April 26th implications

amnblog

Leon_W wrote: »

discussing how much they spend on haircuts

My understanding is that monthly spend on 'grooming products' on budget planners covers downstairs as well as upstairs.

amnblog

claire_n037 wrote: »

How awful, we were always told student loans wouldn't count!!

We were told student fees would not increase!

Leon_W

Doesn't cost me anything that. I have a lady that does.

kerri_dfw

amnblog wrote: »

My understanding is that monthly spend on 'grooming products' on budget planners covers downstairs as well as upstairs.

This has just made me chortle

Waino696969

Mortgage_Mark wrote: »

As soon as you have your mortgage offer, there are no further stages of underwriting by the lender, so you should be fine. It's over to the solicitor from that stage and the lender just releases the funds to the solicitor when needed.

Phew! That's a big relief. We've got our offer and should have exchanged contracts before the 26th. The thought of our lender pulling the offer because of some trivial discretionary spending did get me worrying.

Fingers crossed we'll be ok.

cbrpaul

Waino696969 wrote: »

Phew! That's a big relief. We've got our offer and should have exchanged contracts before the 26th. The thought of our lender pulling the offer because of some trivial discretionary spending did get me worrying.

Fingers crossed we'll be ok.

My re-mortgage is due for a 1st May completion , bank all happy and all agreed , just waiting on solicitors to transfer funds 1st May !!


Fingers crossed here also !!

marlasinger

I've noticed that Woolwich's Intermediaries Affordability calculator has changed, presumably for MMR. Last week it was telling me I could borrow around £150,000 but this has now gone down to around £130,000. :eek:

Is this likely to have an impact on house-prices? If people can't borrow as much, then hopefully prices will come down a bit (or at least stop going up).

kingstreet

I don't think so. Plenty of people without childcare, student loans etc are going to find they can borrow more from May, so one lot of buyers will simply replace another, IMHO.

Our Woolwich BDM was recently telling us that some borrowers will effectively be able to borrow eight times salary due to the way the new affordability rules work.

Leon_W

I think a lot of lenders are going to play it quite cautiously for a few months after the 26th and then see how the land lies then.


A couple of things will emerge in time. Particular lenders will be very busy and others will be twiddling their thumbs. The only option for the thumb twiddlers to get any business is relax criteria or increase affordability as despite rumours to the contrary it is still quite a competitive market for the A1 borrowers.


Once the dust settles I'm sure we'll end up with affordability being about where we are now but with more paperwork.


Reminder to self. Order more ink.

JohnDoe1

Will the MMR allow people with savings but no income to get a mortgage?

It should use more common sense and should be able to distinguish that the risk that someone with say £70k+ of savings but no earned income is probably better off than someone earning £20k with minimal savings. This is especially the case for BTL mortgages.