lordofcolchester Posted December 31, 2008 Share Posted December 31, 2008 Just tried the HSBC calculator: Joint application but with only one salary of GBP50,000 with no debts. Maximum available mortgage of GBP177,000 on a total purchase price of GBP202,000. This appears to be a bit more prudent. Quote Link to comment Share on other sites More sharing options...
bearbullfence Posted December 31, 2008 Share Posted December 31, 2008 Ive entered a random figure of £32000 sole morgage - no other commitmentsComes back with i can borrow £140000 to £160000 Halifax affordability calculator Is this not a morgage of over 5x salary - Fecking crazy - you would think with their bad debts they would start to reduce this figure!! How much can you borrow?? Then when you go to the page - how much do i have to pay back... They list either - repayment morgage or interest only morgage...(with no mention of having to have any other repayment vehicle until you click on the hyperlink!!) Repayment calculator Big difference between plugging numbers into a calculator on a website and actually trying to apply for the mortgage. Quote Link to comment Share on other sites More sharing options...
Injin Posted December 31, 2008 Share Posted December 31, 2008 Big difference between plugging numbers into a calculator on a website and actually trying to apply for the mortgage. Is that because the staff are hiding under the desk, whimpering? Quote Link to comment Share on other sites More sharing options...
buzzardo Posted December 31, 2008 Share Posted December 31, 2008 Big difference between plugging numbers into a calculator on a website and actually trying to apply for the mortgage. Indeed - but at the rate of; "5 year tracker Currently 12.99%. Tracks at 10.99% above Bank of England base rate (currently 2.00%) until 31/01/2014." Followed by; "The standard variable rate, currently 4.75% for the remainder of the mortgage term. The overall cost for comparison is 9.2% APR." I don't think I'll be troubling their staff to apply anytime soon. Offered me a multiple of 4.25 single salary, with the fragrant Mrs B and four dependent Little B's.... So, bearing in mind that's presumably "optimistic," to drag me in for it to be pared down, I reckon full-on crash speed is still on, if not accelerating into 2009. C**t Gordon - go f**k yourself buddy - looks like you've well and truly shot your load to no effect. B (I wonder how long we have to wait for Damp Squibbley, to pitch in the "the bloke in my office who's just completed ten new BTL's, on 125% self-certs, and didn't tell the lender they're BTL so it's, like, well-affordable you losers...") Quote Link to comment Share on other sites More sharing options...
gilf Posted December 31, 2008 Share Posted December 31, 2008 (edited) Offered me £315,000 which is around 4.5 joint income. But more interestingly it didn't seem to have a problem with a 90% mortgage, I fiddled with figures and it did complain about anything over 90% so would suggest it doesn't just accept any old figure. I don't have any debt, but I started to add a few credit cards on and the figure started to drop significantly. Edited December 31, 2008 by gilf Quote Link to comment Share on other sites More sharing options...
Hubcaps Posted December 31, 2008 Share Posted December 31, 2008 4.7 x single income, 10% deposit. Deals 'offered' me include 5 yr fixed at 7.09% Trouble is, a lot of people that I know will be taken in by this and think as the prices in my area (Swindon) are coming down they're getting a good deal... Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted December 31, 2008 Share Posted December 31, 2008 £400k - **** me, i'm rich Quote Link to comment Share on other sites More sharing options...
snowman Posted December 31, 2008 Share Posted December 31, 2008 They appear to have changed their multiples.Lucky me - they'd be prepared to saddle me with £520000 worth of debt!!! Erm - No thanks Halifax. Looks like they'd give me £900,000. Do the maths people. Yes that's right. And I drive a 4x4 Quote Link to comment Share on other sites More sharing options...
