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Abbey - 5 times joint salary?
suffolkb
Posts: 1,299 Forumite
On radio 5 live now is a report that Abbey are prepared to offer 5 times salary. The example given is 2 people on 25K each could then borrow £250,000. Best of luck to anyone who takes this risk.
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They don't need luck - they need their heads testing. I seriously hope that the "5-times" bit is only one small part of a whole raft of criteria, the main one of which is means-testing for affordability. Blindly lending punters 5-times-joint-salary is lunacy.suffolkb wrote:On radio 5 live now is a report that Abbey are prepared to offer 5 times salary. The example given is 2 people on 25K each could then borrow £250,000. Best of luck to anyone who takes this risk.0 -
According to the report,Abbey will let you self-cert as well. A 1% increase on that mortgage would be £208 pm IO.0
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Just heard on bbc radio shropshire. If theres a demand.........! i look forward to the repossession tables.0
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I know someone who borrowed 5.5 times her salary ( single buyer) for a one bed flat in Kilburn.
For those outside London who dont know kilburn
http://www.kilburntimes.co.uk/content/camden/kilburntimes/default/default.aspx:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
It does make a mockery of this supposed housing shortage pushing up prices. It's quite simply people are borrowing more for the same thing!
The worst part is it is spun to sound as through they are helping home buyers.. Ha..0 -
This makes me mad its so irresponsable, why cant someone step in and say how wrong this is?Pawpurrs x
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They are going to call it the MUPPET MORTGAGE - it will be advertised in their branches with big pictures of Kermit and Miss Piggy living in a rat infested bedsit after having their £250,000 house reposessed !
Seriously though, if Abbey are SO worried about FTB's not being able to get on the property ladder, why not offer a special FTB 100% mortgage that gives a high salary multiple AND a very low interest rate, fixed for 5 years with no HLC and no setup fee ?
This would be a lot more use than trying to encourage people who cant afford it to buy instead of rent.0 -
For every irresponsible lender there must be an irresponsible borrower.pawpurrs wrote:This makes me mad its so irresponsable, why cant someone step in and say how wrong this is?
"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Well I've heard a 25% deposit is required - I guess we should be thankful for small mercies in that it's not 100%."One thing that is different, and has changed here, is the self-absorption, not just greed. Everybody is in a hurry now and there is a 'the rules don't apply to me' sort of thing." - Bill Bryson0
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Guy_Montag wrote:For every irresponsible lender there must be an irresponsible borrower.
Agreed but the banks have intelligence, those borrowing those amounts on a couples salary dont.
Its like passing the rope for people to hang themselves with. At least it isnt aa 100% mortgage, that makes some sense then :rolleyes:
If prices drop 25% and the house gets repossesed at least the bank will get their money back easily
Love your sig Guy, I agree with that 100%!Pawpurrs x0
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