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how much do you need to earn to get
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"A mortgage for x amount?
What I'm looking for is the equation mortgage lenders use. Years ago it was three to three and a half times a salary."
Type "how much mortgage can I get" into google and you will get links to the main sites as a guide.
It's no longer as simple as income multipliers since they now take into account other out-goings, loans etc, and even number of children.
We have some well-paid friends who were just rejected since they have 4 kids.
Mr ddc |
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By (user no longer on site)
over a year ago
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Banks are not willing/can't lend.
It's tricky but, from a banks perspective lending in the current housing market is large risk, hence why they want larger and larger deposits plus mortgage lending isn't exactly the most profitable
The truth is they can get much better returns lending 50-300 sums to the very poor, hence the exponential rise in wonga companies.
Were entering a possible deflationary period and obviously this makes debt larger in real terms and harder to pay back with the obvious chance of larger amounts of defaults.
Housing at the moment is incredibly complicated and really can't be solved by the old adage of "build more" |
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"
We're entering a possible deflationary period and obviously this makes debt larger in real terms and harder to pay back with the obvious chance of larger amounts of defaults.
"
No we're not. Uk inflation is only low because of the fall in the oil price. Once this works it's way through the period, inflation will return to target, and once Saudi/US get bored of goading Russia, and oil prices recover, our inflation rate will be around 3-4% again. Our Current Account Deficit will see to that.
Not that we're all doomed, you understand, just it'll soon be business as usual...  |
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By (user no longer on site)
over a year ago
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"
We're entering a possible deflationary period and obviously this makes debt larger in real terms and harder to pay back with the obvious chance of larger amounts of defaults.
No we're not. Uk inflation is only low because of the fall in the oil price. Once this works it's way through the period, inflation will return to target, and once Saudi/US get bored of goading Russia, and oil prices recover, our inflation rate will be around 3-4% again. Our Current Account Deficit will see to that.
Not that we're all doomed, you understand, just it'll soon be business as usual... "
.
Yes I hope your right,I just think deflation is inevitable.
Part of the reason oil is cheap is because currency is deflating, it's why growth is low and currency is high.
Japan's been in and out of deflation for oooo 20 years, they got into that doing exactly what we did.
It's not just us experiencing deflation, 0% interest rates and QE with very low velocity all leads down the path of deflation, how long that deflation will last for is anybodys guess from what I've read probably a year maybe two!.
I think our current account deficit is the elephant in the room and that will push us into high inflation eventually but I personally think that will be a couple of years away!.
From a banks perspective though.
Were in a housing bubble
The economy is showing very slow growth in real terms!
Wages are stagnant
There's a chance of deflation
Those aren't great times to lend money by anybody's standard, even worse when your dealing with our current parasitic banking system |
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By (user no longer on site)
over a year ago
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As others have said already, lenders aren't taking such a simplistic view any more. I'd suggest having a look at some of the mortgage calculator sites and then going through a broker as they'll have all the deals available to them.
If you've got a decent (doesn't have to be perfect) credit rating, can demonstrate that you can afford the monthly repayments and have some deposit then there are lenders more than willing to lend at the moment. It's not all doom and gloom; yes they are being more cautious than they were but they are lending to good mortgage candidates and the rates are still relatively low. |
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By (user no longer on site)
over a year ago
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It's much more complicated than it used to be. Lenders are far more cautious nowadays. You could ask a mortgage broker and find out how much you're likely to be able to borrow - although this may incur a cost.
There are mortgage calculators online, but lenders take lots of different criteria into account on the income and expenditure. If you can get a mortgage in principle agreed - that makes it easier to start the ball rolling. |
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By *icky999Man
over a year ago
warrington |
Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust |
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By *igeiaWoman
over a year ago
Bristol |
I recently remortgaged. I did all my sums first, figuring out every single bit of my monthly outgoings. I then used a mortgage calculator to work out how much more or less I would be paying by remortgaging. I had all of those figures to hand before I even contacted a bank but it made the whole process far easier - for example if I could already afford to pay out say 800 a month and had never defaulted but remortgaming would change that to between 500 and 600 then remortgaging would be a sensible move and banks would view it as such. Age and job security also comes into it. Plus if you're thinking of remortgaging to consolidate any unsecured debt then the maximum loan term they now tend to consider is 10 years and it will have to be repayment rather than interest only so make sure you add that to the calculator. |
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By (user no longer on site)
over a year ago
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"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust"
.
