Why the intolerance of other people's views?

londonlandlady

Gangstabird wrote: »

LondonLandlady,

They will only give you 4 x income with a huge deposit. That is what we are trying to say. 100% mortgages are no more sweetie. There are still mortgages but not the same as you could get 2 years ago. The banks are being a bit more picky sweetie.

I put down an (imaginary) 10% deposit in both cases (the minimum requirement for Lloyd's). Even I was surprised to see Lloyds offer me almost 5x income - the media are currently suggesting that no credit at all is available. In other words, substantial mortgages are available even in the depths of the credit crunch. Don't believe the hype.

macaque_2

londonlandlady wrote: »

I have been lurking on this forum and am appalled at how anyone with anything positive to say about house prices is immediately shouted down. House prices will bounce back, just like they always do. In fact, savvy investors are already starting to snap up bargains. A lot of people seem to be harbouring jealousy and bitterness at the financial success which has been enjoyed by canny property investors over the last decade.

Property bulls do not get 'shouted at' but people who post rubbish must expect criticism. Your opening remarks about 'people being shouted at' was an attempt to preempt criticism of your own feeble efforts. I'm afraid it did not work.

You are talking about bounce backs at time when courts are filling up with people who cannot afford the repayments on the houses they are living in. They were taken in by fairy tales of ever rising house prices and the spin of 'prices always bouncing back'. These families are now being thrown out on to the streets just before Christmas.

It is spin has brought our economy to this sorry state and your post is nothing but spin.

ManAtHome

londonlandlady wrote: »

More insults?

I'll go through what I said in steps.

1) I've just tried the HSBC and Lloyd's mortgage calculators. HSBC offered me a 4x income mortgage. Lloyds offered me a mortgage of almost 5x income.

2) In other words, mortgage lending is already at a reasonable level. Contrary to media reports, mortgages have not disappeared off the face of the earth.

3) The bailout involves the transfer of hundreds of billions of pounds from American taxpayers to the banks.

4) This will further increase the availability of mortgages, which is already at a reasonable level (see (1) and (2)).

5) More importantly, the market is underpinned by the UK population's obsession with owning property. An obsession which all the doom-sayers obviously share - or why would they spend all their time posting on here?

See?

1. Did you actually get one (see many other other posts about difference between "maybe calculators" and reality (wrong LTV, odd missed payment on a CC etc)?

2. Mortgage lending for Sept 08 was 95% lower than Sept 07 - still reasonable?

3. Sort-of, they had to include an extra 400 pages of freebies for uncle tom cobbly and all to get it through the (not up for re-election) Senate. As per previous post, it has to be paid back at some point.

4. Depends on the T&Cs - if a pay-back is expected the gap between base and mortgage rates will have to widen.

5. If it's underpinned by "UK obsession" , why have prices been dropping for the last 11 months?

Gangstabird

Right I put in that it was a male aged 39 with an earning of 25k with sometimes commissions/bonus, no family and a 20k deposit but wanted to borrow 230k.

Result 0

Gangstabird

I just did it again with a deposit of 20k a purchase price of 120k and even with credit card payments of £100 per month. They will do it on a salary of 25K.

I don't think that silly lending is at the end now.

ad9898_3

londonlandlady wrote: »

More insults?

I'll go through what I said in steps.

1) I've just tried the HSBC and Lloyd's mortgage calculators. HSBC offered me a 4x income mortgage. Lloyds offered me a mortgage of almost 5x income.

2) In other words, mortgage lending is already at a reasonable level. Contrary to media reports, mortgages have not disappeared off the face of the earth.

3) The bailout involves the transfer of hundreds of billions of pounds from American taxpayers to the banks.

4) This will further increase the availability of mortgages, which is already at a reasonable level (see (1) and (2)).

5) More importantly, the market is underpinned by the UK population's obsession with owning property. An obsession which all the doom-sayers obviously share - or why would they spend all their time posting on here?

See?

Ok
1) 4x average uk income is 100k, average house 161k, do the math

2) 100% mortgages gone, 95% mortgages almost gone, 61k deposit req. for average income (25k) for average house, know many people with this sort of money ??

3) The bailout 'may' help out liquidity, however most banks have had their hands badly burned in the fire, do you think they about stick them back in ??, doubt it

4) Mortgage availability is at an all time low, unless you have 25% deposit, then the better deals are available, thats a lot money, money people don't have (check the DFW board for some proof), and if they do have it like me and many others on this board, we are not about to p*ss it down the drain of neg equity.

5) Agreed, most people do want to own property, however just like no one with any brains would buy a Ford Mondeo for 50k, neither would they want to spend 200k for a rabbit hutch 10 floors up.

Gangstabird

In fact I can't believe what I have just seen. So this invented male with £100 credit card payments and I put another £150 car payments on this.... will, with his £20,000 deposit be able to buy a property worth £120,000 with a £25,000 per year salary. The rates were very good as well.

Madness.

neverdespairgirl

londonlandlady wrote: »

In other words, substantial mortgages are available even in the depths of the credit crunch. Don't believe the hype.

They are still available, for sure. But compared with, say, 12-18 months ago, mortgages are on the whole:

(1) lower loan-to-value;

(2) higher fees;

(3) higher rates;

(4) lower multipliers;

(5) much fussier about credit records.

Gangstabird

I just changed it so he only had £10,000 deposit and they blew it out of the water. Thank goodness, that could be my son in 20 years.

ad9898_3

Gangstabird wrote: »

In fact I can't believe what I have just seen. So this invented male with £100 credit card payments and I put another £150 car payments on this.... will, with his £20,000 deposit be able to buy a property worth £120,000 with a £25,000 per year salary. The rates were very good as well.

Madness.

Don't worry, if its the Lloyds TSB calc you're using, once they have HBOSs' balance book around their neck, they will reign that in for sure:D