Sunday, March 13, 2011

The Sheeple Ask A VI For Help

Mortgage questions answered by an 'expert'

Q1. My girlfriend and I are looking to buy our first house. We are both 30 and have saved £170,000 for a deposit and have another £30,000 to cover stamp duty and other buying costs. Our combined salary is £120,000, which is just above the average for London. We both have clean credit histories. We are interested in buying a detached property out of London around the £650,000 mark. Do you think a bank would lend us the near £500,000 we would need?

Posted by rantnrave @ 06:23 PM (4528 views)
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22 thoughts on “The Sheeple Ask A VI For Help

  • it_is_going_with_a_bang says:

    “30 and have saved £170,000 for a deposit + £30 to cover costs”

    “just above” Mr Average I would think … just….

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  • London salaries are a bit higher than the rest of the country, but that’s still way more than “just above average”.

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  • well they do live in another world

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  • It’s only half a million they are looking to borrow, should be no problem – the lender might even do it over a 40 year term (extending into retirement) to keep the repayments down and tie them nicely into a lifetime of debt !

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  • Poor things.

    If only they knew that they were giving it away.

    Only a slight correction on their property and Hey Presto!

    “They think it’s all over.” lol

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  • In london you have many classes:

    a. the underclass. Dont work, live of social. Often several generations of family.
    b. The immigrant class. Probably in the millions. Doing all sorts of jobs and renting.
    c. Traditional working class on low salaries. If they are lucky they still have a council house.
    d. The middle class. Often two income familes
    e. etc,etc.

    If he is putting himself in the middle class classification then £120,000 a year joint income is probably about right for being just above average for this ‘class’. Because in London, a,b and c don’t really count on a lot of peoples radar screens.

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  • Why don’t they just ask the bank?

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  • 5. britishblue

    Yes, a,b and c are considered the underclass in most cases. The super wealthy have shafted oopps, shifted the whole system.

    It won’t be long before this couple are asset stripped and will join the rank. Welcome to the duo class system of the future.

    What will your chip say, friend or foe?

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  • Britishblue,

    I know plenty of people who fall between categories (c) and (d). They earn too much to get a council house, but too little to be able to buy anything in London. Typically earning £18-36k, and in the 18-36 age group. That £60k “just above average” is nonsense. It’s only average amongst their own narrow social circle. I’d wager that for most people, their salary is “average” amongst their peers.

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  • Average London salary is around £36k, so doing the maths … £120k is way more than “just above average”.

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  • “just above average”.

    just under double the average London joint income. Why do these experts lie through their teeth. Sexperts.

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  • markj69 str05 says:

    @drewster 6…’ They earn too much to get a council house, but too little to be able to buy anything…'[anywhere]. This is a too typical scenario. The effects on Society are yet to be felt in their full impact. When nurses, doctors, teachers, police, firemen, etc… can’t afford to buy in an area they work, then some serious sh1t is going on. And it’s been like it for years.

    IMO, times have changed. there is no going back. The greedy fookers (financial institutions) have bled society of their future wealth, in exchange for bricks and mortar (and the land on which it stands).

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  • The trouble that I have with this is that it is typical of a large number of the forum members on this website.Over the last few years I have grown tired of listening to all the talk here of £100k salaries and £500k houses. As Britishblue quite rightly points out the truly average earner does not appear on their radar. The odd thing is that these guys are oh so quick to complain about all the spongers and striking workers who are pulling in less than a quarter of their salary whilst firmly believing that they are worth every penny of their bloated incomes.

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  • The combined salary is well above the average but setting that aside they need to find an even bigger deposit if they want a really competitive mortgage deal as per the “experts” advice ie ” A tip would be to keep the loan-to-value (LTV) ratio to 75%, as you would then obtain better products” To access the best deals in the market a 40% deposit currently does the trick.

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  • markj69 str05 says:

    @jack c… 40% deposit – best deals. I guess that reflects the low risk end of mortgage lending. Do you suppose lenders think a 40% drop in house prices is possible?

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  • markj69 str05 – yes in answer to your ? – the FSA stress tests lenders ability to withstand a 30% drop in prices and lately the lenders have tightened up dramatically on Interest only loans and are wobbly on anything over £500k.

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  • “BBC News: Mortgage questions answered by an ‘expert'”

    I read this earlier today and thought that — what a knob-head.

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  • Make sure you apply for a vasectomy along with the mortgage, we wouldn’t want any children spoiling the party.

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  • Same old rubbish, same old cliches, same old fantasies about houses.

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  • mark wadsworth says:

    Markj69: “When nurses, doctors, teachers, police, firemen, etc… can’t afford to buy in an area they work, then some serious sh1t is going on. And it’s been like it for years.”

    Exactly!

    But the Home-Owner-Ists have already got their counter-propaganda in place. If you say “It’d be a good idea to build more homes in this area to get prices down a bit so that the schools and hospitals can find it easier to attract staff” the Home-Owner-Ists reply “But if we allow more houses to be built then more people will move here and so there’ll be more ‘pressure on local services'”

    They fail to recognise that it would make things a lot easier (cheaper) for every school or hospital in the more expensive parts of the country if house prices in that area went down a bit.

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  • If they ban second homes, BTL and foreign investors, the balance could be restored. Homes should never have be used as a pension. Let people live in houses and save in the traditional way for retirement by alternative investments. We need houses to live in.

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  • mark wadsworth says:

    Will, there is no need to ban anything at all – replace as many taxes as possible with LVT and it will all sort itself out.

    The tax system should be indifferent whether a household lives in a £200,000 house or whether it lives in a £120,000 house and owns a holiday flat worth £80,000.

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