95% newbuy mortgage

shortchanged_2

The_J wrote: »

194k was taking into consideration the loans and credit cards.

God and I wonder why this country is in serious financial sh*t.

The_J

shortchanged wrote: »

God and I wonder why this country is in serious financial sh*t.

Haha if it helps any I agree with you.

All I'm saying is it can be done. If it all goes pear shaped then it's Natwest's fault for saying yes. They have more information than you or I do and decades of experience in the market with clever people making risk decisions.

The Natwest mortgage book is decent to be fair. If the commercial arm of RBS and various other nameless departments were as good they would not have needed bailing out.

leveller2911

The_J wrote: »

If the debt is sustainable what is the problem with it?


The OP and wife have a joint income of over £50k and yet have credit card balances of £17k and that without the other debts.That amount of debt is not sustainable when at the same time they want to get a 95% Newbuy mortgage..


You think the government should stop paying the public sector until the UK's debt is paid off?

I think Governments should act responsibly with the countries finances.So if that means bringing down the deficit so that we pay 2% interest on money we borrow from the markets rather than not bringing down the deficit and paying 7-8% interest then yes bring it down

That is what you are potentially asking the OP to do. Stop living their life and pay off a debt first.

Absolute rubbish, I am saying they should prioritise their debts and bring them down and at the same time save for a decent deposit.

What you are recommending is exactly what we have seen happen for past 20yrs and the results of which we are all having to endure....



Debt is bad, it should be avoided, but it is often a means to an end.

"Means to an end" not that old chestnut. I would take "responsible borrowing" over that any day of the week.You'll be sending PM,s to posters next touting for business.;)


The fact that you are an IFA I find shocking and may well sum up the the problems with the IFA industry.

squeeks

This thread has been a bit of an eye opener for me. I hadn't realised that someone with a negative worth would be able to get a mortgage, as if they had a deposit.

...
Mr & Mrs Smith have a joint income of 50k and want to buy a house for 100k. Mr & Mrs Smith have no debts and no deposit.

They go to the bank, and ask for a loan of 100k which the bank refuses as they have no deposit and the bank can't offer 100% LTV as that would be irresponsible of them.

Mr & Mrs Smith get a personal loan for 10k from the bank, the bank is now happy to lend Mr & Mrs smith 90k as they have 10k deposit and they meet the 90% LTV requirement.

Mr & Mrs Smith pay all the fees on credit cards as they move in, so all in Mr & Mrs Smith have borrowed 115% of the value of the home they have purchased, and live happily ever after...
...

LTV really is a farce, and it appears subprime is still alive and kicking. As another poster said, no wonder we're forked.

leveller2911

The_J wrote: »

Haha if it helps any I agree with you.

All I'm saying is it can be done. If it all goes pear shaped then it's Natwest's fault for saying yes.






Does the "J" stand for Joke?.This thread should tell the OP all they need to know about the advice you have given.

Don't you get paid for giving advice and I wonder how many of your customers would be happy reading this.People pay you for giving them good ,sound financial advice and yet you don't give a !!!! if it goes pear shaped because its not your fault and you obviously don't care.....

There are planty of cowboys in my industry (Building) and we see programmes every week about cowboy builders so maybe its time they produced a few on Financial Advisors..

The_J

Sorry leveller I thought you were being serious. I didn't realise you were just another brain dead idiot. My apologies.

Please refrain from slandering me though. Thanks.

I think Governments should act responsibly with the countries finances.So if that means bringing down the deficit so that we pay 2% interest on money we borrow from the markets rather than not bringing down the deficit and paying 7-8% interest then yes bring it down

I'm sorry, I had to bite. Aside from agreeing with me that sustainable debt is perfectly acceptable, you realise that the UK is currently borrowing at 2%? If we were borrowing at 7-8% we'd be called Greece.

leveller2911 wrote: »

There are planty of cowboys in my industry (Building) and we see programmes every week about cowboy builders so maybe its time they produced a few on Financial Advisors..

I am regulated by the FSA and as such have to show as a matter of course that my advice in every situation is fair for the customer. This is far more rigorous than anything you will ever see. Natwest are also regulated by the FSA, if they were being reckless the FSA could easily stop them so tell me, Mr Builder, what it is that I am doing wrong aside from disagreeing with you that this is unaffordable?

Not sure if it's relevant but no client of mine has ever been repossessed either.

The_J

How is this subprime squeeks? Subprime is ADVERSE credit, i.e the debt is not being sustained. If the debt is being paid, what's the problem?

squeeks

leveller2911 wrote: »

Don't you get paid for giving advice and I wonder how many of your customers would be happy reading this.People pay you for giving them good ,sound financial advice and yet you don't give a !!!! if it goes pear shaped because its not your fault and you obviously don't care.....

There are planty of cowboys in my industry (Building) and we see programmes every week about cowboy builders so maybe its time they produced a few on Financial Advisors..

My experience of a financial advisor is either they are clueless (I'll skip that one in this case ) or they tell you how to get where you want to be, but it tends to be a "be careful of what you wish for" scenario. As with a builder, if you ask them to knock a wall down, they will. A bad builder won't put in lintels in and it will be unsafe, a good builder will do a fantastic job. However you have to be aware that your bathroom will now be a little less private and a little more draughty.

In this case, yes you can buy the house, but you'll probably be bankrupt in a year and loose it. If you change a few things and you may be on an IVA for the CC's..... but you got the house! of course house prices could go up and you could MEW.. (not a serious proposition btw, but reflecting some peoples mentality!!!!)

Also in J's defence he hasn't been paid for his advice in this instance and he doesn't have all the facts at hand, but is pointing out that products do exist for people in this scenario.

leveller2911

The_J wrote: »

I'm sorry, I had to bite. Aside from agreeing with me that sustainable debt is perfectly acceptable, you realise that the UK is currently borrowing at 2%? If we were borrowing at 7-8% we'd be called Greece.

Yes I know we are borrowing at 2% interest rather than 7-8% like Greece.Why do you think the markets lend to us at 2%? could it be because we are a good bet that they will get all of their money back? if so why do you think they have confidence in us? could it be because we are dealing with our debts ?... .

shortchanged_2

And after they get this nice big mortgage along comes the patter of another little drain on the resources.

Cue the start of another thread in a year or so of....... 'Can we go to IO for a while as we are struggling to pay the mortgage as the Mrs is on mat leave and everything is costing twice as much.'