Lord Geordie Posted September 9, 2016 Report Share Posted September 9, 2016 Bust my balls for ages to get a contract change, get more income coming into the house! In a view to secure a Mortgage! A few weeks ago I saw my HSBC adviser! I was very quickly shot down in flames when I was told they had a minimum income requirement of £15.000 a year! even on 40hr weeks I make under £15.000 :( So today I saw a mortgage adviser who didnt have a minimum income requirement! So placed my last three payslips on the table, plus my contract! He sets to on the PC and does the sums. The PC says I can't afford a Mortgage? When I pay MORE in flamin RENT than I would be with a mortgage repayment? I explained to him that the mortgage payments on borrowing £57000 would mean I would be £50 a month better off in the log run? I manage to pay my rent of £400 a month now with enough money to treat myself to a few non essentials and run a car etc! But for SOME reason the PC says I can't make a £320 a month mortgage payment! If I ran a quick sum of HALF my wage in 20 years would amount to £100.000 so if half my wage can pay for it almost twoce over? how can't it allow me a Mortgage? I am flippin gutted! Looks like a life of payments, with nothing at the end Quote Link to comment Share on other sites More sharing options...
Walker570 Posted September 9, 2016 Report Share Posted September 9, 2016 Always been weird. My wife and I applied for a mortgage with a building society .. oh back in the mid 80s. prior to that we had a rent free police house. I was a fully serving officer and my wife had a full time job and had saved with this society since she was a kid. Initially a lot of sucking and puffing but eventually they agreed. Things don't appear to have changed. In fact since the computer has taken over these deciding factors instead of a level head bank manager of the old school, it has got worse. I feel for you and hope you get to sort it. OK, owning your own home is not all roses because you suddenly realise that things need maintaining etc., at your expense but to be honest nothing beats it. Quote Link to comment Share on other sites More sharing options...
AVB Posted September 9, 2016 Report Share Posted September 9, 2016 (edited) Unfortunately lenders have to look at what the impact would be of interest rates increases. I am not sure I can come up with any suggestions but I will ask around. Chin up. Edited to add that it is not related to just income nowadays but to income and outgoings. Plus the risk of interest rate rises and plus a comfort factor. Edited September 9, 2016 by AVB Quote Link to comment Share on other sites More sharing options...
Davyo Posted September 9, 2016 Report Share Posted September 9, 2016 (edited) Best renting mate, 95% of the UK think they are making money but you got to sell it to make it.Plus at the moment you dont owe anybody anything.No body actually owns their own home until the day its paid off,the lender owns the property. And as far a new housing build go,just look at how many dont even have buyers and end up on the Letting scheme. I paid £9k for mine and paid it off 20yrs ago and friends keep saying your sitting ok.The fsct of the matter is its just a morg free house the bills dont go away and worth diddly squit until i decide to sell it.I laugh when i hear people blabbering on about equity when there is still a morg on the property.Mines worth nothing to me as it just a property,its not actual £'s in the bank if you know what i mean. Edited September 9, 2016 by Davyo Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted September 9, 2016 Report Share Posted September 9, 2016 Although you can afford it now, I think they account for a rise in the interest rates etc plus minus all your expenses, so if the interest rate did go up, and your expenses stayed the same, would you be able to afford it ? Quote Link to comment Share on other sites More sharing options...
winnie&bezza Posted September 9, 2016 Report Share Posted September 9, 2016 It's the deposit that most people fall short on. Quote Link to comment Share on other sites More sharing options...
TIGHTCHOKE Posted September 9, 2016 Report Share Posted September 9, 2016 Sorry to hear your bad news LG Quote Link to comment Share on other sites More sharing options...
NorfolkAYA Posted September 9, 2016 Report Share Posted September 9, 2016 Have you thought about changing your job LG?. Quote Link to comment Share on other sites More sharing options...