Yes I think that's just you!  |
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By *icky999Man
over a year ago
warrington |
"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust.
Yes I think that's just you! "
I wouldn't bet your house in it |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
Since the 'Mortgage Market Review' came into effect (Google it!) there's no simple income multiplier anymore. The average mortgage application now takes about four hours face to face.
Best bet is to ask your bank, then maybe a broker.
Simply looking at rates online and the likes of moneysavingsexpert won't help.
A |
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"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust"
I've had three pay rises since the recession,but I work in a business that does well when money is tight as you are more likely to repair that replace..we've been booming,just need longer spells of cold weather though  |
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By (user no longer on site)
over a year ago
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"Thanks for all the responses. I'm not actually looking to get a mortgage. I had a hidden agenda you see  "
Are you property hunting for Sydney University? |
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By (user no longer on site)
over a year ago
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"Thanks for all the responses. I'm not actually looking to get a mortgage. I had a hidden agenda you see "
You want to know how much a guy earns by the value of his house his just purchased ?? |
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By (user no longer on site)
over a year ago
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"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust.
Yes I think that's just you!
I wouldn't bet your house in it"
.
No no I wouldn't.
But I fail to see the bust in your boom bust theory.
All we've had is a boom with a two year temporary freeze.
In a bull market the classic example on a graph is the head and shoulders with a dead cat bounce, draw a line through it reverse it and the peak should give you the drop, if it follows anything like that, you'd have to look at average house price bring around 100k instead of the 190k of course all areas would vary because the values outside the actual price are different but anyway you look at it housing is in a bubble as prices have out stripped growth since 1999!  |
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By *icky999Man
over a year ago
warrington |
"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust.
Yes I think that's just you!
I wouldn't bet your house in it.
No no I wouldn't.
But I fail to see the bust in your boom bust theory.
All we've had is a boom with a two year temporary freeze.
In a bull market the classic example on a graph is the head and shoulders with a dead cat bounce, draw a line through it reverse it and the peak should give you the drop, if it follows anything like that, you'd have to look at average house price bring around 100k instead of the 190k of course all areas would vary because the values outside the actual price are different but anyway you look at it housing is in a bubble as prices have out stripped growth since 1999! "
that was verbal diarrhea im afraid hun.
A temporary freeze? That was a pretty big bust. The world went bankrupt! Lol you can buy a two bed semi for 50 odd grand in most northern towns thats two times average earnings. |
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By (user no longer on site)
over a year ago
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"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust.
Yes I think that's just you!
I wouldn't bet your house in it.
No no I wouldn't.
But I fail to see the bust in your boom bust theory.
All we've had is a boom with a two year temporary freeze.
In a bull market the classic example on a graph is the head and shoulders with a dead cat bounce, draw a line through it reverse it and the peak should give you the drop, if it follows anything like that, you'd have to look at average house price bring around 100k instead of the 190k of course all areas would vary because the values outside the actual price are different but anyway you look at it housing is in a bubble as prices have out stripped growth since 1999!
that was verbal diarrhea im afraid hun.
A temporary freeze? That was a pretty big bust. The world went bankrupt! Lol you can buy a two bed semi for 50 odd grand in most northern towns thats two times average earnings. "
.
Lol verbal didgeridoo woohoo
I dare say the average wage in towns where the houses are 50k won't be 25k.
That's why I said all areas would vary, but as a general rule looking at the whole picture, what housing saw was a two year freeze with maybe a slight 5-10% drop in it.
