Abbey - 5 times joint salary?

martyn4764

mustrum_ridcully wrote:

Well I've heard a 25% deposit is required - I guess we should be thankful for small mercies in that it's not 100%.

I saw that and thought, well at least that's sensible; but you have to wonder how many of the applicants will be funding that deposit from savings... and how many will lash it together with loans / credit cards? :eek:

Murtle

pawpurrs wrote:

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%!

I think those borrowing should be taking some of the responsibility for their own actions. If they can't afford it then they shouldn't be requesting it and move out of the I want everything now mode.

I have more disposable income on a lower salary at the moment then I did when I earnt more. I would therefore be a prime audience of Abbeys offer!!

M

dunstonh

I like the way that the news is making this sound as if its a new thing unique to Abbey. Abbey must be loving the free advertising. Anyone needing a big multiple and not getting advice will be heading to Abbey at this time thinking that they lend the most.

cupid_s

I cannot understand how anyone would be stupid enough to take this out! We currently overpay greatly on our mortgage (well we are saving 115% of our current mortgage each month to pay off a lump sum when the mortgage stops being fixed but it amounts to the same thing i suppose) to the extent that our payments are equal to what they would be had we taken out a 5x joint salary mortgage. We have no kids, pay no council tax, have no car to run, no real luxuries apart from one ok holiday a year and do sometimes struggle to save the amount we do but we have a choice and dont need to do this but we should only have to for 4 years luckily, and will obviously save less if/when we have kids or other responsibilities.

How people can knowingly let themselves in for the whole forseeable future with no choice and no way out, when I cannot see any way (and more to the point if they have any sense surely they agree) they could afford the repayments really are crazy!

meanmachine_2

If anyone has shares in Abbey, time to sell and put them into debt collectors.

Man, this is going to be one messy car crash when it all goes t*ts up.

It's called the Northern Rock effect.

Every single one of my FTBer mates is with NR. Abbey and the rest are clearly losing out in terms of share and are throwing the rule book into the cracks of doom.

Expect much more house price inflation in the coming months, taking us that much closer to the 1989 level of unaffordability I keep banging on about.

Man, that soft landing of last year is a distant memory.

WestonDave

I wonder if this is just a marketing gimmick to get people through Abbey's doors to be sold something else because the 25% deposit is surely unaffordable for most people.

If you are on £25k a year and borrow 5 times that is £125k. £125k as 75% of the purchase price requires a deposit of nearly £42k. On £30k a year the deposit is £50k.

Realistically how many people are going to have those sorts of deposits saved against those salaries unless they are resorting to parental contributions.

pawpurrs

How come you have no council tax, cupid-stunt?

pawpurrs

Well said westondave, i guess its not so much for ftbers as those with some equity.

matto

5 times joint salary minimum 50k is 250k.

This doesn't seem like something for first time buyers. To meet the minimum requirements you need £80k deposit to buy a £330k house. I don't know many FTBers in that situation. Most likely this will appeal to those looking to upgrade who have that amount in equity, or, heaven forbid, MEWers funding a BTL mortgage.

mystic_trev

Madness absoloute madness, although (as has been pointed out) you need a 25% deposit.

Will Carol Vorderman be advertising them?