I can't see a house price crash comming

IveSeenTheLight

Damaged wrote: »

I pressume you earn between £60-70k between you, if so you are hardly the in the high income bracket are you?
I can see why the bank wouldn't lend to you as your salary to loan value is too low

Do you know where and what properties are valued at in Devilowns locale?
In My VI area, £60-£70 would get you a very decent place.

IveSeenTheLight

Damaged wrote: »

Lend is getting tighter and tougher, but rates are easing to help people afford more.
Still an advertised rate does not mean you'll get it

Surely by advertising increasingly lower rates, their trying to attract more business than previously.

Damaged

IveSeenTheLight wrote: »

Surely by advertising increasingly lower rates, their trying to attract more business than previously.

Indeed they are, but they will cherry pick the good ones and offer a slightly different rate to those that dont quite suit their requirements.

Damaged

IveSeenTheLight wrote: »

Do you know where and what properties are valued at in Devilowns locale?
In My VI area, £60-£70 would get you a very decent place.

I am sure it would, but in the banks eyes, its hardly an income they would fall over to lend on

Graham_Devon

IveSeenTheLight wrote: »

Ah a quick edit

It's not totally rubbish.
It's true there are still higher deposit requirements than at the peak, however if you check the mortgage rates, you can see they are contuing to fall.
I've been keeping my eye on mortgage rates as I'm on an SVR, but honestly, the SVR would be extremely hard to beat.

What I have seen is 5 year fixed rates contuing to lower.
HSBS was 5 year fix from 4.99%
Then the lowered to from 4.95%
I remember when they went to from 4.71%
Then from 4.2%
Now they are from 3.95%
https://mortgages.hsbc.co.uk/product/186-5-year-fixed-special

If lending criteria wastightening, surely we would have seen increasing rates.

Additionally, there was a period when it was a minimum 20% deposit required.
Now we are seeing more and more 10% products.

So lending did get extremely tigh, but there are signs that the noose strangling the market is loosening.

Not comparing like with like here ISTL.

You have only mentioned the interest rates. The HSBC 3.95% is a "special" released not long ago, and it has a 60% LTV.

The 4.99% was a 75% LTV product.

You've shown interest rates dropping, but then so has the max LTV.

Edit: infact, the 75% product is still available:

https://mortgages.hsbc.co.uk/product/145-5-year-fixed-advance-standard?source=results

Cleaver

davilown wrote: »

I have a slight problem with this comment. My OH and I earn in excess of £60k per year, have no debt or bad credit rating yet we've been told we need 20% deposit. I hardly call that Lax lending

Sorry to be a bit harsh, but this is your sig:

Debt Free :j:j:j:j 5th Feb 2010
Savings Target 16.67% started Mar 2010, target saved by Sept 2012

£27000/£27000 paid off Feb 2010 since LBM Jan 2007!

Maybe if you hadn't been £27,000 in debt up until February 2010 you would have had that 20% deposit. Don't get me wrong, I think it's cracking that you have paid off all that debt so quickly, but if you can pay off £27,000 in three years surely you can save a similar amount in the next three years which would probably be your 20% deposit? Of save half that and get a 10% product.

I presume this is what your sig means by the way? Apologies if I misunderstood it.

Graham_Devon

Cleaver wrote: »

Sorry to be a bit harsh, but this is your sig:

Maybe if you hadn't been £27,000 in debt up until February 2010 you would have had that 20% deposit. Don't get me wrong, I think it's cracking that you have paid off all that debt so quickly, but if you can pay off £27,000 in three years surely you can save a similar amount in the next three years which would probably be your 20% deposit? Of save half that and get a 10% product.

I presume this is what your sig means by the way? Apologies if I misunderstood it.

Not really what the poster was talking about though was it.

They never said or suggested they had, or have a problem with the requirement, so I'm not sure why judgement is required.

They only suggested that lax lending wasn't happening based on their experience.

princess*daisy

Damaged wrote: »

I pressume you earn between £60-70k between you, if so you are hardly the in the high income bracket are you?
I can see why the bank wouldn't lend to you as your salary to loan value is too low

Not entirely sure what you mean by this - £60-70k is a very good household income.

I was accepted for my mortgage in June. I bought the house for £88k on my own with a 10% deposit and I only earn £28k a year. Got a rather good deal as well.

Cleaver

Graham_Devon wrote: »

They never said or suggested they had, or have a problem with the requirement

Their very first comment is:

davilown wrote: »

I have a slight problem with this comment

Hence I thought they did.

But I take your point on board.

Cleaver

Damaged wrote: »

I pressume you earn between £60-70k between you, if so you are hardly the in the high income bracket are you?
I can see why the bank wouldn't lend to you as your salary to loan value is too low

If they earn between £60k and £70k between them then they both earn over the average wage, so I would say that they were in some form of high income bracket.

A bank should be lending to a couple who both earn about 25% over the national average wage.