That's not a bust when the previous growth was 125% |
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By (user no longer on site)
over a year ago
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"I cant get a mortgage and my own bank manager doesn't know why.
Well he does.
His advice was basically to get myself into debt. 
"
.
Unfortunately the modern credit score system does require you to show how you feel with debt, this means you have to acquire debt to show you can manage it..
It's a crazy algorithmic world were living in  |
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By (user no longer on site)
over a year ago
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"I cant get a mortgage and my own bank manager doesn't know why.
Well he does.
His advice was basically to get myself into debt.
"
Do you actually want a mortgage? If you do then apply for a credit card. Use it, pay it off, use it, pay it off. Build a credit history. Job done. |
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"
I dare say the average wage in towns where the houses are 50k won't be 25k.
"
You'd be surprised, plus we also have roads n stuff if your job isn't next door.
It's not as grim oop north as we like to let you southerners believe
Rest of it was about right though  |
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By *icketysplitsWoman
over a year ago
Way over Yonder, that's where I'm bound |
"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust.
Yes I think that's just you!
I wouldn't bet your house in it.
No no I wouldn't.
But I fail to see the bust in your boom bust theory.
All we've had is a boom with a two year temporary freeze.
In a bull market the classic example on a graph is the head and shoulders with a dead cat bounce, draw a line through it reverse it and the peak should give you the drop, if it follows anything like that, you'd have to look at average house price bring around 100k instead of the 190k of course all areas would vary because the values outside the actual price are different but anyway you look at it housing is in a bubble as prices have out stripped growth since 1999!
that was verbal diarrhea im afraid hun.
A temporary freeze? That was a pretty big bust. The world went bankrupt! Lol you can buy a two bed semi for 50 odd grand in most northern towns thats two times average earnings. "
But your £50k would only buy a garage in a large part of London. My sister sold one (not her own) in a West London borough for £75k 15 years ago.
The reality is that people need places to live but if there isn't a huge demand in a particular area the property is only worth what someone is willing to pay for it. A northern town that sees some sort of growth, new industry or whatever would soon find that a two bed semi will cost more than £50k.
There are houses available in this country but they're not in the right places for all the people.
|
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By (user no longer on site)
over a year ago
|
"I cant get a mortgage and my own bank manager doesn't know why.
Well he does.
His advice was basically to get myself into debt.
Do you actually want a mortgage? If you do then apply for a credit card. Use it, pay it off, use it, pay it off. Build a credit history. Job done. "
I do yes.
I'd like one so that I'm not throwing rent money down a black hole like I have been for the past god knows how many years.
His advice was exactly the same.
Get a credit card.
The issue is I have had no credit.
And that's a problem it seems. |
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By *icketysplitsWoman
over a year ago
Way over Yonder, that's where I'm bound |
"I cant get a mortgage and my own bank manager doesn't know why.
Well he does.
His advice was basically to get myself into debt.
Do you actually want a mortgage? If you do then apply for a credit card. Use it, pay it off, use it, pay it off. Build a credit history. Job done.
I do yes.
I'd like one so that I'm not throwing rent money down a black hole like I have been for the past god knows how many years.
His advice was exactly the same.
Get a credit card.
The issue is I have had no credit.
And that's a problem it seems. "
You need a small loan and then get a credit card. It's fairly easy to get one. If you get a John Lewis one then you get vouchers every few months. Look at the best deals and get yourself a card.
Can you bank manager give you a loan for something personal (one of your bikes must need something!)?
|
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By *icky999Man
over a year ago
warrington |
"Is it just me who thinks wages are going to shoot up in the next few years and we're just at the start of a housing bubble, just like a million times before?
Boom! And bust
boom! And bust
boom! And bust.
Yes I think that's just you!
I wouldn't bet your house in it.
No no I wouldn't.
But I fail to see the bust in your boom bust theory.
All we've had is a boom with a two year temporary freeze.
