Over 50's will bit hit by new mortgage regulations

ukcarper

Graham_Devon wrote: »

So this isn't a real person?

I was confused, I thought someone had actually been turned down and thought there must be more to it.

As for your point, only yesterday you stated to me that someone working full time and holding down a job at the weekends with £1500 a month take home pay should share if they can't afford to rent a place, and that's just the way it is.

Yet here you are suggesting these rules could stop someone in their 50's from buying, as £308 a month could be too much.

And I'm supposed to say what? That the rules are far too harsh!? Poor 55 year old!? These people should be allowed a 25 year mortgage to reduce the mortgage payments to £160 a month otherwise it's just unfair (or something?!)

....but on the other hand I;m supposed to accept that it's life that a women in her twenties is priced out of even renting when she has a £1500 income per month!?

Talk about hypocritical mate.

No what I am saying is that if you apply a rule of 3x income for a mortgage why should that be any different for a 55 year old to a 30 year old.

I just picked one example of why somebody in their 50s might need a mortgage that they would be in a position to afford there are others.

Going back to other point they were talking about Basingstoke where median full time salary is just under £30k the median for all South East is £23.6k which is a take home of £1548. They never said what girl was earning but her rent was £750 a month which is high for 1 bed flat inBasingstoke plenty of flats available from £625

ukcarper

MouseTrap wrote: »

Presumably because the average life expectancy is around 80 years old so no bank in their right mind would lend a mortgage where the payee has less than 50% chance of living long enough to pay it off?

If person was to die before end of term loan would be paif off out of estate.

MouseTrap

ukcarper wrote: »

If person was to die before end of term loan would be paif off out of estate.

Which estate would that be? They've just had to use their life savings and sale of previous home to raise the deposit on a new flat aged 55.

Banks don't lend mortgages where it is likely they will have to repossess. At least not since the crash they don't.

You may as well askwhy don't they lend mortgages to people who can't afford the monthly repayments.

ukcarper

MouseTrap wrote: »

Which estate would that be? They've just had to use their life savings and sale of previous home to raise the deposit on a new flat aged 55.

Banks don't lend mortgages where it is likely they will have to repossess. At least not since the crash they don't.

You may as well askwhy don't they lend mortgages to people who can't afford the monthly repayments.

Try reading back through thread

Gracchus_Babeuf

Graham_Devon wrote: »

http://www.thisismoney.co.uk/money/mortgageshome/article-2222296/Mortgage-overhaul-slash-loans-50s-young-hit-crackdown.html

This is all well and good...but I'm just wondering what product will be put in place by the government to get around someone losing their home as a response to this.

"Rebuy".

This makes sense to me. I don't think anyone should be paying a mortgage past the age of 65, let alone 70. Even after age 60 is risky.

Gracchus_Babeuf

Conrad wrote: »

As ever lemon, life is not always predictable and convienient.

I get many enquiries from older people recently divorced needing to buy out thier ex, or buy a new place as they are starting a new life.

More often than not they will now find a mortgage impossible.

Keep in mind in the past the vast majority managed perfectly well, for example they;

+ Kept on working into old age (but it's hard now to get an employer to comitt to this when say the applicant is say 59 now)

+ Downsized later on

+ Used interest only as it was affordable, knowing full well they were likely to get an inheritance

+ Met a new partner later on, so affordability no issue



What is happening now is that an out of touch middle class regulatory clique, just like that which was blissfuly unaware of the Saville scandal at the BEEB, are wreaking havoc on millions of perfectly sensible capable would be owners who can't quite tick every regulator box.


This is a massive transfer of wealth to the haves from the new have nots. It makes landlords rich - is this the price worth paying?

The problem is bank cannot lend money on assumptions. You may inherit some money, you may marry a millionaire, etc. None of these things are guaranteed. Banks are being cautious and that's no bad thing after the madness of 2008.

Gracchus_Babeuf

ukcarper wrote: »

Going back to other point they were talking about Basingstoke where median full time salary is just under £30k the median for all South East is £23.6k which is a take home of £1548. They never said what girl was earning but her rent was £750 a month which is high for 1 bed flat inBasingstoke plenty of flats available from £625

Take home pay could be quite a bit lower if the person is making pension contributions.

Gracchus_Babeuf

ukcarper wrote: »

Lets take someone in their mid 50s who gets divorced after selling family home they need a mortgage of £30k to buy a small flat. They have a final salary pension of £10k can you give me a good reason why they shouldn't be given a 25 year mortgage.

Yes - the good reason is that a pensioner with a small £10k pension should not have to pay a mortgage. Mortgages are designed for people on full time salaries, and pensions are designed for people without mortgages. It's not impossible to pay a small mortgage with a pension but it might be easier for the person concerned to go into sheltered housing etc.

ukcarper

Gracchus_Babeuf wrote: »

Take home pay could be quite a bit lower if the person is making pension contributions.

Agreed but should we be comparing the average rent in a specific area to the average salary of everybody in the region when the avearge for someone in full time employment in that area is 25% more than that.

ukcarper

Gracchus_Babeuf wrote: »

Yes - the good reason is that a pensioner with a small £10k pension should not have to pay a mortgage. Mortgages are designed for people on full time salaries, and pensions are designed for people without mortgages. It's not impossible to pay a small mortgage with a pension but it might be easier for the person concerned to go into sheltered housing etc.

If it is possible to pay mortgage why should they go into sheltered housing you seem to be of the impression that somebody in their seventies can not live an enjoyable indepedent life.