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House prices down to at least 115K... Thans FSA! 3X here we come!
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Not to the bank, they'd repossess, sell at say £500k, recoup the mortgage outstanding (say £200k) and costs, and old CHUCKY would lose the loot. Sorry CHUCKY old boy.
so where is the risk to the bank in all of this!?!?
why wouldn't a bank want to do this?
it's not even worth trying to explain to some of these people0 -
No. I never said that at all. I said that with the 3x multiplier you are suggesting then I would have £715 a month left over and only be allowed to spend one fifth of my income after tax on a mortgage. Despite tha fact that I may wish to spend more.
With £715 a month after tax left over do to with what I wish I am sure I could find money to cover any of the above taht you mention incredibly easily. In fact after living in the home we are in now we have had very few unexpected bills. I think you guys make a lot more out of this unexpected bills deal than you really should. You would think that some of you never owned a house before...
he's also forgetting that your salary would probably be higher in Year 10 of your mortgage than Year 1.0 -
And the award for Most Futile Thread of the Year goes to . . . . .
Seriously, as someone else said . ..a column filler article, and it's already been accepted as gospel. It is utter nonsense.
Take a look at yourselves, why don't you?0 -
No. I never said that at all. I said that with the 3x multiplier you are suggesting then I would have £715 a month left over and only be allowed to spend one fifth of my income after tax on a mortgage. Despite tha fact that I may wish to spend more.
With £715 a month after tax left over do to with what I wish I am sure I could find money to cover any of the above taht you mention incredibly easily. In fact after living in the home we are in now we have had very few unexpected bills. I think you guys make a lot more out of this unexpected bills deal than you really should. You would think that some of you never owned a house before...
If you wish to spend more. Then you either overpay your current mortgage, or save a deposit for the next mortgage. I really don't see the issue here? No one is stopping you paying more. What they are doing is applying risk strategies.
You are now stating "we". So it's changing it slightly. But you simply did not factor anything in in the outgoings. There was no car, no transport at all, no other commitments at all, no water, plus the bills were incredibly low. No mobile usage at all, food shopping etc to an absolute bare minimum.
What I'm trying to say is, that is nothing like the average person or family.
We can only work on averages. If you WANT to, you can then overpay, or save a larger deposit which will enable you to fulfill what you want to do.
As for water rates and council tax in the highlands. How would I know you live in the highlands?
Secondly, that costs you £1000 per year? Water AND council tax? £100 x 10 payments? Or was that another minimal sum?0 -
I think the example Borker gave showed that he has enough to save for a rainy day/overpay his mortgage even without being restricted to a 3 x salary multiple.
Boilers incidentally don't just break out of nowhere despite those Ocean Finance ads with Carol Vorderman in. If you move into a house with a boiler put in around 1965 then it's a pretty safe bet that it will need replacing and that it might be an idea to get that done as soon as you move in. You could do as we did and ask for 4k off the asking price for a new one. If the house you are buying has a new boiler there will be guarantees. If the house you are buying has a boiler which is neither new nor old you can take out insurance rather than saving for a new one if you wish.
As for other maintenance issues, there are these things called surveys that you can have done when you purchase a property. If there is damp, a dodgy roof, guttering that needs done YOU CAN ASK THE SELLER TO DO IT OR GET MONEY OFF!!! If there are no problems then it is unlikely that you will need a new roof within the next 5 years.
If this became "law" as some are hoping it would be hugely unpopular and inflexible. I can of course see its appeal for FTBS hoping to buy a 4 bedroom house but they aren't the only voters.
Our situation is as follows: I'm a qualified lawyer, was earning around 50k before giving up work to have kids. Oh earns around 70k, doesn't have petrol or car expenses. We have borrowed more than 3 x salary but can afford it on one income. The mortgage is interest only to give us the flexibility until I go back to work which I intend to do when the kids are at school to minimise childcare costs. With the 100k deposit we put down if we'd only been able to borrow 3 x ohs salary we wouldn't have been able to afford this house. We don't want loads of spare cash for clothes, going out and holidays. We just want a nice house. I think the majority of people in our age bracket with kids (35-45) would definitely prioritise a nice home near good schools above lots of cash to go to the pub with.