In a bull market the classic example on a graph is the head and shoulders with a dead cat bounce, draw a line through it reverse it and the peak should give you the drop, if it follows anything like that, you'd have to look at average house price bring around 100k instead of the 190k of course all areas would vary because the values outside the actual price are different but anyway you look at it housing is in a bubble as prices have out stripped growth since 1999!
that was verbal diarrhea im afraid hun.
A temporary freeze? That was a pretty big bust. The world went bankrupt! Lol you can buy a two bed semi for 50 odd grand in most northern towns thats two times average earnings. .
Lol verbal didgeridoo woohoo
I dare say the average wage in towns where the houses are 50k won't be 25k.
That's why I said all areas would vary, but as a general rule looking at the whole picture, what housing saw was a two year freeze with maybe a slight 5-10% drop in it.
That's not a bust when the previous growth was 125% "
1.3 mill lost there jobs? ordinary people at soup kitchens?The government stopping the banks going bankrupt and stopping forclousures? The recession?
Your champagne glass is half full. |
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By *icketysplitsWoman
over a year ago
Way over Yonder, that's where I'm bound |
"(one of your bikes must need something!)?
My bikes want for nothing..they are SUPERB!
"
Give them a relatively expensive treat then, just because you love them so much. Or get a loan to build a new dog house. |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Halifax (HBOS) have a bank where by you can get denied a mortgage from Halifax but their subsidiary bank will authorise you a self cert mortgage"
I'm not aware of any self cert mortgages being available since 2014.
Lenders will still give self employed a mortgage - but they'd soon find themselves in front of the regulator were they to go back to old style self cert. The MMR affects all mortgage loans - and self cert would breach all the new guidelines.
A |
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By (user no longer on site) OP
over a year ago
|
"Halifax (HBOS) have a bank where by you can get denied a mortgage from Halifax but their subsidiary bank will authorise you a self cert mortgage
I'm not aware of any self cert mortgages being available since 2014.
Lenders will still give self employed a mortgage - but they'd soon find themselves in front of the regulator were they to go back to old style self cert. The MMR affects all mortgage loans - and self cert would breach all the new guidelines.
A"
What's vaccinations got to do with it? |
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By *icky999Man
over a year ago
warrington |
"Halifax (HBOS) have a bank where by you can get denied a mortgage from Halifax but their subsidiary bank will authorise you a self cert mortgage
I'm not aware of any self cert mortgages being available since 2014.
Lenders will still give self employed a mortgage - but they'd soon find themselves in front of the regulator were they to go back to old style self cert. The MMR affects all mortgage loans - and self cert would breach all the new guidelines.
A"
back in the day my estate agent filled the forms out with a pen stolen from william hill.
There was more truth in the fantasies&storys section on fab than those forms
they still do 'em just by another name |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Halifax (HBOS) have a bank where by you can get denied a mortgage from Halifax but their subsidiary bank will authorise you a self cert mortgage
I'm not aware of any self cert mortgages being available since 2014.
Lenders will still give self employed a mortgage - but they'd soon find themselves in front of the regulator were they to go back to old style self cert. The MMR affects all mortgage loans - and self cert would breach all the new guidelines.
A
back in the day my estate agent filled the forms out with a pen stolen from william hill.
There was more truth in the fantasies&storys section on fab than those forms
they still do 'em just by another name "
I don't think so. Find me a lender that doesn't have to abide by the new legislation and I'll be impressed how they do it!
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11379368/Self-cert-mortgage-borrowers-stuck-on-high-rates.html
A few details in here for you.
A |
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By (user no longer on site)
over a year ago
|
Can only comment for personal experience - combined we earn around 47k
We wanted to buy our first home for 70k so thought ok 10% deposit = £7000
Needed a 16% deposit before the bank would touch us, put £10,500 down to get accepted.  |
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By *icky999Man
over a year ago
warrington |
"Halifax (HBOS) have a bank where by you can get denied a mortgage from Halifax but their subsidiary bank will authorise you a self cert mortgage
I'm not aware of any self cert mortgages being available since 2014.