Smith Posted December 31, 2008 Share Posted December 31, 2008 They're going to wonder why there's suddenly so much interest in mortgages today! £160k for me. Just think, I could have my own leasehold flat that I don't really own, which is falling in value by more each month than it would cost to rent, costing me a fortune in repairs and dodgy maintenance charges and not be able to afford the mortgage as soon as interest rates go up again. It's seriously tempting I have to say. Smith Quote Link to comment Share on other sites More sharing options...
valueofnothing Posted December 31, 2008 Share Posted December 31, 2008 Anyone else asked to do survey afterwards? Response to overall opinion question: "You affordability ratios are well too high. I mean have you noticed that you lost lots of money on bad mortgage debt? Also when you fill in the affordability calculator and then then the repayment calculator, the mortgage required becomes the amount generated affotdability calculator. This clearly encourages people to try to take out as big a mortgage as they can 'afford'. This is irresponsible." Quote Link to comment Share on other sites More sharing options...
Dr Renter Posted December 31, 2008 Share Posted December 31, 2008 Anyone else asked to do survey afterwards?Response to overall opinion question: "You affordability ratios are well too high. I mean have you noticed that you lost lots of money on bad mortgage debt? Also when you fill in the affordability calculator and then then the repayment calculator, the mortgage required becomes the amount generated affotdability calculator. This clearly encourages people to try to take out as big a mortgage as they can 'afford'. This is irresponsible." Offered 300K 4.5 times joint income Having said that the actual offers were insane 7.19% fixed rate or variable at 10% above base rate Quote Link to comment Share on other sites More sharing options...
New_Renter Posted December 31, 2008 Share Posted December 31, 2008 They're going to wonder why there's suddenly so much interest in mortgages today! hahaha there will be a new flash next month. " Halifax mortgage equiries inprove 1000000%" lol Quote Link to comment Share on other sites More sharing options...
this_prisoner_is_opting_out Posted December 31, 2008 Share Posted December 31, 2008 I just accidently put in my net salary rather than gross, one child and also admitted to having debts and it still came in at 4 times (net) salary. Go DEBT GO! Sign me up baby! Quote Link to comment Share on other sites More sharing options...
dr ray Posted December 31, 2008 Share Posted December 31, 2008 Ha Ha Ha If you put in 150K credit card debt on annual income of 200K and three+ kids they still offer almost 200K. Anyone with 150K credit card debt is likely to be bankrupt in weeks. Quote Link to comment Share on other sites More sharing options...
Jason Posted December 31, 2008 Share Posted December 31, 2008 I bet these mortgage 'how much can I borrow' calculators are left showing high multiples, as this would encourage those who would buy but can't really afford it to still think it's an option to them. I have a friend, who still thinks he can get as large a mortgage as he would like.... Quote Link to comment Share on other sites More sharing options...
5lab Posted December 31, 2008 Share Posted December 31, 2008 Why is there an obsession with 3.5x income loans? And so much outrage at 4.5? take an example of someone earning £45k. Take home is around £2500 pcm after tax, pension etc are taken out (going for ballpark figures here). A 3.5x mortgage of £157,500 will cost just over £920 pcm, leaving £1580 to spend on whatever frivilities they please (assuming 5% interest, which seems close to long-term averages) At the same time, a 4.5x mortgage, as offered here, of £202,500 will cost £1180 PCM, leaving £1320 to spend - a difference of £260 a month, or just over 10% of take home pay. why is this unreasonable? Of course it can, under certain circumstances, be unaffordable, but so can 3.5x. If a house was up for rent at £950 pcm, you wouldn't force people to earn over 45k before they can rent it, so why with mortgages? Taking where I live as an example, the cheapest 2 bed flats rent for around £700pcm, yet using these rules, someone on minimum wage (lets say one person working out of a couple, with a kid) should only be allowed to spend (based on 12k income) £245 pcm on housing. Where are they going to live? Quote Link to comment Share on other sites More sharing options...