AVB Posted September 9, 2016 Report Share Posted September 9, 2016 FYI. The tightening of lending came about due to the implementation of the Mortgage Credit Directive (MCD) earlier this year. https://en.m.wikipedia.org/wiki/Mortgage_Credit_Directive Although it is EU legislation the UK regulators have dictated how UK lenders interpret it so please don't blame the banks! Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted September 9, 2016 Report Share Posted September 9, 2016 FYI. The tightening of lending came about due to the implementation of the Mortgage Credit Directive (MCD) earlier this year. https://en.m.wikipedia.org/wiki/Mortgage_Credit_Directive Although it is EU legislation the UK regulators have dictated how UK lenders interpret it so please don't blame the banks! Didn't it come about after the banks lent loads of people money for mortgages etc, interest rates rose and people couldn't afford them, then blamed the banks for "irresponsible lending" ? Quote Link to comment Share on other sites More sharing options...
figgy Posted September 9, 2016 Report Share Posted September 9, 2016 To be honest 26 years ago they made you jump through hoops and interest was at 15% for a while. It got stupidly easy for people to lend money with no real means of paying it back. Sure at the time it was three times your salary maximum. With a bit of luck you will find a better paying job and get on the ladder. If you have rented untill well into middle age your probably better off staying renting and in a local authority house. When you retire or are out of work you don't have to worry about a roof over your head. Quote Link to comment Share on other sites More sharing options...
dob Posted September 9, 2016 Report Share Posted September 9, 2016 What do you do for a living ? Quote Link to comment Share on other sites More sharing options...
bruno22rf Posted September 9, 2016 Report Share Posted September 9, 2016 No is only no for now ...banks have tightened up on lending but it's only a matter of time before the market becomes completely stagnant and the powers that be will release funds for the Banks to lend....bide your time and don't let it get you down, save every penny you can and you will get there. The bigger your deposit the better off you will be - you will get a better rate and save thousands in the long term. Quote Link to comment Share on other sites More sharing options...
Royal22lr Posted September 9, 2016 Report Share Posted September 9, 2016 LG have you explored the part rent part buy scheme most of It is on new builds. It's supposed to help people get on the property ladder. May be worth exploring. Good luck, don't give up. Malcolm Royal 22 lr. Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted September 9, 2016 Report Share Posted September 9, 2016 LG have you explored the part rent part buy scheme most of It is on new builds. It's supposed to help people get on the property ladder. May be worth exploring. Good luck, don't give up. Malcolm Royal 22 lr. Problem with new builds is they're expensive and over priced! Quote Link to comment Share on other sites More sharing options...
felly100 Posted September 9, 2016 Report Share Posted September 9, 2016 Trouble is it's not just the mortgage. Building,contents,critical illness,life insurance. Paying for your boiler,roof repairs etc. if you're buying an ex council house you would be better just renting a council house. Don't want to appear too negative but home ownership isn't for everybody. Quote Link to comment Share on other sites More sharing options...
team tractor Posted September 9, 2016 Report Share Posted September 9, 2016 Lg if I had the money I'd lend it you as after several meet ups I know your genuine. People who say rent are daft . I know when I'm 54 I'll be £550 a month better off . I know that's why your trying to do it Ignore the half rent /buy as you'll be stuck and paying double . I know someone paying £400 mortgage, £400 rent and grounds maintenance of £80 a month . It's a big con. Quote Link to comment Share on other sites More sharing options...
Davyo Posted September 9, 2016 Report Share Posted September 9, 2016 Its a 25/26 year commitment unless you can afford to over pay and knock years off.Plus jobs are no longer longterm and that redundancy/sickness cover(if affordable)only last 6 months.If your a proffesional and your in demand then you can move in and out of employment.However normal joe public may find themselves in serious debt and in morg arrears if faced with unemployment.Social security wont pay your morg, but they will assist with rent on rented accomadation. Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted September 9, 2016 Report Share Posted September 9, 2016 Lg if I had the money I'd lend it you as after several meet ups I know your genuine. People who say rent are daft . I know when I'm 54 I'll be £550 a month better off . I know that's why your trying to do it Ignore the half rent /buy as you'll be stuck and paying double . I know someone paying £400 mortgage, £400 rent and grounds maintenance of £80 a month . It's a big con. Yes except when your old you'll be responsible for the upkeep, for any mortgage that is left, for the bills, repairs, council tax, if you fall behind you could be evicted and when you are finally too old and have to go into a care home they can ask you to sell the property now to contribute to the cost of your care, as it is terribly expensive. With a rented property off the council when your old they will do all the upkeep, you don't have to worry about rent, they are responsible for it. Some people are genuinely better off renting! Quote Link to comment Share on other sites More sharing options...
Dannyboy220 Posted September 9, 2016 Report Share Posted September 9, 2016 Not sure if you're self employed but a mate of mine worked for a firm but was employed by and agency. (Some tax dodge no doubt) it was full time employment on the gas network. When he went to get a mortgage his wage slip sect only showed around £13k income, he was on £30k plus. Anyway my mortgage guy who is a top bloke couldn't help him. Halifax turned out to be the best option he hot a good rate, no hassle and they understood his wage situation. Not sure if it will kelp you but they may be worth a chat. Quote Link to comment Share on other sites More sharing options...
