A generation are being priced in order to keep the value up of their parents assets.

olly300

Graham_Devon I couldn't work out their post either.

Also no-one should presume that they will inherit from their parents. If one or both their parents need care then their house will be sold to pay for that.

Oh and a credit rating of 920 means absolutely nothing as all financial companies i.e. mortgage providers have their own system.

Graham_Devon

olly300 wrote: »

Graham_Devon I couldn't work out their post either.

Also no-one should presume that they will inherit from their parents. If one or both their parents need care then their house will be sold to pay for that.

Oh and a credit rating of 920 means absolutely nothing as all financial companies i.e. mortgage providers have their own system.

Shared ownership, which is what the poster described, is always different. I got turned down by about 3 lenders, simply because it was SO.

With SO, (although I can't remember the exact details) the mortgage lender cannot repossess the house, as it's not totally theres, the HA owns a chunk too. So that's a big problem for the lender, hence they are always more careful when lending, and take far less risk when looking at your wage vs your mortgage amount.

The deposit will be based on the share you are buying, so if you are buying 25% of a 100k house, a 30% deposit wouldn't be 30k, it would be £7,500. (30% of the 25% share).

Don't know what kind of share the person was talking of, but if its the regular 40%, a £12,000 deposit, and a £900 mortgage payment (plus the rental payment and service charges) looks high risk to me, especially so when their affordability is based on two incomes. The lender would ask what happens if one loses their job and they can't afford the payments....as the lender can't go through the normal routes.

olly300

Graham_Devon even though you have explained SO figures the fawd1's post is confusing as it simply doesn't make sense.

There are SO properties in London whose 100% value go up to £705,00 so the figures could be just for the mortgage.

I know someone outside London with a 40% share and all in their rent and mortgage is just under half the figure fawd1 has written. So presuming their figure is for a place in or near London were the £900 covers mortgage and rent they still couldn't afford the property due to the service charges and the fact that the rent part will increase over the term.

JonnyBravo

olly300 wrote: »

Some people just don't like asking.

But they like complaining after the fact? They should think about that before they start complaining.

olly300 wrote: »

Though the credit checks just show a tenants pass financial history and like with shares pass performance is not an indication of future performance. I know landlords' who have been screwed by supposedly good tenants on paper.

Of course.
I'm not sure I've come across any kind of check available that reveals the future. :cool:

Percy1983

HAMISH_MCTAVISH wrote: »

Thanks for posting a real world example of what we've known and been discussing on this board for some years now.

People are being forced to enrich their landlords instead of themselves, and rent is now more expensive than a mortgage payment in 90% of the UK. (and that's using a mortgage rate of 5%, not the fantasy 0.5% some posters like to portray)

That neatly encapsulates absolutely everything that is wrong with the mortgage lending market today.

Especially when.....



It's sadly the case that decent, creditworthy, applicants are being denied mortgages every day because of mortgage rationing.

A terrible state of affairs, and neither the housing market nor wider economy can recover while it remains the case.

You never thank me for my real world example of finding a house within our means, only saving 10% and getting approved for the first mortgage we applied for.

moneyinmypocket

Pearcy loves telling everyone how much he did it his way

Percy1983

Well I do keep getting told I did the near impossible.

Eellogofusciouhipoppokunu

Percy1983 wrote: »

Well I do keep getting told I did the near impossible.

The exception proves the rule, in all internet forum debates/arguments.

wotsthat

Percy1983 wrote: »

You never thank me for my real world example of finding a house within our means, only saving 10% and getting approved for the first mortgage we applied for.

Stop the presses!

New headline "No Mortgage Rationing - Accountant Offered Mortgage".

Percy1983

wotsthat wrote: »

Stop the presses!

New headline "No Mortgage Rationing - Accountant Offered Mortgage".

An accountant who works in the public sector I will add, so wages aren't the highest and job security isn't the best.

The short is we didn't try to over stretch ourselves and we kept our credit files in good order.