We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Cautious Coventry BS re-enters the 90% market.

245

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Really2 wrote: »
    There seems to be 10 90% LTV deals now ranging from 3.89%(2 year tracker) to 6.59%(10 year fixed).

    I am surprised there are so many already.

    Why?

    Providing the borrower is lent money on a sensible income multiple and the mortgage is on a repayment basis. Then the market has returned to normal.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    Why?

    I did not think 90% LTV would be back until next year at reasonable rates (mainly due to house prices and restricted lending)

    Looks like FTB lending will be increasing, don't get me wrong I am happy it is perhaps we will now have drops over winter and then the stability that is required to make things work properly again.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Really2 wrote: »
    I did not think 90% LTV would be back until next year at reasonable rates (mainly due to house prices and restricted lending)

    Looks like FTB lending will be increasing, don't get me wrong I am happy it is perhaps we will now have drops over winter and then the stability that is required to make things work properly again.

    Lenders can still cautious on valuations and very tight on applications to constrict supply. The Coventry caps loans at a max £250k.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    Lenders can still cautious on valuations and very tight on applications to constrict supply. The Coventry caps loans at a max £250k.

    The majority of houses I would say are under £250K over the UK as a whole. That is almost certainly going to be true for FTB's.

    That would be a £275K purchase price for a first property!!!!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Really2 wrote: »
    The majority of houses I would say are under £250K over the UK as a whole. That is almost certainly going to be true for FTB's.

    That would be a £275K purchase price for a first property!!!!

    A very average 3 bed in St Albans can cost nearly £400k. So in some areas not a lot in terms of actual property.

    Agree FTB's would buy cheaper property than this.

    Houses are cheaper than the national average here, but salaries are nearer £18k - £20k pa for the majority. So 90% would afford you at best a flat or a small house (in a not so desirable area).
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 1 October 2009 at 1:18PM
    Thrugelmir wrote: »
    A very average 3 bed in St Albans can cost nearly £400k. So in some areas not a lot in terms of actual property.

    Agree FTB's would buy cheaper property than this.

    Houses are cheaper than the national average here, but salaries are nearer £18k - £20k pa for the majority. So 90% would afford you at best a flat or a small house (in a not so desirable area).

    the averages across the UK would fit in quite comfortably in the criteria to get this mortgage

    Land Registry £155,968
    Nationwide £160,224
    Halifax £160,973
  • HammersFan
    HammersFan Posts: 344 Forumite
    The Coventry are very conservative lenders, and in my experience as a customer they play fair. The move fast and are easy to deal with. I read somewhere they only re-possessed about 50 houses last year...which in part reflects their decent judgement about risk in the mortgage market.
    18 May 2007 (start of Mortgage):
    Coventry Offset Mortgage £220800
    Offset Savings: £0
    Mortgage Balance: £220,800

    14 Jan 08
    Coventry Offest Mortgage: 219002
    Offset Savings: 28200
    Mortage Balance: £190802

    And still chucking every spare penny into it!
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    HammersFan wrote: »
    The Coventry are very conservative lenders, and in my experience as a customer they play fair. The move fast and are easy to deal with. I read somewhere they only re-possessed about 50 houses last year...which in part reflects their decent judgement about risk in the mortgage market.

    they are a tough lender to please...

    they recently had a 3.99% five year fix for BTL that you needed 50% LTV.
    a great rate but very difficult to get them tick all the lending criteria boxes to lend you the money.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 1 October 2009 at 1:29PM
    chucky wrote: »
    the averages across the UK would fit in quite comfortably in the criteria to get this mortgage

    Land Registry £155,968
    Nationwide £160,224
    Halifax £160,973

    I doubt that very much. First stumbling block would be the deposit needed.

    However, if you are talking about a 10% deposit. The stumbling block on that would be the salary needed.

    The third stumbling block is that averages do not take into account familes with a single worker and a parent at home to look after the kids. The parent at home looking after the kids does not even register on the stats. So for most families, the "average" is a lot higher than what they actually live from.

    Household income is probably the best indicator, and average of that is 28k I believe.

    That, does not fit into what you said above.
  • silvercar
    silvercar Posts: 49,996 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I don't agree the Coventry is cautious. The may be "tlc not plc", a sop to the fact they are a building society still, but they have a broker only arm trading under the Godiva name which is heavily exposed to the BTL market.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.3K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601.1K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture