Yesterday either Abbey or HSBC (I think it was Abbey) decided to let first time buyers borrow 5 times their annual salary to get the bottom end of the market going again.
Are they mental or what?? Repostions are high enough by these criminals allowing media corrupted "Must Haves" to borrow 3.5 times their annual salary.
It proves that the housing market is artificially held high by creating false wealth among the population.
I think the only way to get the market going at the first time buyer level is for people to say, Oi! Seller! NOOOOO! I will not pay rediculous money for your tine mouse cage of a house. Price it reasonably and I may return!
If we all, and I mean all, say we will not pay more than 50k for a 2 bed house / flat, then guess what price the market will come down to????
An attitude change towards home ownership is needed in this country.
Rant over, what do you think???
2006-11-01 22:26:54 · 13 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I say definitely NOT a good idea. First of all, I'm on just over £14000, the mortgage payments alone would take up over half my monthly wages. I would not dream of trying to get a mortgage that was five times my salary.
Property prices are ridiculous. I refuse to buy a titchy little place with my hard-earned money. I want to see something for it. The way it's going, first time buyers are going to have to do that 50% house share / own scheme. It'll be the only way for people to get onto the property ladder who don't earn a lot of money.
Locally, there are building houses in a rough area. Guess how much they start out at? £160000. No kidding. It goes to show you that the house builders do not take in the area they are in building in nor the population income either.
The whole country's going to pot!
2006-11-01 22:34:21 · answer #1 · answered by Melissa 2 · 0⤊ 0⤋
If you actually read the small print of these new mortgages then you can only have one if:
1. You have a 25% deposit
2. Your houshold income is £60,000+ a year
3. Your credit will be heavily scrutinised
4. As will you incomings and outgoings
Realistically, this isn't for the first time buyer - its for the well off business couple / family who are moving up the property ladder.
2006-11-02 06:30:54 · answer #2 · answered by MJFrog 2 · 0⤊ 0⤋
The banks just get you in hock ready for when they takeover the property. They know the market cannot sustain price levels and artificially held prices for ever, so they do something to keep it all going, of course if the market in the States is now "correcting", then guess what ? Look out U.K ! It is up to the man in the street not to get sucked in to "sweeter than wine" offers.
2006-11-02 09:45:06 · answer #3 · answered by Latin Techie 7 · 0⤊ 0⤋
i beleive it's so that first time buyers can get on the ladder however, the market is going to burst next year so there will be people who can't afford the repayments and more repossessions. By the end of next year it will be a buyers market so i would advise people to wait until early 2008 to buy a property.
2006-11-02 06:34:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I can't believe that this has only just come to light, i work in mortgages and loans and we work alongside a lender that has offered 5x income since they set up 3 years ago as a sister company to GMAC! This lender is an adverse lender aswell which makes it worse because even if you have been repossessed in the past you can still get it!
2006-11-02 06:34:55 · answer #5 · answered by Vicky 2 · 0⤊ 0⤋
I agree it's bad for two reasons.
It will help fuel property prices by enabling even higher asking prices to become attainable against higher borrowings.
It will only work whilst interest rates stay low. I agree that as interest rates have fallen the old multipliers have become out of date, but it never seemed to have held back property prices so no harm done.
As soon as interest rates rise, these borrowings will cripple!
2006-11-02 06:45:54 · answer #6 · answered by 'Dr Greene' 7 · 0⤊ 0⤋
Would you sell your house for less than 50k, I think you have answered your own question, the Abbey is giving people more chance to own there own house, so in one way it is a good idea but as you say repossession is high,
2006-11-02 06:31:35 · answer #7 · answered by Ivan 3 · 0⤊ 0⤋
crazy suggestion if you cant get a mortgage with a joint income of 50k then move to an area you can. dont work/live in london move to a cheaper area. why pay £250000 for a terrible small house there are plenty jobs houses north of london and plenty of nice houses have a better standard of living in a better area in a nicer outside london.
2006-11-02 08:40:01 · answer #8 · answered by jojo 4 · 0⤊ 0⤋
Very bad idea some people are struggling with the one they have now.
What happens if you borrow the maximum and the interest rate rises you will lose your house.
2006-11-02 07:47:03 · answer #9 · answered by Denny 3 · 0⤊ 0⤋
suggest thats fine, but 5 times 300 quid, is only 1500 of loan, suggest you get a better job
2006-11-02 06:30:43 · answer #10 · answered by The brainteaser 5 · 0⤊ 0⤋