Dream house found, declined mortgage by 3 diff companies

opinions4u

steve1980 wrote: »

Perhaps that's why the banks are in such a mess now then. Irresponsible lending.

In the case of Northern Rock, and their 125% loans, perhaps.

In the case of Bradford & Bingley the bought a load of naff American sub-prime stuff.

As for the rest of the mainstream UK mortgage lenders, while arrears have increased, as a result of the recession, it is fairly clear the residential mortgage lending is NOT the reason for the poisiton the likes of HBOS and RBS have found themselves in recently.

Other kinds of lending? Perhaps.

herbiesjp

You should be having no problems at all with the mortgage - assuming you have enough credit history to work with.

Remember, it is not the score on the reference agencies that counts, it is the score you get with the lender.

Can't understand why you are being declined - you must be falling outside of criteria in some shape or form.

Have you checked your partner's credit file?

delveh

herbiesjp wrote: »

You should be having no problems at all with the mortgage - assuming you have enough credit history to work with.

Remember, it is not the score on the reference agencies that counts, it is the score you get with the lender.

Can't understand why you are being declined - you must be falling outside of criteria in some shape or form.

Have you checked your partner's credit file?

Checked both our credit files and passed the info to our mortgage adviser. We'll see what happens, fingers crossed!!

User_name_6

ask the lenders why they have declined you :-)

going to be worth a shot.

Bullfighter

Crinz wrote: »

A generous 2.5 times multiplier??? What planet are you on? High street banks still give much more than that. I had a customer offfered a 6x by the system and a joint couple of nearly 5x

This is exactly the kind of lunatic debtaholic attitude that got us into this mess. 6x earnings???? What planet are you on? Oh wait, you're reaping commission cheques for every mortgage sold.... why should you care?
:rotfl:

luckyfool

Bullfighter wrote: »

This is exactly the kind of lunatic debtaholic attitude that got us into this mess. 6x earnings???? What planet are you on? Oh wait, you're reaping commission cheques for every mortgage sold.... why should you care?
:rotfl:

no, this is actually addressing the OP's question with factual answers rather than moralising and imposing your views on other people. The idea that 2.5 times joint income is a stretch, or difficult to obtain is just a fantasy with no basis in reality. 2.5 times joint income is a standard income multiple easily obtainable with even the strictest of lenders, with much much more available elsewhere as has been explained.

andys15

Bullfighter wrote: »

This is exactly the kind of lunatic debtaholic attitude that got us into this mess. 6x earnings???? What planet are you on? Oh wait, you're reaping commission cheques for every mortgage sold.... why should you care?
:rotfl:

Yes but unfortunately house prices have risen far higher than wages have risen, so what choice do people have. Its fine calling it lunacy, but I am sitting here right now in a house bought (less that 2 1/2 x joint salary), looking at houses much nicer than mine, bought at a quarter of the price. What chance do we stand to get ahead. Our joint income is £95000, I should be living in a house of luxury, but we had to get a loan to get together a big enough deposit. Its a crazy situation. (and before anyone asks why we didn't save for one, we didn't start on the wage, it is what we have worked towards)

Bullfighter

andys15 wrote: »

Yes but unfortunately house prices have risen far higher than wages have risen, so what choice do people have. Its fine calling it lunacy, but I am sitting here right now in a house bought (less that 2 1/2 x joint salary), looking at houses much nicer than mine, bought at a quarter of the price. What chance do we stand to get ahead. Our joint income is £95000, I should be living in a house of luxury, but we had to get a loan to get together a big enough deposit. Its a crazy situation. (and before anyone asks why we didn't save for one, we didn't start on the wage, it is what we have worked towards)

So you agree that overheating the market with outrageous loans is a bad thing? Or do you just want to borrow more and more to join the elite club of the over-leveraged?

Bullfighter

luckyfool wrote: »

no, this is actually addressing the OP's question with factual answers rather than moralising and imposing your views on other people. The idea that 2.5 times joint income is a stretch, or difficult to obtain is just a fantasy with no basis in reality. 2.5 times joint income is a standard income multiple easily obtainable with even the strictest of lenders, with much much more available elsewhere as has been explained.

No. I never stated that "2.5 times joint income is a stretch, or difficult to obtain". It is a sensible level that reflects the ability to repay vs income.

I'm stating that multiples of 5 or 6 times your annual salary ONLY makes sense in a demand-pull inflationary environment, where the debt gets magically erased by wage increases and capital appreciation. We only had this environment in the past 10 years because of the bubble inflated to paper over the last recession. You would be a brave man/woman to suggest that we will be experiencing either wage inflation or demand-pull inflation in the short to medium term.

andys15

Bullfighter wrote: »

So you agree that overheating the market with outrageous loans is a bad thing? Or do you just want to borrow more and more to join the elite club of the over-leveraged?

I just wanted to live in a nice area, where the kids can play safely. You have got to pay the price for that. I am not interested in my house as an asset. I dont care what it is worth, as long as I can repay my mortgage. I didn't want to continue renting as your life is in the hands of someone else. I paid over inflated price for it without a doubt, and the previous owners walked away with a £100000 profit. I didn't go above 2 1/2 joint salary as I didn't want a big mortgage payment every month. We could have, we were offered 5xsalary. I sympathies with other though, because I am a high earner so fortunately I can get a nice house in a nice area, but guys with less salary who strive for the same thing are having to pay 5 times salary, but I completely understand why they do it.