Before I got married and had kids I had a one bed flat 2.5 times my salary because I wanted to have lots of cash for going out. I didn't expect, need or want to buy a 3 bed semi or a 4 bed house. (okay maybe a 2 bed might have been nice and I could have had one but didn't want to borrow more than 2.5x salary - choice).
If this does become set in stone and impossible to get around (which I seriously doubt) then I will be grateful that we bought in 2007 tbh. Couldn't give a stuff about negative equity as long as we can pay our mortgage.
Our mortgage is around 4.5x oh's salary so not a ridiculous multiple - nevertheless 3 x salary would equate to a house worth £310k assuming 100k deposit which would not have got us the house we needed/wanted and would have left us with more disposable income than we needed/wanted.0 -
If as a first time buyer you want a bigger house, outside lending criteria, then you save! Or, you use another form of lending, self cert. I have said that loads of times. I said it in the post you replied to and what you quoted.
As for being like the average family. No, your not. Most people have to use some form of transport other than a bike. Most have at least some other commitments. And the council tax and water combined is only a scottish thing, and WELL below everywhere else.
For a band A here you would be looking at £1500 at least for your water and council tax. Given we have double the water rates of pretty much anywhere else here, but that just gives an indication of how you, and others can differ so much.
What you are saying is, you would expect to be given a loan, outside of any criteria, and not expect to do what the rest of us have to do in general, and save deposits etc?
Then, as I have said, self cert. You haven't even acknowledged that.
Edit: You seemed to delete your response, then put it in again? So my response is now above yours!?
I'm outta here.
The products are there (I think) and have been proven to be disasterous. It's called self cert and you can use it if you wish. You do not wish to, wish is why you seem to have just ignored it completely. I do not see the problem? I do not see why things should be tailored to fit your requirements, when you have options yourself to do just that.
Seems to me the optimists don't want the economy to crash, but neither do they want anything to happen to try and stabalise it either.0 -
Graham_Devon wrote: »If you wish to spend more. Then you either overpay your current mortgage, or save a deposit for the next mortgage. I really don't see the issue here? No one is stopping you paying more. What they are doing is applying risk strategies.
What if I wanted a bigger house as a FTB? Are you saying that it would be too much of a risk to the lender to offer me more than the figures that your lending criteria of 3x income would afford me? Ending up with me paying only one fifth of my income after tax on a mortgage?Graham_Devon wrote: »You are now stating "we". So it's changing it slightly.
The "we" was in relation to my actual circumstances not the hypothetical circusmtances I have been using for the point I have been making. Plus the "we" was used in relation to not having many/any unexpected bills so does not affect the figures I have quoted at all.Graham_Devon wrote: »But you simply did not factor anything in in the outgoings. There was no car, no transport at all, no other commitments at all, no water, plus the bills were incredibly low. No mobile usage at all, food shopping etc to an absolute bare minimum.
Oh dear. Why do I need a car? I used to cycle to work for my last job and did not have a car. In fact I was fitter and better for it. I would prefer not to have a car in fact! My water is covered in the council tax so I did mention it. The bills are not low for one person in a 1 bedroom flat which is once again kind of the point of my original post. I have included a mobile usage. Are you deliberatley listing things I have mentioned? £25 a week for food is more than enough for a single person.Graham_Devon wrote: »What I'm trying to say is, that is nothing like the average person or family.
Yes it is. It is exactly like the avergae person. You appear to be suggetsing that I should be able to buy a FTB property and then live like a King on my £715 a month fun money. I am not entirely sure that there has ever been a tinme in history when a single income person has been able to buy into the bottom of the housing markert as a FTB and lived like Elvis?!?!?Graham_Devon wrote: »As for water rates and council tax in the highlands. How would I know you live in the highlands?
I mentioned that I lived in Inverness in my main post on this thread.Graham_Devon wrote: »Secondly, that costs you £1000 per year? Water AND council tax? £100 x 10 payments? Or was that another minimal sum?
The band A (1 bedroom flat) for 2008/2009 is £775.33. Bang water on top of that (included in bill) and it will be about £1000. By the way if you pay your council tax bt direct debit you can pay 12 equal monthly installments. Therefore my calculations were the equivalent of £1080 per year.
http://www.highland.gov.uk/yourcouncil/news/newsreleases/2008/February/2008-02-14-01.htm
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