I can't see a house price crash comming

Really2

Damaged wrote: »

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

£60K would easily get you a mortgage. They lend on affordability/ multiple providing you are within that and can hit the LTV required the wage makes no difference.

So if a person on a higher wage hits the same multiple/affordability and the same LTV as a % of the value of a property as a lower earner they would have the same prospects of getting the loan.

You are not more likely to get a loan just because you earn more, as people who earn more tend to borrow more.

Really2

Cleaver wrote: »

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.

Average household income is £36K I think, so nearly double that.

Most of the loans out there would go to people on less than £60K-£70K.

£60-70K would only be seen as low/normal if you were in the SE surely?

Malcolm.

Cleaver wrote: »

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

It's not that simple Cleavage.

The bank should take account of the individuals credit rating and the loan-to-value ratio.

Cleaver

Malcolm. wrote: »

It's not that simple Cleavage.

The bank should take account of the individuals credit rating and the loan-to-value ratio.

Of course. I meant generally speaking really. If they've been buying plasmas on the tick and not making payments then obviously they may not get that lovely mortgage.

Thrugelmir

Public sector job loses are unlikely to effect house prices

A bold statement. There are some parts of the country where a high percentage of the workforce are public sector related ( Sheffield being an example).

Swindon Borough Council are looking at cuts of over 10% of headcount, the NHS (including PCT and SHA) will be the same again. (The Nationwide is also reducing full time posts or equivalent by 10%). So there's a minimum of a two thousand people who'll be looking for new employment along the the M4 corrider in the next 2-3 years.

dopester

iinvestor wrote: »

I can't see a house price crash comming

There's a song somewhere in that thread title. Maybe fill the song out with your reasons.

Thanks to your title, for some reason I now can't get this song out of my head, with my own crashy lyrics.

http://www.youtube.com/watch?v=vK2Lo989ro0&feature=related
(set to clips from 'An American Werewolf in London').

LilacPixie

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

I guess it's all dependent on area. Up here you could get a 3 bed semi for 130k maybe 120k if lucky so on a under 2x joint presuming you could make the deposit and had a decent credit rating you would be ok.

nembot

Nobody saw the drops coming in 1989 or 2008 or the next time.

When that is obviously I don't know, but I reckon it'll be much sooner that a lot of people expect.

smamst

It's going to be the moment interest rates go up, and that isn't that far off.

HAMISH_MCTAVISH

smamst wrote: »

It's going to be the moment interest rates go up, and that isn't that far off.

Wrong on both counts.