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Mortgage lending at lowest level in a decade
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=8374		 Page 1 of 1
Author:  Amnesia10 [ Fri May 21, 2010 1:06 pm ]
Post subject:  Mortgage lending at lowest level in a decade
http://www.telegraph.co.uk/finance/pers ... ecade.html

Quote:
Mortgage lending slumped to its lowest level for the month in a decade as experts warned of an on-going credit “drought” that threatens the property recovery.

It was overvalued to start with so maybe this will bring a sense of reality to the market?

Quote:
“To reignite any progress in the housing market, lenders need to meet the growing demand from wannabe first-time buyers with affordable mortgages. Would-be first-timers are being forced to stay in rented accommodation or live with parents for longer than ever to scrape together enough cash for deposits.”

So now they want first time buyers after practically shutting them out for years. :shock:
Author:  pcernie [ Fri May 21, 2010 2:17 pm ]
Post subject:  Re: Mortgage lending at lowest level in a decade
I know of couples in their early 30s where each partner basically has no option other than to live at home with their respective parents - even renting would see them have little disposable income at the end of the month, unless they wanna wait God knows how long on a council house...
Author:  Amnesia10 [ Fri May 21, 2010 2:44 pm ]
Post subject:  Re: Mortgage lending at lowest level in a decade
Exactly proving my point that house prices have got out of touch with reality. In the 70's people needed to save to get a mortgage but it was affordable, House prices were sensible and mortgage rates while higher than now were affordable if you did not over extend yourself.
Author:  TheHobgob [ Fri May 21, 2010 6:22 pm ]
Post subject:  Re: Mortgage lending at lowest level in a decade
It depends what your buying though, don't get me wrong house prices are ridiculously high.

Me and the GF will be looking at getting a place next year, you can get a decent enough starter property in most suburban areas for 120k, which would equate to a minimum 12k deposit and a 25 year mortgage at £772pm (at a relatively high, for the minute, 7%).

Increase that to a 35 year term being offered by most banks and that's £695pm.

Taking the 25 year term that would leave the couple, based upon earning figures of £17k per person with income minus mortgage of £1472, making the proposition tight but certainly manageable.

It all depends what you want from life.
Author:  pcernie [ Fri May 21, 2010 8:20 pm ]
Post subject:  Re: Mortgage lending at lowest level in a decade
TheHobgob wrote:
It depends what your buying though, don't get me wrong house prices are ridiculously high.

Me and the GF will be looking at getting a place next year, you can get a decent enough starter property in most suburban areas for 120k, which would equate to a minimum 12k deposit and a 25 year mortgage at £772pm (at a relatively high, for the minute, 7%).

Increase that to a 35 year term being offered by most banks and that's £695pm.

Taking the 25 year term that would leave the couple, based upon earning figures of £17k per person with income minus mortgage of £1472, making the proposition tight but certainly manageable.

It all depends what you want from life.


It'd be tight and manageable alright if you were sensible, but any sort of personal misfortune could see it all being for nothing if the bank isn't understanding. And your household bills and just trying to make the place look semi-respectable?... :(

This country is gonna wind up the way Italy has (supposedly), with a bunch of 'kids' still living at home when they're 40, though at least they have something of a cultural excuse :evil:
Author:  Amnesia10 [ Fri May 21, 2010 10:26 pm ]
Post subject:  Re: Mortgage lending at lowest level in a decade
TheHobgob wrote:
It depends what your buying though, don't get me wrong house prices are ridiculously high.

Me and the GF will be looking at getting a place next year, you can get a decent enough starter property in most suburban areas for 120k, which would equate to a minimum 12k deposit and a 25 year mortgage at £772pm (at a relatively high, for the minute, 7%).

Increase that to a 35 year term being offered by most banks and that's £695pm.

Taking the 25 year term that would leave the couple, based upon earning figures of £17k per person with income minus mortgage of £1472, making the proposition tight but certainly manageable.

It all depends what you want from life.

Well under old building society rules you would have been refused a mortgage. Even though you have deposit your combined incomes are not enough to support the mortgage. You and your GF combined income would only support a mortgage of £84 000 and your deposit £12000 and you have a maximum property value of £96 000. That is much more sustainable, and shows how overpriced homes are in your area. The problem has been governments have also taken advantage of this situation. With house prices rising people felt wealthier, making them happier. It increased government income from housing in stamp duty, and creates jobs in the FIRE (Finance, Insurance and Real Estate) industries all of which pay taxes. The problem in government was that no one thought why we had these rules and blocked the deregulation of the finance industries.
Author:  TheHobgob [ Fri May 21, 2010 10:41 pm ]
Post subject:  Re: Mortgage lending at lowest level in a decade
Well under old building society rules you would have been refused a mortgage. Even though you have deposit your combined incomes are not enough to support the mortgage. You and your GF combined income would only support a mortgage of £84 000 and your deposit £12000 and you have a maximum property value of £96 000. That is much more sustainable, and shows how overpriced homes are in your area. The problem has been governments have also taken advantage of this situation. With house prices rising people felt wealthier, making them happier. It increased government income from housing in stamp duty, and creates jobs in the FIRE (Finance, Insurance and Real Estate) industries all of which pay taxes. The problem in government was that no one thought why we had these rules and blocked the deregulation of the finance industries.[/quote]

How old are we talking here, it has been a minimum of 10% for as long as I can remember (not that long :lol:). We will most likely be presenting a deposit of around 15% anyway not 10%, unless we decide to purchase a property of the £135-£140 bracket. Using banks online mortgage calculators some have offered a mortgage of up £170K, now that is ridiculous.

Plus, figures crossed we earn more than £34k combined anyways!
Author:  Amnesia10 [ Sat May 22, 2010 11:10 am ]
Post subject:  Re: Mortgage lending at lowest level in a decade
It is not the deposit that would have been a problem but your combined incomes. They would not have been enough to support the mortgage.
Author:  TheHobgob [ Sat May 22, 2010 6:35 pm ]
Post subject:  Re: Mortgage lending at lowest level in a decade
Amnesia10 wrote:
It is not the deposit that would have been a problem but your combined incomes. They would not have been enough to support the mortgage.


Who needs pie.
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