MrB@work Posted December 31, 2008 Share Posted December 31, 2008 Why is there an obsession with 3.5x income loans? And so much outrage at 4.5? take an example of someone earning £45k. Take home is around £2500 pcm after tax, pension etc are taken out (going for ballpark figures here). A 3.5x mortgage of £157,500 will cost just over £920 pcm, leaving £1580 to spend on whatever frivilities they please (assuming 5% interest, which seems close to long-term averages)At the same time, a 4.5x mortgage, as offered here, of £202,500 will cost £1180 PCM, leaving £1320 to spend - a difference of £260 a month, or just over 10% of take home pay. why is this unreasonable? Of course it can, under certain circumstances, be unaffordable, but so can 3.5x. If a house was up for rent at £950 pcm, you wouldn't force people to earn over 45k before they can rent it, so why with mortgages? Taking where I live as an example, the cheapest 2 bed flats rent for around £700pcm, yet using these rules, someone on minimum wage (lets say one person working out of a couple, with a kid) should only be allowed to spend (based on 12k income) £245 pcm on housing. Where are they going to live? The vast sums mean greater sensitivity to interest rate changes. I could borrow about 45% of net pay, which is insane, considering we have the lowest interest rate in history, which will no dounbt go up within the first few years of the mortgage. And to top it all off, the recommended deal has a really batty name: 4 year fixedCarbon Offset 6.32% fixed until 30/04/2013 Quote Link to comment Share on other sites More sharing options...
Dunroamin' Posted December 31, 2008 Share Posted December 31, 2008 Carbon Offset - does that mean that they will plant a tree to reflect the fact that your personal finances are toast? Quote Link to comment Share on other sites More sharing options...
Orsino Posted December 31, 2008 Share Posted December 31, 2008 Carbon Offset - does that mean that they will plant a tree to reflect the fact that your personal finances are toast? Think of the environmental damage when all that money goes up in smoke. Quote Link to comment Share on other sites More sharing options...
rex Posted December 31, 2008 Share Posted December 31, 2008 4.5 times joint income. Cited a two yr fix for about 4.84 % (£1999 arrangement fee), or a 3 yr fix for a little bit higher interest, but still less than 5%. It said something about these interest rate only being available for loans over 500k. Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted December 31, 2008 Share Posted December 31, 2008 4.5 times joint income.Cited a two yr fix for about 4.84 % (£1999 arrangement fee), or a 3 yr fix for a little bit higher interest, but still less than 5%. It said something about these interest rate only being available for loans over 500k. LTV? Quote Link to comment Share on other sites More sharing options...
rentslave Posted December 31, 2008 Share Posted December 31, 2008 LTV? 5.4x gross salary! repayments would be 60% of my take home pay. These people should be locked up. What exactly does the FSA need before it steps in?? Quote Link to comment Share on other sites More sharing options...
lewissheridan Posted December 31, 2008 Share Posted December 31, 2008 4.5 x our joint income - distgusting... Quote Link to comment Share on other sites More sharing options...
ScaredEitherWay Posted December 31, 2008 Share Posted December 31, 2008 (edited) Earning £7,500 with no credit commitments, no dependents, it offered me £28,400 for a 25 year repayment mortgage. So I filled in the next bit: Buy a £50k house, 25 years, repayment, fixed rate, no fees, initial offer period more than 5 years. Ooops - no products met that criteria. Buy a £50k house, 25 years, repayment, fixed rate, with fees, initial offer period less than 5 years. About 5-6 products matched Cheapest was: 2 year fixed 4.19% fixed until 30/04/2011. (£152.39/month) Product Fee: £1995 Edited December 31, 2008 by ScaredEitherWay Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted December 31, 2008 Share Posted December 31, 2008 Why is there an obsession with 3.5x income loans? why is this unreasonable? Of course it can, under certain circumstances Because when interest rates go up, as they will do, the repayment will increase massively. 4.5 times at 5% isn't bad. 4.5 times at 7% might well be. Don't you remember the outcry in the papers only a few months ago when something like 1.4m people were going to struggle to make repayments because interest rates were a miserable 1.25% higher than when they had taken them out? Quote Link to comment Share on other sites More sharing options...
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