64% of FTB's have parental help

Percy1983

HAMISH_MCTAVISH wrote: »

True.



False.

Banks can and do change their credit scoring criteria on a weekly, and sometimes daily, basis to ration the amount of funds available to lend.

Last year, there was enough funds to lend around 400 mortgages at 90% LTV each month in the UK between all the banks combined.

If they only had 400 applicants that month that met a certain set of credit scoring criteria, then great.

When they had more than 400 applicants, some were shunted down to 85% mortgage offers, and then some of the 85% were shunted down to 80%, and so on, until enough dropped out that the limited available funds were rationed.

Where any individual credit score/risk profile fits within the banks eligibility criteria for any given product changes on a monthly, weekly and even daily basis.

It is entirely possible for banks to offer one LTV product on AIP, and then change it to a worse LTV product by the time it reaches full acceptance, as they've simply run out of funds at the higher LTV.

In fact, we've seen such cases on threads here on MSE.

How can they have enough for 400 90% mortgages, sure that depends how much the original prices are.

As far as AIPs go its the same with credit cards, etc they don't check every last detail and do a full search, the full search can effect the outcome.

I will agree criteria may be changing on daily/weekly basis, but the changes will be minor tweaks to which there may well be people in the margins who could potentially be better/worse off from one day to the next.

My point is these swings aren't going to massive and the better the application the less effected it would be by small swings.

In my case the bank was willing to lend me £165k, yes the day after it may have been £150k or £167k, either way I would still get accepted for the £83k I asked for. On that basis I can be confident I would have been accepted on any day of the week.

So back to my point a strong application will get accepted everytime, yes there maybe changes in the margins but it isn't random from top to bottom as you make out.

HAMISH_MCTAVISH

Percy1983 wrote: »

a strong application will get accepted everytime,

That entirely depends on how many other strong applications are accepted that day, week or month.

The amount of funds available to lend at 90% LTV is tiny.

If 500 equally good applications were accepted, the bank would only have to find a way to reject (or more likely bump into 85% LTV) 100 of them.

If 5000 equally good applications were accepted, the bank has to find a way to bump 4600 of them.

So your claim, that funding is available to as many good applicants as can apply, is absolutely baseless.

yes there maybe changes in the margins but it isn't random from top to bottom as you make out.

I've never said it was random.

I've said that the rate and/or LTV you are offered is all down to the luck of the draw as to how many other applicants of comparable scores apply on the same day, week or month as you do.

Percy1983

HAMISH_MCTAVISH wrote: »

That entirely depends on how many other strong applications are accepted that day, week or month.

The amount of funds available to lend at 90% LTV is tiny.

If 500 equally good applications were accepted, the bank would only have to find a way to reject (or more likely bump into 85% LTV) 100 of them.

If 5000 equally good applications were accepted, the bank has to find a way to bump 4600 of them.

So your claim, that funding is available to as many good applicants as can apply, is absolutely baseless.



I've never said it was random.

I've said that the rate and/or LTV you are offered is all down to the luck of the draw as to how many other applicants of comparable scores apply on the same day, week or month as you do.

So the banks are lending 100% of what they can?

chewmylegoff

Percy1983 wrote: »

How can they have enough for 400 90% mortgages, sure that depends how much the original prices are.

As far as AIPs go its the same with credit cards, etc they don't check every last detail and do a full search, the full search can effect the outcome.

I will agree criteria may be changing on daily/weekly basis, but the changes will be minor tweaks to which there may well be people in the margins who could potentially be better/worse off from one day to the next.

My point is these swings aren't going to massive and the better the application the less effected it would be by small swings.

In my case the bank was willing to lend me £165k, yes the day after it may have been £150k or £167k, either way I would still get accepted for the £83k I asked for. On that basis I can be confident I would have been accepted on any day of the week.[\b]!

So back to my point a strong application will get accepted everytime, yes there maybe changes in the margins but it isn't random from top to bottom as you make out.

You're probably right, but if you had applied for a limited offer say 1.79% 2 year discount, you might suddenly find yourself being offered a tracker at base rate +5.99%.

The smaller your deposit the more likely something like this is to happen as banks can only lend limited amounts to people with small deposits due to the capital requirements in place.

HAMISH_MCTAVISH

Percy1983 wrote: »

So the banks are lending 100% of what they can?

The banks are maximising their profits while at the same time constantly adjusting lending mix to stay within the new capital withholding requirements.

Which is why the BOE and government are stepping in with all these schemes to try and bypass some of the unintended consequences of those regulations and increase lending.

Graham_Devon

wotsthat wrote: »

What point have you proven? Nothing to do with the OP whatever it is.

I said you are the same every time a point is proven.

Never said I had proven a point. Rather that if I did, you'd do this sort of thing, but you did it anyway.

Dear god, will you read?

chewmylegoff

So just to summarise there is no point to this thread?

Graham_Devon

chewmylegoff wrote: »

So just to summarise there is no point to this thread?

Thr thread has a point. Do you?

chewmylegoff

Graham_Devon wrote: »

Thr thread has a point. Do you?

My point is that you don't seem to have a point. But I expect my point is pointless.

wotsthat

Graham_Devon wrote: »

I said you are the same every time a point is proven.

Never said I had proven a point. Rather that if I did, you'd do this sort of thing, but you did it anyway.

Dear god, will you read?

Have you heard the one about a cat in a box, some radioactive material and some hydrocyanic acid? RSPCA aren't happy.