy said:

Mortgage offer has come in at £81k.

Similar to someone I know with not great credit record, but deposit to hand and above average income (£43k) for the area. £70k.... wonder how long this can last.

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5 hours ago, bumblebeeandboy said:

So once the current mortgage offers expire or used up is this when it starts to get interesting?

If this becomes the new 'normal' I would say yes.

Until Furlough ends and we start to see the real impact on unemployment, all we will hear is a lot of noise from the Bulls and Bears at opposite and extreme ends of the economic spectrum.

Currently the majority of the signs are pointing to the Bears being right, but honestly no one really knows as there are too many variables and props that can be rolled out. This isn't a fair market we are involved in, it's the world's greatest Ponzi.

My opinion is that unless there are substantial changes that increase the size of the average new mortgage, then a house price correction is baked in and if we fail to get an effective vaccine to COVID-19 in a relatively short timeframe, then doubly so.

https://www.bbc.co.uk/news/health-53392148

Edited by Switch625
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Of course TPTB will pull as many levers as they can to stop a HPC.

I cannot see what they can do to combat the biggest recession in 90 years and no slashing of mortgage rates.  Well, other than full-on Communism.  And I cannot see that with Trump winning in November.

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9 minutes ago, Switch625 said:

(Trump winning in November) Please God no!

Trump will win - he will play dirty and may use technicalities to get in. 

The democrats need a young new JFK type candidate to replace Biden (sudden Heart attack after Epsteins girlfriends starts to testify?)

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1 hour ago, Tulip_mania said:

Absolutely, it's actually quite clever by Nationwide, they get press that they are 'helping First Time Buyers' but avoid too much dross on their lending books, I think HSBC's 90% offerings are similar, only lending to the best customers. Ironically, the safe customers are more likely to have a reasonable deposit, so excluding some doctors and nurses who only started working in the last few years, there isn't likely to be a huge group of people with rock solid income, no bad spending habits and a small deposit.

If you can get a cheap mortgage from HSBC then you are the creme de la creme.

Any slight pimple on your credit record or CCTV footage of you scratching your **** with the ATM lobby and its - Computer says No.

No more than 4x household income,after discounting all the household spends.

 

 

 

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16 minutes ago, msi said:

Trump will win - he will play dirty and may use technicalities to get in. 

The democrats need a young new JFK type candidate to replace Biden (sudden Heart attack after Epsteins girlfriends starts to testify?)

It depends if Biden walks on stage, forgets where he is, gooses a female presenter then wets himself.

Most of those are likely.

 

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34 minutes ago, Switch625 said:

The pain is already beginning for some and I can't see this going away soon.

https://www.bbc.co.uk/news/business-53397954

800,000 UK households are behind on council tax

Unless the government pull off an economic miracle this will be just the very tip of the top of the iceberg.

OMFG!

If its hard for a theatre usherette in London .....

Surely that should be usher?

 

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44 minutes ago, Killer Bunny said:

Of course TPTB will pull as many levers as they can to stop a HPC.

I cannot see what they can do to combat the biggest recession in 90 years and no slashing of mortgage rates.  Well, other than full-on Communism.  And I cannot see that with Trump winning in November.

This ! 

all their tinkering is centered around a nearly full employed workforce over the past few decades. once that goes the rest is meaning less. 

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1 hour ago, Switch625 said:

Please God no!

You prefer the Marxists, led by a guy, clearly, with dementia. Go for it.

Defund the police, end genders, end education et al.  And put everyone in gulags, who disagree with you.

 

However, my expectation of the election is from objective analysis.

Edited by Killer Bunny
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1 hour ago, Switch625 said:

The pain is already beginning for some and I can't see this going away soon.

https://www.bbc.co.uk/news/business-53397954

800,000 UK households are behind on council tax

Unless the government pull off an economic miracle this will be just the very tip of the top of the iceberg.

High taxes and huge costs of living, last several years. Roost. Home. Chickens. To. Coming.

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32 minutes ago, spyguy said:

It depends if Biden walks on stage, forgets where he is, gooses a female presenter then wets himself.

Most of those are likely.

 

This is what I wrote to clients just yesterday:

"Trump to be re-elected is likely as I see it.  When Biden goes into the debates the people will drop their jaws that he's standing to be the US President.  Watch the entire debate, not the CNN/BBC snippet, to see what I mean."

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37 minutes ago, spyguy said:

It depends if Biden walks on stage, forgets where he is, gooses a female presenter then wets himself.

Most of those are likely.

 

As Trump said, he could shoot someone in Times Square and get elected.  Being attracted to his own Daughter, and grabbing women by the p*ssy are just 'foilbles' to the Republicans, so my money is on Trump.  Even if he a frequent flyer to Epsteins Island, he'd get away with it.

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38 minutes ago, Killer Bunny said:

You prefer the Marxists, led by a guy, clearly, with dementia. Go for it.

Defund the police, end genders, end education et al.  And put everyone in gulags, who disagree with you.

 

However, my expectation of the election is from objective analysis.

I wasn't per se supporting Biden, but I guess in a two horse race that is the only outcome. It truly is an awful time to be an American if Trump could be considered your best option.

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2 hours ago, Switch625 said:

I wasn't per se supporting Biden, but I guess in a two horse race that is the only outcome. It truly is an awful time to be an American if Trump could be considered your best option.

Trump is the thee sole reason we are not heading to a One World Govt right now.

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5 hours ago, Killer Bunny said:

Of course TPTB will pull as many levers as they can to stop a HPC.

I cannot see what they can do to combat the biggest recession in 90 years and no slashing of mortgage rates.  Well, other than full-on Communism.  And I cannot see that with Trump winning in November.

New scheme - Help to Not Be Reposessed (HTNBR).

Banks banned from repossessing houses with the arrears becoming a government backed loan, interest free for five years.

As much as I’m joking I could see someone pitching this in Westminster.

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  • 419 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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