Cautious Coventry BS re-enters the 90% market.

Thrugelmir

chucky wrote: »

they are a tough lender to please...

they recently had a 3.99% five year fix for BTL that you needed 50% LTV.
a great rate but very difficult to get them tick all the lending criteria boxes to lend you the money.

Did you manage to tick the boxes ? :cool:

Really2

Graham_Devon wrote: »

I doubt that very much. First stumbling block would be the deposit needed.

However, if you are talking about a 10% deposit. The stumbling block on that would be the salary needed.

The third stumbling block is that averages do not take into account familes with a single worker and a parent at home to look after the kids. The parent at home looking after the kids does not even register on the stats. So for most families, the "average" is a lot higher than what they actually live from.

Household income is probably the best indicator, and average of that is 28k I believe.

That, does not fit into what you said above.

Your thread.

Graham_Devon wrote: »

[/I]So, looks like the typical FTB's are earning 37k a year.

So £142K for a first time buy, (£37KX3.5 + 10%)

But the average FTB deposit at the moment is 25%

So I make that around £161K to buy price. .

Conclusion a FTB with a 10% deposit can buy a property just under the national average.

chucky

Graham_Devon wrote: »

I doubt that very much. First stumbling block would be the deposit needed.

However, if you are talking about a 10% deposit. The stumbling block on that would be the salary needed.

The third stumbling block is that averages do not take into account familes with a single worker and a parent at home to look after the kids. The parent at home looking after the kids does not even register on the stats. So for most families, the "average" is a lot higher than what they actually live from.

Household income is probably the best indicator, and average of that is 28k I believe.

That, does not fit into what you said above.

you've made a few assumptions there. 10% deposit + 90% mortgage

average FTB household income is £37k = 3.5 times income they can borrow £129,500 + 10% deposit would mean a property price of £144k.

i'm sure most FTBers wouldn't buy an average property they would buy something cheaper - even at £144k it wouldn't be too far off an average property.

chucky

silvercar wrote: »

I don't agree the Coventry is cautious. The may be "tlc not plc", a sop to the fact they are a building society still, but they have a broker only arm trading under the Godiva name which is heavily exposed to the BTL market.

it was from a broker so that could be why

Thrugelmir wrote: »

Did you manage to tick the boxes ? :cool:

probably but i'm not looking for any finance

Thrugelmir

silvercar wrote: »

I don't agree the Coventry is cautious. The may be "tlc not plc", a sop to the fact they are a building society still, but they have a broker only arm trading under the Godiva name which is heavily exposed to the BTL market.

So easy to generalise. Not all lenders were involved in high risk practice.

From the June 2009 accounts report.

In the first half of 2009, gross advances totalled £1.3 billion (2008: £1.9 billion). At £338 million, the Coventry’s net lending was equivalent to 12.7% of that undertaken across the market as a whole as many of our competitors were compelled to shrink their balance sheets. The average loan to value (LTV) ratio on new advances made in 2009 was 53%.

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In common with others, we have undertaken buy-to-let business and at 30 June 2009 our buy-to-let portfolio totalled £2.9 billion, representing around 22% of our mortgage book. However, we have not experienced the problems reported elsewhere. We have negligible exposure to the higher risk city centre flat and loan portfolio markets and insisted from the start that all buy-to-let borrowers had substantial deposits in place.

As a result of these measures, the Coventry’s buy-to-let mortgages continue to perform exceptionally well, and very substantially better than industry norms. At 30 June 2009, just 0.68% of buy-to-let cases were more than three months in arrears – only 27% of the CML average of 2.49%

Graham_Devon

Really2 wrote: »

Your thread.



So £142K for a first time buy, (£37KX3.5 + 10%)

But the average FTB deposit at the moment is 25%

So I make that around £161K to buy price. .

Conclusion a FTB with a 10% deposit can buy a property just under the national average.

My thread talked about actual FTB's, ones that had bought that month.

In this thread I was talking about families where one doesnt work the other does.

2 totally different points, not to be confused with each other, but you and chucky have managed too....once again.

Conrad

silvercar wrote: »

I don't agree the Coventry is cautious. The may be "tlc not plc", a sop to the fact they are a building society still, but they have a broker only arm trading under the Godiva name which is heavily exposed to the BTL market.

Thier repo numbers are well below industry average. Many LL's have an awful lot of margin and light years away from financial hardship.
Currentl B2L lending is only for the cream of the crop.

Really2

Graham_Devon wrote: »

My thread talked about actual FTB's, ones that had bought that month.

In this thread I was talking about families where one doesnt work the other does.

2 totally different points, not to be confused with each other, but you and chucky have managed too....once again.

What are you on about.
This thread is about 90% mortgages for FTBers, if the average FTBer earns £37K it is irrelevant who works and who does not.
The average FTBers earn £37K!!!!!!!!!!!!!!!!
Surely actual ones are a better example than an hypothetical one you have dreamt up!!!!!!!!!!!!!!

Is your water different down there?

chucky

Graham_Devon wrote: »

My thread talked about actual FTB's, ones that had bought that month.

In this thread I was talking about families where one doesnt work the other does.

2 totally different points, not to be confused with each other, but you and chucky have managed too....once again.

ahh you're using the chewbacca tecnique again to try and deflect you've got it all wrong once again :rolleyes:

two examples for you

1. for a single person, the average FTB salary is £37k times the 3 times multiple = £111k can be borrowed plus 10% deposit = £125k property

2. for a couple let's take the alleged average salary £26k plus the 2nd income at let's say £20k.

take £46k times the multiple of 3.5 times income = £161k can be borrowed plus 10% deposit = property around £175k property.

the moral of the story young Graham is if you can't afford a property on one salary - don't buy. get a better paid job or get your partner to work.... unfortunately not everyone can afford everything the property that they want on their terms, you have top adapt

Graham_Devon

chucky wrote: »

ahh you're using the chewbacca tecnique again to try and deflect you've got it all wrong once again :rolleyes:

two examples for you

1. for a single person, the average FTB salary is £37k times the 3 times multiple = £111k can be borrowed plus 10% deposit = £125k property

2. for a couple let's take the alleged average salary £26k plus the 2nd income at let's say £20k.

No.

Average salary for First Time Buyers is 37k. Whether thats single or couple. The average is 37k, averaged out over all FTB's.

All your "lets say" bit is rubbish. You are merely guesstimating, with absolutely no reference, picking figures out of the air to make your point. That couple that you have created to make your point can afford it, yes. But thats very different to the average.