are the banks 'giving away' mortgages again?

AbbieCadabra

deleted.....

AbbieCadabra

deleted (was in response to opinions4u who's now deleted their reply...)

Thrugelmir

Nothing wrong with 90% mortgages. What matters more is the income multiple they are borrowing on.

If they've saved a deposit maybe they've also sorted out their personal financial issues as well.

Your comments are assumptive as you don't have all the facts.

AbbieCadabra

deleted.......

KimYeovil

Three times joint salary and a 90% mortgage is scary? Do not understand. Completely affordable.

AbbieCadabra

deleted.....

LittleMissAspie

3x joint income is only affordable if both people continue to work full time. If one gets sacked, sick, made redundant or pregnant, the remaining worker has to pay a mortgage that is 6x salary. And that's if they both earn the same.

I earn less than my boyfriend so if we borrowed 3x joint income and he got made redundant, I'd be trying to pay a mortgage that's 7.5x my salary. The max I'm willing to borrow is 2.25x joint, as the mortgage and bills on that matches my take home pay. Any more and I would not be able to cover the essentials on my own.

VIGILANT22

LittleMissAspie wrote: »

3x joint income is only affordable if both people continue to work full time. If one gets sacked, sick, made redundant or pregnant, the remaining worker has to pay a mortgage that is 6x salary. And that's if they both earn the same.
QUOTE]

Hmmm....That's the point of insurance!

milliebear00001

VIGILANT22 wrote: »

LittleMissAspie wrote: »

3x joint income is only affordable if both people continue to work full time. If one gets sacked, sick, made redundant or pregnant, the remaining worker has to pay a mortgage that is 6x salary. And that's if they both earn the same.
QUOTE]

Hmmm....That's the point of insurance!

To answer both parts quoted...for a mortgage to remain affordable, it's not always necessary for the two salaries to remain. People's circumstances change. In many cases, income will go up with time and so there may be a time where one partner can take over the mortgage while the other isn't earning (this commonly happens where a couple start to have children for example). Many people will take on a mortgage with this in mind.

Insurance will only cover some eventualities - for example, it's not available for pre-existing conditions or pregnancy etc!

VIGILANT22

[QUOTE=milliebear00001
Insurance will only cover some eventualities - for example, it's not available for pre-existing conditions or pregnancy etc![/QUOTE]

Did you notice what I highlighted....I NEVER highligted pregnacy.....

If people take on a mortgage and can't afford to insurance against the risks...they can't afford it in the first place........

milliebear00001

VIGILANT22 wrote: »

Did you notice what I highlighted....I NEVER highligted pregnacy.....

I don't recall saying you did...

If people take on a mortgage and can't afford to insurance against the risks...they can't afford it in the first place........

I don't recall saying it was about affording the insurance, merely that you can't actually buy insurance for every eventuality...

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