Longbower Posted September 9, 2016 Report Share Posted September 9, 2016 A Multi millionaire, once said , "Everything from Houses to women are better off being rented " ! Its tough trying to get on the housing ladder now, my son is trying and its not easy. Best of luck ! Quote Link to comment Share on other sites More sharing options...
team tractor Posted September 9, 2016 Report Share Posted September 9, 2016 (edited) Yes except when your old you'll be responsible for the upkeep, for any mortgage that is left, for the bills, repairs, council tax, if you fall behind you could be evicted and when you are finally too old and have to go into a care home they can ask you to sell the property now to contribute to the cost of your care, as it is terribly expensive. With a rented property off the council when your old they will do all the upkeep, you don't have to worry about rent, they are responsible for it. Some people are genuinely better off renting! The way I look at it is when I'm dead . My kids will inherit a lot of money which will set them up for life. My house is £200 a month more to rent than buy too. As far as I'm aware you still get to pay council tax when your retired ( please correct if I'm wrong ) you pay all the same bills but minus the rent. My other half will inherit nothing as her dad rents but I'll be looking £500,000 in 10/20 years which no doubt willpower toward buying my children's houses . I would rather have my parents 110% but it'll help plus I look at they can release equity when they finally retire to live off . Currently the house is worth £1000 a month rent so I hope they can live in their holiday home and live off the rent. Personally I've told them to spend the lot. Edited September 9, 2016 by team tractor Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted September 9, 2016 Report Share Posted September 9, 2016 The way I look at it is when I'm dead . My kids will inherit a lot of money which will set them up for life. My house is £200 a month more to rent than buy too. As far as I'm aware you still get to pay council tax when your retired ( please correct if I'm wrong ) you pay all the same bills but minus the rent. My other half will inherit nothing as her dad rents but I'll be looking £500,000 in 10/20 years which no doubt willpower toward buying my children's houses . I would rather have my parents 110% but it'll help plus I look at they can release equity when they finally retire to live off . Currently the house is worth £1000 a month rent so I hope they can live in their holiday home and live off the rent. Personally I've told them to spend the lot. In 10/20 years the government may take the house to fund their elderly care needs. It is already going this way as people are expected to contribute to their care. Care homes and nursing homes are expensive and with cuts cuts cuts their isn't enough money. At the moment I believe you have to sign house / assets over 7 years before they pass to possibly avoid this (Plus hefty inheritance taxes). Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted September 9, 2016 Author Report Share Posted September 9, 2016 I simply wanted to make sure Chris does not have to struggle as he gets older! With his health issues, I want to make sure he is taken care of, if and when, anything were to happen to me! I work as a warehouse/stores man FLT driver. Earning NLW which on my contract equates to around £11500 a year! My rent and CT combined is around £500 leaving £300 per month to pay my other bills! Electricity works out around £20 per month, has £5 per month, water is £35 per month. Food I shop about! Car insurance, tax is £30 combined! So still have around £100 - £150 per month disposable income! Quote Link to comment Share on other sites More sharing options...
silver pigeon69 Posted September 9, 2016 Report Share Posted September 9, 2016 (edited) i dont see how any one can say renting is better than buying??? For one the mortgage repayments are generally lower than the rent. In ten years time your mortgage repayments will still be approx the same or lower as they are today, your rent will be almost double. Property prices are increasing and in 10+ years time your property will be worth 20%+ more than you paid for it. With the increase in population/immigration etc, houses are becoming more in demand, the more demand, that the supply CANNOT keep up with, can only mean prices increase, both buying and renting! When you retire, do you think the state will give you a nice little bungalow, with garden etc?? Or will they stick you in a tiny little flat in a high rise with no pets allowed etc. If there still is a benefits system as we know it in 15+ years! If buying was not a good deal, why would there be so many Buy to let, policies and properties out there? If your paying rent you are probably paying off someones mortgage and their bricks and mortor pension! Note to op: If you were to buy a property as a "Buy to Let", they are a lot more lenient on income as the potential rental income is the main factor! The interest is 1% higher than normal rates.so will cost you more, but you could get it on interest only? You could then rent it to your "Friend/Partner " for a few years and then change it to your main residence. Edited September 9, 2016 by silver pigeon69 Quote Link to comment Share on other sites More sharing options...
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