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Sky: " Mortgage Approvals Take Another Tumble"


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HOLA441
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HOLA442
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HOLA443
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HOLA444
...

To go back to my original post here - As far as most sensible people are concerned, borrowing at ANYTHING over 3.5 x salary p.a. IS SUB-PRIME!!!!!!!!! --

.............and I will not budge on this....

I would only add 3.5x salary and 95% LTV.

Given that twice in the last twenty years we have witnessed exactly the same phenomenon (under both Labour and Conservative administrations) - with all the destructive costs to families, communities, and the economy which inevitably follows in the wake of House Price Inflation - how do we prevent it happening again?

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HOLA445
I would only add 3.5x salary and 95% LTV.

Given that twice in the last twenty years we have witnessed exactly the same phenomenon (under both Labour and Conservative administrations) - with all the destructive costs to families, communities, and the economy which inevitably follows in the wake of House Price Inflation - how do we prevent it happening again?

I agree with you wholeheartedly 'happy?'........

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HOLA446
Sorry mate -- it is more like 60-70%. The "average" price of a property in the UK is $250k --- you're not going to tell me the average person earns [£250k/3.5] £71.72k per anum ---- which --- if you're lending RESPONSIBLY --- is what you have to earn to buy the "average" property!!!!! WHAT A FARCE!!!!!!

As far as most sensible people are concerned, borrowing at ANYTHING over 3.5 x salary p.a. IS SUB-PRIME!!!!!!!!!

Well its YOUR subprime, but the term subprime is mearly a measure of percieved risk in the industry. We well know on here that very lax lending standards extend across over the whole consumer credit complex. Go back a few decades and everythings subprime by standards of the past.

Edited by domo
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HOLA447
Well its YOUR subprime, but the term subprime is mearly a measure of percieved risk in the industry. We well know on here that very lax lending standards extend across over the whole consumer credit complex. Go back a few decades and everythings subprime by standards of the past.

I'm trying to understand your post domo...... can't quite figure out what you're saying...?!?

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HOLA448
As far as most sensible people are concerned, borrowing at ANYTHING over 3.5 x salary p.a. IS SUB-PRIME!!!!!!!!! --

Eric, being so rigid sets you up for a fall. Consider two borrowers, Mr A and Mr B.

Mr A is a young and newly qualified doctor, he's in good health and he wants a ten year repayment mortgage on a freehold house in a well established neighberhood. He has a 50% deposit. Unfortunately he wants to borrow 3.6 times his salary, so by your definition he's sub-prime despite his excellent prospects and large deposit on a solid home.

Mr B is a 70 year old smoker who has a part-time job in the stock room at F.C.U.K. Because he's only been working there six months he has virtually no employment security. He'd like a 100% interest only mortgage on a derelict leasehold mobile home that resides on a floodplain. But because he's looking to borrow only 3.4 times his salary presumably you'd judge him "prime".

I don't think so.

Edited by silver surfer
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HOLA449

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