Vote on 3x salary mortgage cap

Dan:_4

beecher wrote: »

I find it odd that people think it is a sign of the nanny state. Ultimately it is banks being reminded that they should be aware of risk. Lending more than 3x salary is risky, and it is only because we've become brainwashed into thinking houses are a money making commodity that we fail to realise this.

I realise a lot of the anger is due to people realising that their property isn't worth what they believe it should be worth, but again that's brainwashing. My one bed flat was £140,000 at the peak but was never truly worth any more than £60,000. For many that'll be a mindbender, but that's where we're ending up.

As you suggest, banks, quite rightly, should be reminded to be aware of risk. No more 100% Mortgages, No more lending to people with poor credit records, no more lending to people who only work part time, no more lenidng to people who are not in a stable job, no lending to people who are already in heaps of debt, the list could go on...

If all the above are met, and they can quite clearly demostrate the ability to repay a mortgage which is 4 X their Salary, what is the big deal???

stevetodd

Dan: wrote: »

So if someone has 20K debt, you are suggesting, maybe 2 x salary?

What about someone who has no debt, good steady job, execllent credit history, decent depoist and wants a nice long fixed term - why can't they have 4 x

Exactly the point I was making, look at individual cases

Dan:_4

stevetodd wrote: »

Exactly the point I was making, look at individual cases

And this is what it's likley to be, according to the various reports.

whathavewedone

When is the actual report due to come out?

tommy75

The new banking regulations proposals have just been reported on BBC1 news this lunchtime, though no details were mentioned.

Dan:_4

No word of a 3 x salary cap as part of the proposals, from the BBC report.

Kez100

This is the problem the banks have brought on themselves - complete plonkers that they were.

The market and sensible rational thought should allow the market to make changes to, perhaps a accepted general 3x, in special circumstances. That would give some fluidity to the market. By saying only xtimes maximum there is no ablity to take account of special circumstances. But then again banks can't be trusted with assessing special circumstances rationally can they so a fixed x3 is probably all they can be trusted with?

chucky

so if this 3x salary price cap does come in that would mean that house prices would drop by a big amount.

it will be cheaper to buy a house than rent a council flat.

what nonsense!!

Dan:_4

chucky wrote: »

so if this 3x salary price cap does come in that would mean that house prices would drop by a big amount.

it will be cheaper to buy a house than rent a council flat.

what nonsense!!

Either that or people will need to earn at least 50K to become a property owner.

Your right clucky, it's the biggest load of nonsense i've heard in ages.

chucky

Dan: wrote: »

Either that or people will need to earn at least 50K to become a property owner.

Your right clucky, it's the biggest load of nonsense i've heard in ages.

it's was just a bear trap