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Debate House Prices
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Lenders still lending
mr.broderick
Posts: 3,778 Forumite
http://www.fool.co.uk/news/property-home/mortgages/2008/08/05/this-lender-will-offer-you-104000-more.aspx?source=uemfoleml0010038
Was surprised to read this today...Still 5 X salary out there it seems.
Was surprised to read this today...Still 5 X salary out there it seems.
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Comments
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It seems that the people responding to the piece disagree!
Even if the banks will lend what these calcualtors claim, it seems that it's only to people with plenty of equity - I'd lend an unlimited multiple of income to someone with enough equity as I could always repossess and get my money back.0 -
It seems that the people responding to the piece disagree!
Even if the banks will lend what these calcualtors claim, it seems that it's only to people with plenty of equity - I'd lend an unlimited multiple of income to someone with enough equity as I could always repossess and get my money back.
You are sounding more like !!!!!! every day gen....:rolleyes:0 -
An online mortgage calculator is a long way from a mortgage approval ...
No one said lenders aren't lending. If someone says this its usually a VI looking for someone to blame.
They aren't lending to risky people who will struggle to repay or will be at greater risk of suffering when facing negative equity.
If you can afford to pay a mortgage (shock horror), associated bills, feed yourself and have at least 10% deposit / equity, they will happily give you money.0 -
mr.broderick wrote: »You are sounding more like !!!!!! every day gen....:rolleyes:
Hmmmm.
I'd be very surprised if banks are lending 5x salary on a regular basis at the moment. I mean, why would you if you were a bank? Demand for borrowing>supply which is why prices (interest rates paid, not base rates) have risen. A big part of a bank's costs is risk so right now they can make more money by being picky about who they lend to.0 -
If they limit it to 2.5x salary, they can lend to twice as many people ... spread the risk further.0
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OH HECK. I do hope the madness isn`t going to start again. 5x times salary. Very sensible!!!!0
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So that rules out the "people can't get a mortgage" argument for prices dropping. So, unless there has been a radical change in population over the last few months, becoming more obvious that HPI was based entirely on cheap money...?0
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Sometimes, there is nothing wrong with 5x salary. It all depends on individual circumstances.
But it is not for idiots.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Oh yes it is.Gorgeous_George wrote: »But it is not for idiots.
GG0 -
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