AVB Posted August 31, 2017 Report Share Posted August 31, 2017 yes i remember self cert and 110% mortgages ,however sitting in on my daughters meeting with an adviser the affordability question wasnt really raised except for her other half £500 a month car loan . That wasn't my experience with HSBC. They went through my bank statement with a fine tooth comb and actually initially rejected me despite it only being a mortgage of 1x sole salary and LTV of about 20%. It seems they made a few mistakes in assuming that certain one-off bills were monthly. It went through in the end. Quote Link to comment Share on other sites More sharing options...
Twistedsanity Posted September 1, 2017 Report Share Posted September 1, 2017 Affordability checks are a joke, I had one two years ago and took an hour. I could have told him anything. I know people who've been approved huge mortgages by using a bonus they may not get as extra income. we moved a few years back and "ported" our existing mortgage, it was less than 90k and nothing had changed apart from the address and the new property having a few hundred grand more equity and the entire process was so long winded and invasive it was bordering on ridiculous Quote Link to comment Share on other sites More sharing options...
silver pigeon69 Posted September 1, 2017 Report Share Posted September 1, 2017 yes i remember self cert and 110% mortgages ,however sitting in on my daughters meeting with an adviser the affordability question wasnt really raised except for her other half £500 a month car loan . Who was that with? i presume it was a broker and not a bank?? Wait till the the bank starts asking questions! We have a telephone interview with the bank every two years asking all sorts of questions. Most of the banks want to know how many times you have your hair cut, eat out,gym membership etc etc. They go through yours/wifes bank statements and want to know what this outgoing was for etc. Quote Link to comment Share on other sites More sharing options...
Dellbert Posted September 1, 2017 Report Share Posted September 1, 2017 Who was that with? i presume it was a broker and not a bank?? Wait till the the bank starts asking questions! We have a telephone interview with the bank every two years asking all sorts of questions. Most of the banks want to know how many times you have your hair cut, eat out,gym membership etc etc. They go through yours/wifes bank statements and want to know what this outgoing was for etc. yeh i know i was a little suprised but maybe the brokers are back using the 'back door' approach Quote Link to comment Share on other sites More sharing options...
silver pigeon69 Posted September 1, 2017 Report Share Posted September 1, 2017 yeh i know i was a little suprised but maybe the brokers are back using the 'back door' approach Hope so!! I would never have got on the ladder otherwise! Quote Link to comment Share on other sites More sharing options...
Jason_ox Posted September 1, 2017 Report Share Posted September 1, 2017 yeh i know i was a little suprised but maybe the brokers are back using the 'back door' approach Yes this is true, friends used a broker to get a mortgage when no highstreet bank would give them one due them both being self employed at the time. I'd like to know the in and outs of it Quote Link to comment Share on other sites More sharing options...
team tractor Posted September 1, 2017 Report Share Posted September 1, 2017 .. Quote Link to comment Share on other sites More sharing options...
Muddy Funker Posted September 1, 2017 Report Share Posted September 1, 2017 That's why I moved away from south england to north east scotland.Selling - 2 bed end terrace, nice area/road ect £305K (ridiculous!) Buying - 3 bed detached, multiple outbuildings and 18 acres 315KNo brainer really. Quote Link to comment Share on other sites More sharing options...
Dellbert Posted September 1, 2017 Report Share Posted September 1, 2017 I am thinking seriously of down sizing and moving away except for the fact my business is here so until i retire i am kind of stuck . Quote Link to comment Share on other sites More sharing options...
Mice! Posted September 1, 2017 Report Share Posted September 1, 2017 Watching location last night, think it was a two bed flat 1950s couple buying first property after renting it was £320k I think, somewhere down south we only saw second half of prog. They were chuffed but we couldn't believe it, I'll never figure out how there is such a difference around country. Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted September 1, 2017 Report Share Posted September 1, 2017 Scary thought mortgages now availaible at 4.75 times joint income up to 95% of the house value ,now the clock is ticking Doesnt really matter how much more the house is worth than the salary what matters is the affordability every month and at current interest rates you can afford 4.75 times you salary. Problem will come when interest rates start creeping up again but that shows no signs of happening anytime soon or at such a rate we are all going to be in the do do again. Back when interest rates were 15% a £1000 a month payment meant £85,000 mortgage, now with rates at 4% you can still pay £1000 a month but have a mortgage for 200,000. this is over 25 year term. Quote Link to comment Share on other sites More sharing options...
AVB Posted September 1, 2017 Report Share Posted September 1, 2017 Doesnt really matter how much more the house is worth than the salary what matters is the affordability every month and at current interest rates you can afford 4.75 times you salary. Problem will come when interest rates start creeping up again but that shows no signs of happening anytime soon or at such a rate we are all going to be in the do do again. Back when interest rates were 15% a £1000 a month payment meant £85,000 mortgage, now with rates at 4% you can still pay £1000 a month but have a mortgage for 200,000. this is over 25 year term. Which is why banks now look at affordability rather than just salary. This changed as part of Mortgage Credit Directive in 2014. Surprised that that isn't being done by brokers. Quote Link to comment Share on other sites More sharing options...