Lenders will still give self employed a mortgage - but they'd soon find themselves in front of the regulator were they to go back to old style self cert. The MMR affects all mortgage loans - and self cert would breach all the new guidelines.
A
back in the day my estate agent filled the forms out with a pen stolen from william hill.
There was more truth in the fantasies&storys section on fab than those forms
they still do 'em just by another name
I don't think so. Find me a lender that doesn't have to abide by the new legislation and I'll be impressed how they do it!
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11379368/Self-cert-mortgage-borrowers-stuck-on-high-rates.html
A few details in here for you.
A"
they put young estate agents on a bonous and ask very few questions like they've allways done. Impressed?
Its not today's papers you want to read it the one in five years that reads " dodgy estate agents gave out mortgage s with bail out money in soup kitchen scandal" |
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By (user no longer on site)
over a year ago
|
"Halifax (HBOS) have a bank where by you can get denied a mortgage from Halifax but their subsidiary bank will authorise you a self cert mortgage
I'm not aware of any self cert mortgages being available since 2014.
Lenders will still give self employed a mortgage - but they'd soon find themselves in front of the regulator were they to go back to old style self cert. The MMR affects all mortgage loans - and self cert would breach all the new guidelines.
A
back in the day my estate agent filled the forms out with a pen stolen from william hill.
There was more truth in the fantasies&storys section on fab than those forms
they still do 'em just by another name
I don't think so. Find me a lender that doesn't have to abide by the new legislation and I'll be impressed how they do it!
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11379368/Self-cert-mortgage-borrowers-stuck-on-high-rates.html
A few details in here for you.
A
they put young estate agents on a bonous and ask very few questions like they've allways done. Impressed?
Its not today's papers you want to read it the one in five years that reads " dodgy estate agents gave out mortgage s with bail out money in soup kitchen scandal" "
Since when can estate agents approve mortgages? |
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By (user no longer on site)
over a year ago
|
"Can only comment for personal experience - combined we earn around 47k
We wanted to buy our first home for 70k so thought ok 10% deposit = £7000
Needed a 16% deposit before the bank would touch us, put £10,500 down to get accepted. "
My experience was I needed 15% before anyone would go near us when buying first house in 2008, and 20% for any decent rates to be available when moving last year. I think there's a very small number of 90% LTV mortgage products in the market but generally speaking 15% is the minimum for most people. |
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By (user no longer on site)
over a year ago
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"(one of your bikes must need something!)?
My bikes want for nothing..they are SUPERB!
"
They are indeed superb dude. Kwackers bullet proof and great to ride. Not in your class but do love a dirty ride every now and then lol
Mrs Stumpy also but not sure she was talking about the bike lol |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Since the estate agent put a 20p badge on that said mortgage advisor? "
And passed their CeMap qualifications (including a long spell of additional study regarding MMR) and was observed as being compliant by a qualified professional bedore being allowed to conduct interviews unaccompanied?
You do realise estate agents don't lend money? Nor do brokers? A 20p badge?Honestly?
Sorry - but this isn't 2005 anymore.
A |
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By (user no longer on site)
over a year ago
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Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage. |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage."
I think we should get 20p badges! 
A |
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By (user no longer on site)
over a year ago
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"Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage.
I think we should get 20p badges!
A"
I'm special, mine is a 30p badge |
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"Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage.
I think we should get 20p badges!
A
I'm special, mine is a 30p badge "
Bloody Hell! Is it gold-plated? I have to share half a post-it note with Mavis in Marketing
Mr ddc |
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By *icky999Man
over a year ago
warrington |
"Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage."
is it the bank or the legislation that decides? Because you've said both. |
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OP; don't ask how much can you get, but how much will you be able to afford once interest rates begin to go up again.
I worry that in a few years a lot of people are going to get a whole new financial shock. When they realise that the bargain of buying at the bottom of the cycle has its own special problems. |
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By (user no longer on site)
over a year ago
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"Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage.
is it the bank or the legislation that decides? Because you've said both. "
The bank is governed by the legislation. It makes its decision in accordance with the legislation. |
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By *icky999Man
over a year ago
warrington |
"Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage.
is it the bank or the legislation that decides? Because you've said both.
