July house purchase lending up on a year ago for first time in over two years

IveSeenTheLight

andrinaperry wrote: »

I think there is a definate argueent for going back to the 80's scheme of 2.5 joint income as a max perhaps people would not get into such difficulties.

The thing is that would be unfair.
Disposable income is the key and working out if the repayments are affordable for that.

One couple could have loans, credit cards, smokers, drinker, out every weeken and effectively show that they spend all of their disposable income each month.

Another couple on similar incomes could have much less outgoings and therefore be able to afford more on mortgage payments.

Graham_Devon

IveSeenTheLight wrote: »

The thing is that would be unfair.
Disposable income is the key and working out if the repayments are affordable for that.

One couple could have loans, credit cards, smokers, drinker, out every weeken and effectively show that they spend all of their disposable income each month.

Another couple on similar incomes could have much less outgoings and therefore be able to afford more on mortgage payments.

Don't really agree it's unfair.

The couple who have much less outgoings could save to provide a bigger despoit and get a bigger home.

The thing with the multiples is that the couple that have less outgoings would be "sheltered" more from the effects of illness or unemployment, while the couple who have more outgoings out of choice are risking it a little more.

With your theory, both would be risking it more, as one singular change in their lives could effect their affordability.

b0rker

IveSeenTheLight wrote: »

Presumably also your figures are capital and interest payments, therefore much more than just the interest part of the mortgage which is what is comparable to rent

Correct.

Post too short.

IveSeenTheLight

Graham_Devon wrote: »

Don't really agree it's unfair.

The couple who have much less outgoings could save to provide a bigger despoit and get a bigger home.

The thing with the multiples is that the couple that have less outgoings would be "sheltered" more from the effects of illness or unemployment, while the couple who have more outgoings out of choice are risking it a little more.

With your theory, both would be risking it more, as one singular change in their lives could effect their affordability.

So the couple who have less outgoings would need to save more than those that spend all they've got. Good theory.

To put it in your words, Did I say that they wanted a bigger home?

You've clarified my point a bit with regards risk.
There is less risk with the couple with less outgoings, therefore why should they be limited to a multiple that other less risky options could have access to

mewbie_2

IveSeenTheLight wrote: »

July house purchase lending up on a year ago for first time in over two years

Wow big type face. If the news gets any better I'll need a wide screen.

IveSeenTheLight

mewbie wrote: »

Wow big type face. If the news gets any better I'll need a wide screen.

I actually reduced it.
When I copied and pasted it was even larger

P.S. you don't need a widescreen, you can adjust fonts in your web browser setting.

Thrugelmir

chucky wrote: »

Average income multiple is 3.02 now... i wonder if the usual comments about affordability will be returning anytime soon :rolleyes:

Thats with a 25% deposit though. How many FTB's have this level of deposit?

Suggests that availability of high mutiple loans is restricted. As historically FTB's borrow over 85% of their first property purchase.

chucky

Thrugelmir wrote: »

Thats with a 25% deposit though. How many FTB's have this level of deposit?

Suggests that availability of high mutiple loans is restricted. As historically FTB's borrow over 85% of their first property purchase.

36% of the current mortgage approvals are FTB's

IveSeenTheLight

Thrugelmir wrote: »

Thats with a 25% deposit though. How many FTB's have this level of deposit?

Suggests that availability of high mutiple loans is restricted. As historically FTB's borrow over 85% of their first property purchase.

According to the CML, 20,400 in July 2009, up 18% from June

Both Brittannia and HSBC are offering 10% deposit mortgage products.
There are probably a lot more, these were just a couple I looked at recently

http://www.britannia.co.uk/home/_sit...xed-rates.html

Britannia - 10% deposit, 5 year fix from 6.19%
- 25% deposit, 5 year fix from 5.44%


http://www.hsbc.co.uk/1/2/personal/m...FrUj:11j74lc1v

HSBC - 10% deposit, 5 year fix from 6.49%
- 25% deposit, 5 year fix from 5.59%

mewbie_2

IveSeenTheLight wrote: »

Both Brittannia and HSBC are offering 10% mortgage products.

Sheesh, who wants an interest rate of 10%? The crash is coming all right.