How could anyone lend us that much!

kunekune

For those who were automatically negative, I'd just say that there are various reasons for wanting to buy rather than rent. And if the interest (the bit that matters), albeit artificially low, is £400 less than your current rent payments (of £675) AND you are saving from £500 to £1500 month on top, then (a) obviously you have some room for disaster and (b) it is worth at least having an open mind and talking to the bank manager! For at least as long as DH's job lasts and interest rates are low, the payment ratio is £110 for every $100 borrowed. Not bad, really. And from what I said earlier, it should also be obvious that we are considering whether this is affordable on one income. It is. We did that calculation based on a higher-than-average interest rate and one salary. So don't worry about me ... I reckon we're fine up to at least 10% ... I was more worried about those who might think what tha bank 'offered' meant something.

Really2

Don't get me wrong I am not aginst you buying I am just trying to infom you the multiples they "surgest you can borrow" and what they actualy offer are miles apart at the moment.
i am actualy trying to install a bit of realism in it for you. I have had two mortgages last year.

kunekune

If only they knew, really2! No-one does. But we've reached the stage where we can't put our whole lives on hold for ever. The only reason for using a staff mortgage is to get the lower rate, not to borrow more.

kunekune

Realism? I would have thought it was clear from what I was saying that we DON'T WANT TO AND WON'T be borrowing that kind of money. It was the absurdity of it I was pointing out.

lostinrates

Really, you said the same to me re offers in principal, and I don't doubt this happens often, when I was offering last year. I went back to the back pressed they were happy with the mulitples and familiar with our banking/earning history yet you seemed adament they would back track, so whilst I did get to test it with a purchase I'm confident that its possible to get what you are offered on a property they value at the purchase price..and no, of course I'm not talking about on line calculators.

Really2

kunekune wrote: »

Realism? I would have thought it was clear from what I was saying that we DON'T WANT TO AND WON'T be borrowing that kind of money. It was the absurdity of it I was pointing out.

But that is what I am telling you they are still telling you high multiples but not offering them (mortgage offer)

Lots of people can not get a mortgage at the moment due to mulitple and deposit amount.

I think conrad is a mortgage advisor perhaps he will give some idea how impossible it would be to get a 6X multiple at the moment.
I think you think I am attacking you. All I am pointing out is the same "reel them in" tactic multiple is being used even though they have no intention of lending the multiple.

kunekune

And I'm still not sure you get my point, sorry. I'm not on here saying "look what I can borrow, aren't I wonderful", I'm saying "they are still offering to lend too much" and sending people astray. That might be because they make an offer and then can't get a mortgage or because they borrow so much they can't repay it. If you are right, that this was a 6 x multiple, it is bordering on criminal. We're fine, we're not going to even attempt that. But there are those who will.

PS. The features of the staff mortgage that I like are nothing to do with multiples or even interest rates (since you still need to repay if you move on/get made redundant). It's that they don't insist on 40% to get the good interest rate (even after you leave) and that there are no fees for the mortgage, which is in essence a tracker (even after you leave/get made redundant)

Really2

lostinrates wrote: »

Really, you said the same to me re offers in principal, and I don't doubt this happens often, when I was offering last year. I went back to the back pressed they were happy with the mulitples and familiar with our banking/earning history yet you seemed adament they would back track, so whilst I did get to test it with a purchase I'm confident that its possible to get what you are offered on a property they value at the purchase price..and no, of course I'm not talking about on line calculators.

The reason is that I have an unblemished credit history 30% deposit, and only a 3.3X multipl and had to get special clearence befor offer.

Sorry lostinrates i have actualy done it and got a mortgage unlike most on here.
Yo may know the bank manager and get a favour but that is not going to happen to every one in the UK.
HSBC lending is tight. All lending is tight at the moment. I have a family member who is an EA and a FA I think I in a fairl good position to say how tight lending actualy is as I have actualy got a motgage offer.

Sorry but you did not, and that is not a dig.

PS offer in priniple does not take in to account expensess property value, outgoings, (so in the current climate many are down written) but you can still think you can get it, I can't stop you.
I am just going off personal experiance and what the whole country is saying.

PPS I do not belive knowing the bank manger will satisfy the underwritters, It may do but I very much doubt it. It is practices like that what as caused this mess.

Rajendra_2

you should ask them about the interest rate first,sure they can lend you bigger than you're expected.

Really2

kunekune wrote: »

And I'm still not sure you get my point, sorry. I'm not on here saying "look what I can borrow, aren't I wonderful", I'm saying "they are still offering to lend too much" and sending people astray. That might be because they make an offer and then can't get a mortgage or because they borrow so much they can't repay it. If you are right, that this was a 6 x multiple, it is bordering on criminal. We're fine, we're not going to even attempt that. But there are those who will.

No I understand you do not understand that they will not lend that.(it is a lazy sales ploy.)

That is why lots of people cant get a mortgage or re mortgage.

read the threads buy conrad he states ther are more aplication more refusals and credit is getting tighter.