The bank is governed by the legislation. It makes its decision in accordance with the legislation. "
and the person who works in the estate agents, wearing a shirt an tie, selling mortgages but is not an estate agent still fills out the forms? |
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and the person who works in the estate agents, wearing a shirt an tie, selling mortgages but is not an estate agent still fills out the forms? "
He just fills out the forms and (possibly) gives advice.
Sometimes I wear a shirt and tie, doesn't mean I don't talk bollocks... |
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By (user no longer on site)
over a year ago
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"Even if the estate agent would agree to put in a mortgage application (in this fictional world where they can) the entire point of the MMR legislation was that it placed an affordability assessment requirement on the lender as well as the broker. The bank or building society are the one who actually get the say on whether they grant the mortgage.
is it the bank or the legislation that decides? Because you've said both.
The bank is governed by the legislation. It makes its decision in accordance with the legislation.
and the person who works in the estate agents, wearing a shirt an tie, selling mortgages but is not an estate agent still fills out the forms? "
He's probably a mortgage broker or independent financial advisor. So he (or she) would do an affordability assessment and provide examples of mortgage products that might be available to the applicant. In most cases they fill out the application and submit it to the lender (bank). The lender will do their own assessment and credit check and make the decision. It's for the lender to say if they accept that application and will give the applicant the mortgage.
If the broker sitting in the estate agent puts in applications for a load of unsuitable people then they'd be a bit shit at their job, but it's still the bank who makes the decision anyway. |
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By (user no longer on site)
over a year ago
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Read this post with interest, and there are some valid points
Due to the 'new' regulations it does take longer to go through the process, shouldn't be 4hrs tho! Lol
The banks CAN lend money, however they have (quite rightly in my opinion) tightened up the rules re the old income multiples. How was it ever sensible to lend over 100% of the value of the property?? It's no wonder there were problems with negative equity!
Sara x |
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By (user no longer on site)
over a year ago
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I have read some crazy points in this forum just to clear up: zero rate interest rates and qe most definatly does not cause deflation... It does the exact opposite it is an inflationary pressure... It causes an increase in the circular flow of money as is called demand push inflation...
Also mortgage lending is at a record high however so are bank requirements... Therefore if you fit the requirements getting a mortgage has never been easier... But the key is meeting the requirements |
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By (user no longer on site)
over a year ago
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"I have read some crazy points in this forum just to clear up: zero rate interest rates and qe most definatly does not cause deflation... It does the exact opposite it is an inflationary pressure... It causes an increase in the circular flow of money as is called demand push inflation...
Also mortgage lending is at a record high however so are bank requirements... Therefore if you fit the requirements getting a mortgage has never been easier... But the key is meeting the requirements"
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It doesn't in my opinion and I personally think economists like Steve keen are tearing up the original reasoning.
Because if it did cause inflation I dare say the uk, Europe and the US would have massive inflation seen as between them they've done around 5 trillion of QE and all have nearly zero interest rates, in fact Germany has already seen negative rates!!
It would cause inflation if that money was borrowed out but seen as the velocity of money(that's how many hands that money passes through) has crashed through the floor since 08.
Keeping alive dead banks with QE is doomed to fail, we'll still be here in twenty years just like Japan has been wondering why we can't get a proper economy!.
Those banks died in 08 and the problem is private debt not state debt! |
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By (user no longer on site)
over a year ago
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"Read this post with interest, and there are some valid points
Due to the 'new' regulations it does take longer to go through the process, shouldn't be 4hrs tho! Lol
The banks CAN lend money, however they have (quite rightly in my opinion) tightened up the rules re the old income multiples. How was it ever sensible to lend over 100% of the value of the property?? It's no wonder there were problems with negative equity!
