A quarter of homeowners cannot get a mortgage

Conrad

I suspect the numbers that cannot remo is higher. Equity is only one factor.

It was routine for high st lenders not to request documentation, look deep into a clients B2L's and so on, but now all that has changed.

Bonus income is largly irrelevant now, and all those self employed people are finding it neigh on impossible as they pay thier Accountants to minimise thier net income.

Then there are all those that let to buy, again a breeze in the past, not so now.

Interest only is much harder to come buy, so the millions wanting to remo on an interest only basis are finding the gate shut.

inspector_monkfish

IveSeenTheLight wrote: »

All the comments about people going on to SVR is fine for now and accepted, however we all know the BoE IR will not remain at 0.5% forever and when that rises, so will the SVR.

Hence, why people prefer to arrange mortgages so that they can plan their finances, something which as we have discussed, 22.5% are finding they cannot do.

with base rate currently at 0.50%, there is still plenty of room for another cut.... just look at US and Japan

IveSeenTheLight

inspector_monkfish wrote: »

with base rate currently at 0.50%, there is still plenty of room for another cut.... just look at US and Japan

If I was a betting man, I'd put a wager on them not dropping nay lower

treliac

vivatifosi wrote: »

That's true in many cases but I think that there's another group also. These are the people who have lost their jobs in this recession and have found something else, but on a lower salary. I know many people, especially ex-building trade, who are getting by at the moment purely off the back of rates that are at a historic all time low. They've managed to find other work, but are paid less because it does not fall in with their core skills base. They are relying on their former industries coming back and recruiting so that they can get another job (on their former wage level) in order to keep their house over their heads. I think this is a truly scary situation to be in and I have a lot of sympathy for them.

We were in exactly that situation at the start of the 90s when DH had to take the most basic night work to fit round family responsibilities. We had to scrimp and scrape to pay the mortgage (and interest rates were not low then!), plus other bills, while keeping ourselves and two babies fed and clothed.

We got by but went without everything but the very basics. Maybe life was simpler then, we didn't expect the luxuries some people have come to think is their right.

I guess we were lucky to make it (no, it wasn't purely luck) and life's hard work has paid off now. For many it will come down to a mixture of luck, extreme effort and an intelligent approach to priorities, as the consequences can be long lasting.

inspector_monkfish

IveSeenTheLight wrote: »

If I was a betting man, I'd put a wager on them not dropping nay lower

me too
but i'm crap at gambling !!