How did the 3x or 4x income level get chosen?

lostinrates

Pobby wrote: »

Seriously, I think you could still get a place to live in N. wales for not much more than 10 grand then.

You've just made me feel old...:(

I don't know, I've never looked in N. wales. at that time property in the less fashionable bits of Glos and herefordshire were waking up and Dorset, Somerset were starting their tradjectory...my parents bought in somerset about that time and it is amazing, looking back, what they got for the money. I don't dream of prices like that...

Austin_Allegro

Martinslovechild wrote: »

Random Thoughts...

1. The more money banks lend, the more profit they make. It's not in their interest to lend smaller multiples.

2. Why is a mortgage duration typically 25 years? Surely, a better question for lenders to ask is 'What can you afford each month? We'll work out the mortgage duration based on that figure'.

3. Why do most lenders follow so-called 'standard' multiples rather than personalised quotations based on affordability? A large number of people exist who have no children, no other debts and a mortgage deposit saved up. Surely, it's a fairer system not treating everybody as being equal.

4. Why must we pay an arrangement fee? What's normally involved in 'arranging' a mortgage other than entering our details into a computer - something which most of us do already on the internet during our application.

5. Why do most mortgages allow overpayments of up to only 10% per annum? Are the banks afraid that everybody will revolt and suddenly repay their debt?

Some more random thoughts:

1. Debt is the slavery of the free.
2. Everything banks do is designed to make money from you.
3. Everything banks do that looks like they are trying not to make money from you (ie, withholding the amounts they lend) is because they do not believe you are a good enough risk.
4. The reason the banks are bust is because they were able to sell on debt rather than being held responsible for it, hence (3) was abandoned.