Sara x"
My mortgage application took nowhere near 4 hours, even after the change in the legislation. It was an hour maximum, I came armed with all kinds of fancy spreadsheets about my income and expenditure and they weren't interested in any of them |
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I trained 3 high street banks staff last year on the new rules governing mortgages,the MMR and each case is assessed on its own merit based on a multiple of factors the main one been affordability and this affirdablity is also stress tested against a rise in interest rates to ensure even if / when the ages do rise you can still afford to stay in the property, interest only mortgages are virtually non existent donuts capital repayment pretty much all the way.
As for seeing an independent mortgage broker, no such thing, they all get procurement fees from lenders on their panel,the lenders pay to be on the panel , and as some won't pay because they have their own distribution channel you won't get access to those deals as you will need to go direct, Plus The brokers also get commission on any cross sales of protection |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Read this post with interest, and there are some valid points
Due to the 'new' regulations it does take longer to go through the process, shouldn't be 4hrs tho! Lol
The banks CAN lend money, however they have (quite rightly in my opinion) tightened up the rules re the old income multiples. How was it ever sensible to lend over 100% of the value of the property?? It's no wonder there were problems with negative equity!
Sara x
My mortgage application took nowhere near 4 hours, even after the change in the legislation. It was an hour maximum, I came armed with all kinds of fancy spreadsheets about my income and expenditure and they weren't interested in any of them "
It'll depend on a lot of factors.
Are you an existing customer? Is it a remortgage or a first application? Is it a sole or joint application? Are you looking to use the help to buy scheme or incorporate a third party (family etc) as a guarantor? If a simple rate switch then this can actually be done yourself, online, in a lot of cases with no involvement from an advisor.
More complex cases such as self employed, BTL and anything out of the ordinary will run into hours - rather than the old 'pop in on your lunchbreak and sign here' style applications of the past.
A |
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By (user no longer on site)
over a year ago
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"I trained 3 high street banks staff last year on the new rules governing mortgages,the MMR and each case is assessed on its own merit based on a multiple of factors the main one been affordability and this affirdablity is also stress tested against a rise in interest rates to ensure even if / when the ages do rise you can still afford to stay in the property, interest only mortgages are virtually non existent donuts capital repayment pretty much all the way.
As for seeing an independent mortgage broker, no such thing, they all get procurement fees from lenders on their panel,the lenders pay to be on the panel , and as some won't pay because they have their own distribution channel you won't get access to those deals as you will need to go direct, Plus The brokers also get commission on any cross sales of protection "
Of course they get commission and don't have access to every single deal, but for most people unless they've got time to approach every single lender, they'll get a better deal through a broker. This was certainly true for me. |
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By (user no longer on site)
over a year ago
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"Read this post with interest, and there are some valid points
Due to the 'new' regulations it does take longer to go through the process, shouldn't be 4hrs tho! Lol
The banks CAN lend money, however they have (quite rightly in my opinion) tightened up the rules re the old income multiples. How was it ever sensible to lend over 100% of the value of the property?? It's no wonder there were problems with negative equity!
Sara x
My mortgage application took nowhere near 4 hours, even after the change in the legislation. It was an hour maximum, I came armed with all kinds of fancy spreadsheets about my income and expenditure and they weren't interested in any of them
It'll depend on a lot of factors.
Are you an existing customer? Is it a remortgage or a first application? Is it a sole or joint application? Are you looking to use the help to buy scheme or incorporate a third party (family etc) as a guarantor? If a simple rate switch then this can actually be done yourself, online, in a lot of cases with no involvement from an advisor.
More complex cases such as self employed, BTL and anything out of the ordinary will run into hours - rather than the old 'pop in on your lunchbreak and sign here' style applications of the past.
A"
It wasn't a particularly complex case, admittedly, but it was a new mortgage on a new property, based on two incomes. The broker never even met the other applicant because he leaves money stuff to me. I didn't find it much different to when I'd applied for a mortgage in 2009.