BrowningB525 Posted September 1, 2017 Report Share Posted September 1, 2017 Which is why banks now look at affordability rather than just salary. This changed as part of Mortgage Credit Directive in 2014. Surprised that that isn't being done by brokers. If a broker didn't offer a product, they wouldn't get their commission. I'm sure they should. Our broker (before the relationship broke down and we cancelled their product) went through our bank statements. I'd assume others do too. Although I'd expect the lender to still do some due diligence and affordability checks as well. Interestingly, I went with first direct and theI'd main concern was 10 20p transactions in a short space of time. Not the big stuff. (I was ordering speed camera updates for my Sat nav from the polish TomTom website a year at a time). Quote Link to comment Share on other sites More sharing options...
oowee Posted September 1, 2017 Report Share Posted September 1, 2017 I borrowed 100k to mine and I don't earn 25k a year , try closer to 20k and I manage easily. £100k is only £550 a month so easily paid off and that's only over 18 years. My house to rent is £800 a month Now that is a good move. Worth doing buy to let at those figures. I went to look at a 1 bed apartment about 1200sqft on Bristol Harbour and it was £750k. There are many (several thousand) apartments around the harbour side for £500k+ I do wonder where people get the money from to buy. My son has been lucky buying a house off his mum but not everyone is so fortunate. Quote Link to comment Share on other sites More sharing options...
BrowningB525 Posted September 1, 2017 Report Share Posted September 1, 2017 Now that is a good move. Worth doing buy to let at those figures. I went to look at a 1 bed apartment about 1200sqft on Bristol Harbour and it was £750k. There are many (several thousand) apartments around the harbour side for £500k+ I do wonder where people get the money from to buy. My son has been lucky buying a house off his mum but not everyone is so fortunate. 1200 sqft is a massive 1 bed apartment. Quote Link to comment Share on other sites More sharing options...
yod dropper Posted September 1, 2017 Report Share Posted September 1, 2017 Just one or two hikes in interest rates which I could see coming in the medium rather than short term and I think it will all be a different matter. Quote Link to comment Share on other sites More sharing options...
team tractor Posted September 1, 2017 Report Share Posted September 1, 2017 Now that is a good move. Worth doing buy to let at those figures. I went to look at a 1 bed apartment about 1200sqft on Bristol Harbour and it was £750k. There are many (several thousand) apartments around the harbour side for £500k+ I do wonder where people get the money from to buy. My son has been lucky buying a house off his mum but not everyone is so fortunate. I'm living in it and having a cheap life style Quote Link to comment Share on other sites More sharing options...
yod dropper Posted September 2, 2017 Report Share Posted September 2, 2017 we moved a few years back and "ported" our existing mortgage, it was less than 90k and nothing had changed apart from the address and the new property having a few hundred grand more equity and the entire process was so long winded and invasive it was bordering on ridiculous I'd like to think Jeremy Corbyn will tax this sort of unearned income to make society fairer and more equal. Quote Link to comment Share on other sites More sharing options...
button Posted September 2, 2017 Report Share Posted September 2, 2017 I'd like to think Jeremy Corbyn will tax this sort of unearned income to make society fairer and more equal. Is this meant as a joke? Quote Link to comment Share on other sites More sharing options...
Dellbert Posted September 2, 2017 Report Share Posted September 2, 2017 I'd like to think Jeremy Corbyn will tax this sort of unearned income to make society fairer and more equal. They do its called stamp duty and VAT on fees Quote Link to comment Share on other sites More sharing options...
silver pigeon69 Posted September 2, 2017 Report Share Posted September 2, 2017 I'd like to think Jeremy Corbyn will tax this sort of unearned income to make society fairer and more equal. So that property developers/landlords wont invest in new developements, so no new houses. so a bigger demand for existing houses, so a greater increase in house prices and increased rents!!! Great plan, are you Dianne Abbott in disguise or related to her?? Quote Link to comment Share on other sites More sharing options...
Mungler Posted September 2, 2017 Report Share Posted September 2, 2017 I'd like to think Jeremy Corbyn will tax this sort of unearned income to make society fairer and more equal. If people have unearned income via a pension they get tex relief and are to be applauded for their financial good sense and planning for a retirement. Likewise, people who put money into a government approved ISA get tax relief and are encouraged to save this way for a rainy day. I invest in a property to make some money (do bear in mind the above examples) and all of a sudden the terminology changes - that house I bought to rent out and with an eye open to capital growth / appreciation is now referred to as 'a second home' (despite the fact I'll never live there) and the government are now looking to tax the life out of my investment. Quote Link to comment Share on other sites More sharing options...
silver pigeon69 Posted September 2, 2017 Report Share Posted September 2, 2017 They do its called stamp duty and VAT on fees + income tax on unearned income at a higher rate! Quote Link to comment Share on other sites More sharing options...
yod dropper Posted September 2, 2017 Report Share Posted September 2, 2017 (edited) Is this meant as a joke? It is. But please don't blame me if it's in the next manifesto. "There was this great idea I found on PW...." Edited September 2, 2017 by yod dropper Quote Link to comment Share on other sites More sharing options...
Dellbert Posted September 2, 2017 Report Share Posted September 2, 2017 If people have unearned income via a pension they get tex relief and are to be applauded for their financial good sense and planning for a retirement. Likewise, people who put money into a government approved ISA get tax relief and are encouraged to save this way for a rainy day. I invest in a property to make some money (do bear in mind the above examples) and all of a sudden the terminology changes - that house I bought to rent out and with an eye open to capital growth / appreciation is now referred to as 'a second home' (despite the fact I'll never live there) and the government are now looking to tax the life out of my investment. I'm in a similar position I pay stamp duty to buy ,tax on the income , and capital gains when i sell . So maybe i should sell up spend the cash and let the state keep me ...... Quote Link to comment Share on other sites More sharing options...
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