Average first-time buyer age to rise to 43

ILW

Emy1501 wrote: »

This is how the FSA guidelines work these days. Its all based on affordability rather than the old 3-4X joint etc. 4-5x joint is still the guideline but lenders have to deduct from that monthly loan repayments and also 3% a month in respect of any outstanding credit cards etc, Lenders will also take into account childcare expensive hobbies etc. Most lenders lending towards the top of the ratio will also want to see 3-6 months bank statements to see what the borrowers outgoings are and what their disposable income is. The days where lenders offered 4-5X joint without questions or evidence to support affordability are over over for the vast majority.

Sounds about right to me.
I think many current potential FTBs saw how easy it was to get a mortgage over the last 10 years or so and believe that was the norm as opposed to a blip.

ILW

olly300 wrote: »

Unfortunately for many people there is no such thing as secure employment regardless of what sector, public or private, you work in. Even teachers can and have been made redundant since the 80s.

Relatively secure then. To be honest a lot can happen in 25 years no matter how secure one feels.

olly300

ILW wrote: »

Relatively secure then. To be honest a lot can happen in 25 years no matter how secure one feels.

Lenders aren't stupid.

If you do lots of temporary work in whatever form they are well within their rights to ask for 3 years proof of income.

The issue with self-cert was that they and the brokers they allowed to sell their products couldn't be bothered.

ILW

olly300 wrote: »

Lenders aren't stupid.

If you do lots of temporary work in whatever form they are well within their rights to ask for 3 years proof of income.

The issue with self-cert was that they and the brokers they allowed to sell their products couldn't be bothered.

Or had a good idea that the earnings were nowhere near what was being quoted.

chucknorris

olly300 wrote: »

Lenders aren't stupid.

.

I don't think you would be saying that if you had arranged a mortgage from the Scarborough BS (now part of Skipton BS). Their stupidity astounded me, there were so many problems that I had to sort out for them that I can't even remember most of the problems, but they were to do with them not understanding their own paperwork and systems.

The biggest one was that 7 days before exchange they decided that they would no longer accept the local estate agent's rental valuation of £1,200/month (which had been agreed about 6 weeks earlier) and set their own valuation at only £1,000/month. Luckily I did have the spare £65,000 EXTRA deposit sitting in a savings account and negotiated the extra deposit as a 'retention' rather than mortgage adjustment, so that when we rented the place we would get it back (which we did), as it was a 0.38% above base mortgage that was worth doing). But how many people can dig up 65k in less than a week, if I had not we would have lost the property, time and effort and fees incurred.

My wife wanted to find another lender because they were so stupid, but I insisted we stuck with them because the mortgage deal was so good.

abaxas

chucknorris wrote: »

I don't think you would be saying that if you had arranged a mortgage from the Scarborough BS (now part of Skipton BS). Their stupidity astounded me, there were so many problems that I had to sort out for them that I can't even remember most of the problems, but they were to do with them not understanding their own paperwork and systems.

The biggest one was that 7 days before exchange they decided that they would no longer accept the local estate agent's rental valuation of £1,200/month (which had been agreed about 6 weeks earlier) and set their own valuation at only £1,000/month. Luckily I did have the spare £65,000 EXTRA deposit sitting in a savings account and negotiated the extra deposit as a 'retention' rather than mortgage adjustment, so that when we rented the place we would get it back (which we did, as it was a 0.38% above base mortgage that was worth doing). But how many people can dig up 65k in less than a week, if I had not we would have lost the property, time and effort and fees incurred.

My wife wanted to find another lender because they were so stupid, but I insisted we stuck with them because the mortgage deal was so good.

So le me get this right.... they didn't believe an estate agent's valuation?

And how exactly does that make them stupid? If anything it's proves they have at least some brain power working.

chucknorris

abaxas wrote: »

So le me get this right.... they didn't believe an estate agent's valuation?

And how exactly does that make them stupid? If anything it's proves they have at least some brain power working.

No, you have not got it right, maybe you should try reading my post before you reply to it?

They AGREED the estate agent's (who also did lettings, this was not the same agent dealing with the sale) RENTAL (not sale) valuation, then within a week of exchange they denied that they had agreed, and when I posted back to them their own letter agreeing to it, they still said that they had not agreed. We later rented the property out at the earlier agreed rent and I received my 65k back.

But this was just one error, I had to talk them through the mortgage process and hold their hand to correct the weekly mistakes they were making. Another mistake they made was to offer us a 20% mortgage with a 80% deposit, when it had been agreed the other way around, i.e. an 80% mortgage with a 20% deposit, yes that was just a silly mistake that anyone could make but they specialised in making these on a weekly basis.