Are the mortgage lenders being irresponsible?

Graham_Devon

julieq wrote: »

And the affordability questions ignore inflation and changes in circumstances such as promotion and other wage increases.

They ignore them because they are not a given.

It's more a guess of what may happen in future. An optimistic guess at that.

If we wanted to include such things, you would also have to include the possibility of a loss of job, wage cuts, and other circumstances which could effect the borrower in a negative way.

Dan:_4

Graham_Devon wrote: »

They ignore them because they are not a given.

It's more a guess of what may happen in future. An optimistic guess at that.

If we wanted to include such things, you would also have to include the possibility of a loss of job, wage cuts, and other circumstances which could effect the borrower in a negative way.

Then no one would get a mortgage, ever!

Graham_Devon

Dan: wrote: »

Then no one would get a mortgage, ever!

Exactly!

It's a guessing game Julie seems to want to play, but ignoring any possibilities of negative impacts. That, IMO, is a pretty dangerous assumption path.

Thrugelmir

bubblybee wrote: »

Hi All,

Thanks for the replies. I really wasn't seeking advice on taking out that level of mortgage - it was a starting point for a discussion.

I feel that I am responsible and know that to save for children etc we couldn't afford that level. I was really using my situation to illustrate that to me the £189K amount seemed rather high and I think people, some people, would be tempted by that. For info though this is based on 90% mortgage.

So my point was while I think there is a responsibility of the mortgagee, I think I had expected some restrictions on what is being considered affordable - given what has happened over the last two years to the economy and banks etc.

I was just curious what other people thought.

Remember that you only have a MIP at this point in time. When it comes to purchasing a property the surveyor representing the bank may value the property lower than your offer price. So you are part way through the process.

A single person on the salary you quote takes home over £2600 per month ( a couple more) . So £1,100 for the mortgage repayments does not seem excessive. If you have all your finances in order.

The RBS is under pressure to lend money as part of the Governments bailout. Whilst 90% mortgages are available the criteria will be very strict. Also the interest rate on the product will reflect the risk.

chucky

Graham_Devon wrote: »

They ignore them because they are not a given.

It's more a guess of what may happen in future. An optimistic guess at that.

If we wanted to include such things, you would also have to include the possibility of a loss of job, wage cuts, and other circumstances which could effect the borrower in a negative way.

yes because that happens to everyone and nobody gets pay rises, inheritances, promotions etc, etc...:rolleyes:

quick Graham let's throw cold water on any possibility of anyone saying something positive on this forum...

Graham_Devon

For crying out loud chucky.

Grow up.

chucky

Graham_Devon wrote: »

For crying out loud chucky.

Grow up.

you've lost me (again) - is nobody allowed to have a counter argument against your posts :rolleyes:

maybe this may educate you http://en.wikipedia.org/wiki/Counterargument

A counterargument might seek to cast doubt on the truth of one or more of the first argument's premises, or to show that the first argument's contention does not follow from its premises in a valid manner, or the counterargument might pay little attention to the premises and common structure of the first argument and simply attempt to demonstrate the truth of a conclusion incompatible with that of the first argument.

Graham_Devon

Counter argue then. You think you are counter arguing?

I said:

Graham_Devon wrote: »

If we wanted to include such things, you would also have to include the possibility of a loss of job, wage cuts, and other circumstances which could effect the borrower in a negative way.

You turn my talk of a possibility, which IS a possibility in everyones life into:

chucky wrote: »

yes because that happens to everyone and nobody gets pay rises, inheritances, promotions etc, etc...:rolleyes:

quick Graham let's throw cold water on any possibility of anyone saying something positive on this forum...

If you are classing that as a counter argument it's no wonder you keep losing pace.

You are simply turning one word into something completely different to suit your purpose and attaching a colourful icon to the end of it.

Hence, grow up.

chucky

Graham_Devon wrote: »

Counter argue then. You think you are counter arguing?

I said:


You turn my talk of a possibility, which IS a possibility in everyones life into:



If you are classing that as a counter argument it's no wonder you keep losing pace.

You are simply turning one word into something completely different to suit your purpose and attaching a colourful icon to the end of it.

Hence, grow up.

welcome to the Graham Devon show everyone!!! :T

Graham_Devon

chucky wrote: »

welcome to the Graham Devon show everyone!!! :T

Indeed.

Have fun chucky.