I agree, the process is more in depth than it used to be, but the press at the time the change was introduced which was going on about them challenging phone contracts and gym memberships was total scaremongering. I was terrified I was going to be turned down because of my expenditure habits, but the bank didn't even want my bank statements in the end, they just looked at the incomes and any loans and credit arrangements. |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Read this post with interest, and there are some valid points
Due to the 'new' regulations it does take longer to go through the process, shouldn't be 4hrs tho! Lol
The banks CAN lend money, however they have (quite rightly in my opinion) tightened up the rules re the old income multiples. How was it ever sensible to lend over 100% of the value of the property?? It's no wonder there were problems with negative equity!
Sara x
My mortgage application took nowhere near 4 hours, even after the change in the legislation. It was an hour maximum, I came armed with all kinds of fancy spreadsheets about my income and expenditure and they weren't interested in any of them
It'll depend on a lot of factors.
Are you an existing customer? Is it a remortgage or a first application? Is it a sole or joint application? Are you looking to use the help to buy scheme or incorporate a third party (family etc) as a guarantor? If a simple rate switch then this can actually be done yourself, online, in a lot of cases with no involvement from an advisor.
More complex cases such as self employed, BTL and anything out of the ordinary will run into hours - rather than the old 'pop in on your lunchbreak and sign here' style applications of the past.
A
It wasn't a particularly complex case, admittedly, but it was a new mortgage on a new property, based on two incomes. The broker never even met the other applicant because he leaves money stuff to me. I didn't find it much different to when I'd applied for a mortgage in 2009.
I agree, the process is more in depth than it used to be, but the press at the time the change was introduced which was going on about them challenging phone contracts and gym memberships was total scaremongering. I was terrified I was going to be turned down because of my expenditure habits, but the bank didn't even want my bank statements in the end, they just looked at the incomes and any loans and credit arrangements. "
There's been a lot of horseshit in the press about affordability checks due to MMR - most of which is bollocks.
At the end of the day if you can clearly afford a mortgage (including a calculation including the effect of future rate rises), have a decent credit rating and a good employment history - you'll get a mortgage.
There may be a few more hoops to jump through to prove your ability to pay - but the banks are more than willing to lend.
The fact it was much easier in the past just shows how flawed the old systems were in terms of lending to those who could meet their commitments. People have always been quick to blame the lenders for the problems of the past - but don't forget the element of responsibility on the borrower too.
A |
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By (user no longer on site)
over a year ago
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"
There's been a lot of horseshit in the press about affordability checks due to MMR - most of which is bollocks.
At the end of the day if you can clearly afford a mortgage (including a calculation including the effect of future rate rises), have a decent credit rating and a good employment history - you'll get a mortgage.
There may be a few more hoops to jump through to prove your ability to pay - but the banks are more than willing to lend.
The fact it was much easier in the past just shows how flawed the old systems were in terms of lending to those who could meet their commitments. People have always been quick to blame the lenders for the problems of the past - but don't forget the element of responsibility on the borrower too.
A"
Totally agree. I know some people who had those 110% Northern Rock mortgages, they spent the 10% on holidays. It was totally ridiculous and I have no sympathy for them now that they can't move due to being in negative equity! |
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By (user no longer on site)
over a year ago
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"
I dare say the average wage in towns where the houses are 50k won't be 25k.
You'd be surprised, plus we also have roads n stuff if your job isn't next door.
It's not as grim oop north as we like to let you southerners believe
Rest of it was about right though "
.
Believe it or not, I'm Manchester born and bred .
We had a house in didsbury moved and rented in the seven years we lived in London and when we moved to Bristol that was only our second house purchase, were hoping to be in Bristol for quite a few years but I'd move back to Manchester tomorrow, Bristol is great, London was great but to me Manchester will always be home!. I've never bought into the softie southerner/hard northerner thing but there is a definite line around mk that Londoners consider Northeners from if your above it |
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By (user no longer on site) OP
over a year ago
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"There was a little snippet on the radio yesterday about credit rating being affected by your voter registration status. If you haven't registered to vote you get a lower rating.
"
It states as such on the form from the council re electoral register. |
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