Psycho Warren

iTrader: (5)

so what happens these days with renewals now theyve toughened up the criteria???

Does it mean you basically get stuck with your old deal forever??

For example when i got my mortgage i took out a 100% loan on an £86k but i was earning £48k PA so thats barely twice my wage...........

now im earning £13k PA so on renewal in 4 years im not expecting to have paid off a massive percentage of capitol say £75k balance to pay. so for renewal id be looking for a deal on 100% (house price drops) but on 5 times my current wage

or is criteria slightly different for renewals??

Chip

iTrader: (3)

If you have a 40% deposit, then if you find a decent IFA you WILL get a mortgage, as like jonnyb says, they have enough equity not to care much if you are good for it.

Chip

iTrader: (3)

You're fucked there essentially mate, you could easily find yourself unable to get a mortgage at all.

Psycho Warren

iTrader: (5)

so basically id be stuck with current deal??? they wouldnt be able to cancel credit agreement because my circumstances have changed then?? (as long as i keep paying!!)

Chip

iTrader: (3)

Yes mate, providing you dont get to the end of the term.

Psycho Warren

iTrader: (5)

still got another 24 years left on the term oh well

cjwood555

All well and good, but with rental prices currently working out to the same as or more than a mortgage for the same property (thanks largely to the boom in but-to-let landlords which came with the rising prices), it's very hard to save at a significant rate, if at all.

Another issue which is often not considered is that if somebody has been finding the money for their rent, bills etc, swapping the word rent for 'mortgage payment' doesn't suddenly make the amount unaffordable!!

Chris

Chip

iTrader: (3)

No, but an interest rate rise (which lets face it IS coming relatively soon, certainly well before the end of the mortgage term) may well make it unaffordable.
There needs to be a significant amount of headroom between what you pay and what you can afford if you are going to weather that sort of thing.

cabrio zo

Your best bet is to actually go and talk to a mortgage advisor and give them all your details, I talked to a Countrywide advisor in a local estate agents (they do have special rates from preferred companies but can search outside of those too) they can then tell you exactly what you could be lent

I earn a little over £20k - if I was to purchase £100k house with a 15% deposit they would be willing to lend me £95k (although with 15% dep I wouldn't need that much) at a better rate than a lower deposit (over 30 years) with only 10% dep they wouldn't lend me enough to purchase £100k place (only around £76k)

Had our house valued and allegedly house prices have fallen back to 2004, almost back down to what we bought it for (we've lost around £25-£30k value that built up over last 5 years, luckily still have some equity though)

Z

Phil

iTrader: (1)

I think people can really afford to borrow more than 3x their salary,

For example, earn 30k, borrow 140k (4.2x) over 30 years on 5% fixed, repayments are £750 a month, which after council tax and bills means you are still going to have £500 a month to spend on whatever. And thats not taking into account a partners income which would add another £1000+ spending money a month...

cabrio zo

This is quite a good calculator

http://www.fool.co.uk/mortgages/mort...alculator.aspx

Chip

iTrader: (3)

If you could fix for 30 years then I agree, I dont see any lenders offering a 30 year fix though?

Psycho Warren

iTrader: (5)

Youve not "lost" anything as you never had that money as it never really existed. you can only ever actually loose or make money on a house when you sell it. I notice a lot of people are worried because 10's of thousands have been wiped off thier houses value. Surely its only an issue if you need to move house.

Rab

I got approved for a 90% mortgage on Monday. Was only just over 2x my salary though, from the Goverment Owned Royal Bank Of Scotand.

I'm hoping to save a bit more between now and doing the deal to make it 85% to drop the interest rate a bit. All in it's pretty reasonable, and is the same as I'm paying to rent. Which is nice. I reckon in 12 months I'll be back in the rusty ford game, as I'm not moving house again for 10 years

Psycho Warren

iTrader: (5)

nice one rab!!

Rab

Cheers buddy, all I have to do now is find a flat/house thats not crap

STEVEST24

When I took mine out few years back, bank had a rough calculator which took into account all your income and then outgoings. So you take into account all debts, estimated bills, car expenses etc.
Also, they also liked you to have 10-20% spare salary each month for unexpected surprises or mortgage rises.
For me, this was a more realistic calculator for what I could afford rather than just saying X times your salary.
If they had religiously stuck to 3 times salary then I wouldn't of got a mortgage!

Ginge !

and this is why house prices have continued to rise, the banls loan more money meaning they earn more interest than they would then when it all goes tits up the banks got bailed out and us poor cunts still have to pay off the bad debts given by banks that made the house prices rise soo soo soo much

sticking to the 3 year rule would mean house prices drop again,,,, though loads of people with 100% morgages would be fucked big time !

the thing about the karge deposits mean that theres gonna be less first time buyers,,,, not a issue i hear you all cry,,,,,,, but who do you think is at the start of the chain when you buy your new home ?


i love all these people looking at the cash rise in there property,,,,, even though its pointless as you would have to spend MORE money to get a bigger place,,,, aswell as the fees too and taxes meaning you dont earn a penny as such and end up with a higher debt over all

fuzzy

dont look at new builds then, theyre all crap with no corner left uncut.

Rab

Tell me about it mate Besides the fact all the new builds round where I live are hopelessly overpriced becuase they already borrowed the money to build them and can't drop the prices to suit the new market. 130k for a flat? They must be on drugs