abbey ups mortgage limit by 5 times!

Storm

oakdale_minx wrote:

I lived in Dublin for a year in the late 90's . The housing market went bonkers but the salaries didn't follow in the same direction and 5 x salary mortgages were being offered back then. All a bit crazy.

So does anyone know what happened to the house prices in Dublin? Are they still high or have they crashed?

climbgirl

Storm wrote:

So does anyone know what happened to the house prices in Dublin? Are they still high or have they crashed?

They haven't crashed, that's for sure! My friend is from there and is struggling to afford anything.

Cazzdevil

Does the 5X salary mortgage have an extended term too? If not, then I'd reckon that's an overstretch for ANYONE!
My mortgage value is 3x my salary and I find it a wee bit of a struggle at times on a 25 year term (only 18 years left though!)

cattie1

climbgirl wrote:

They've quite clearly said it's not pitched at first time buyers, but 2nd or 3rd time buyers.
Having said that, I don't think it helps the housing market much!

I agree with everything else you said but where do they say it's not aimed at first time buyers?
Sorry if I mised something.
I saw
"it will typically lend borrowers to up to 5 times income to help ailing first-time buyers"

"we have made changes to our abbey mortgage proposition to help more peopleespecially first time buyerspurchase the home they want."
I think i understand after writing that....does it mean they are doing this for other buyers so that first time buyers get more of a chance of buying?

Pobby

All madness to me!

Cazzdevil

cattie1 wrote:

"we have made changes to our abbey mortgage proposition to help more peopleespecially first time buyerspurchase the home they want."

The thing is, there's a difference between the home you "want" and the home you "can comfortably afford".

cattie1

climbgirl wrote:

They've quite clearly said it's not pitched at first time buyers, but 2nd or 3rd time buyers.
Having said that, I don't think it helps the housing market much!

I agree with everything else you said but where do they say it's not aimed at first time buyers?
Sorry if I mised something.
I saw
"it will typically lend borrowers to up to 5 times income to help ailing first-time buyers"

"we have made changes to our abbey mortgage proposition to help more peopleespecially first time buyerspurchase the home they want."
I think i understand after writing that....does it mean they are doing this for other buyers so that first time buyers get more of a chance of buying?

Ames

I've got friends just looking to buy their first homes and I think they're mad, especially if they ever want to have kids, I just don't see how anyone can afford a house in the current market, and I too believe that it has to crash or at the very least stabilise soon.

But I could just be jealous because I'll probably never work and almost definitely never earn enough for a mortgage.

ZTD

adypem wrote:

At that point I switched it off, and I'm waiting for the next edition of Repossession/Repossession/Repossession...

:rotfl: How true is that?

It'll have some "Property Expert" telling people how to bid for properties in auction.

I just hope it skips the interview with the sobbing ex-owner.

Mattie_Boy

This may sound a bit odd to some, but I don't think this 5x salary is anything new or going to make a great deal of difference.

One of my friends already has (and has had for over a year) a 5x his salary repayment mortgage (over 30 years mind).
Although he didn't get offerred the best rates available he can afford the repayments and the odd beer or two every week.

We also looked at doing something similar last year as I earn a fair bit more than my (then gf) wife but in the end we brought a house together. The upshot being we got a mortgage for just over 4x our JOINT salaries (around 235k - we had a 15k deposit) and we had the choice of a few lenders all at competative rates.