YBS Portable Mortage joke

DVardysShadow

David_Hutley wrote: »

... Although they state in their letter that they are unable to accept the portability applications they later go on to say that after taking loans and credit cards into account they could lend a maximum of £36,186.

I have a loan for a bike at £175 a month for the next two years
My wife has a car loan of £287 and a business loan of £309 both 2 years to go. Her credit card balances ( maximum and cleared each month ) total £370 and then my credit card which I use for work at £2980.

At no point have they asked about assets, savings or other investments.

Don't shoot me for this. You live in an 800k house, you have a mortgage of 175k and you have a bike loan for 187 plus other small loans.

Although what you are doing is probably very reasonable management of your money [tax concession on bike loan?], it just looks bad to be using trivial finance like this.

I am wondering if the way you have things set up for tax purposes etc is actually making you look a really bad mortgage prospect.

David_Hutley

I am wondering if the way you have things set up for tax purposes etc is actually making you look a really bad mortgage prospect.

You may well be right, I try and keep my net profit to a minimum and I claim for my bike, including the vat.

YBS asked for my accounts, they should be able to see all this. They are using my net profits to give a basic calculation and then deducted items that I take out of my gross profit. They are looking for excuses not to lend and don't have to justify exactly why. They look at the monthly payments of the loans but dont look at the period they are over, the balance outstanding or the asset value of the goods.

For all of this you would think that their primary concern would be to protect their risk. I am only wanting to borrow 21% of the value of the house. And by not letting me move they are holding me to a higher value mortgage.

I am yet to here a good reason

DVardysShadow

David_Hutley wrote: »

... For all of this you would think that their primary concern would be to protect their risk. I am only wanting to borrow 21% of the value of the house. And by not letting me move they are holding me to a higher value mortgage.

I am yet to here a good reason

The good reasons are to do with perceptions, not facts.

You are looking to reduce your mortgage by 40k - by downsizing form an 800k property. Unless you really are going to a 760k property, not only are you reducing their exposure to you, you are reducing their cover even more substantially.

Perhaps they have experience of accounts going delinquent after doing as you propose?

David_Hutley

You are looking to reduce your mortgage by 40k - by downsizing form an 800k property. Unless you really are going to a 760k property, not only are you reducing their exposure to you, you are reducing their cover even more substantially.Perhaps they have experience of accounts going delinquent after doing as you propose?

So what your saying is that wanting to borrow less is a sign of weakness in itself?. It is obviously not being seen as a prudent move in a potentially fluctuating market to protect my current asset and reduce my risk!.

I was actually looking at something around £675,000 to £725,00. It would cost £50k to move including stamp duty and fees. The end results would still be the same lending ratio or less. How much cover do they need, that house is worth £800k, if it fell in price by 50% they would still be fine.We do know how much we would need until we find a house, we cant buy till we sell and I cant do either untill I got an answer from YBS.

If I cant borrow money when I have so much capital and income then god help others. The mortgage companies are slamming the door now the horse has bolted and stand a good chance wrecking what is left of the housing market.
:mad:

gratefulforhelp_2

I have just remortgaged with YBS and have 2.5k on a credit card each month which is paid in full each month and this has not been counted as a debt.

The problem you have is companies will rarely disclose the real or full reason for not doing as you wish, and however annoying, that is their prerogative.

dimbo61

Hi David ,
i spoke to my local YBS branch manager only the other day and she told me that under current lending rules, affordability and other factors they cant lend to many current customers the amount they already owe!!!
when customers call in to ask for extra borrowing for a new car/kitchen etc the computer say NO!!!
YBS has some great deals but very tough lending policy
Maybe time to trade down and be Mortgage Free !

Trollfever

with a £175k tracker mortgage at 0.45% above base for the life of the mortgage. I was told that this was portable but depending on you meeting the criteria.

If I was running the YBS mortgage book in the current climate, I would want to get rid of customers with deals like this!

David_Hutley

If I was running the YBS mortgage book in the current climate, I would want to get rid of customers with deals like this!

I agree, so would I. The fact is they made a commitment at the outset of the mortgage saying that it was portable. The caveat of meeting the current criteria should have some control. If criteria has no control then this criteria could be that they do not lend - full stop.

With the current climate I am not sure if I am better of selling and investing what I pay now in a mortgage or sitting tight and potentially taking a hit and the house value. I have worked out that even if markets fell by 20% I would still be better off in 10 years if I stay where I am.

dimbo61

You have cheap lending and unless you need to sell up and move why not sit tight
buying and selling costs money ( big money over £500,000 with that stamp duty ) and the fact that we are not building nearly enough houses to meet demand means prices will rise
Its only a matter of when