New mortgage lending rules come in this weekend

pinky28

Im a bit concerned how this will affect me. I live at home. I save 1/2 my salary every month for deposit (which is pretty much there now... just trying to find a house) I pay board to my parents, have a 12 phone contract, 10 gym and petrol/other car associated costs. So a I still have quite a bit of disposable income which I am enjoying until I buy a house. Am I going to be penalised for spending too much money on clothes and meals out when I have no intention of carrying on this way once we get our house?

Percy1983

pinky28 wrote: »

Im a bit concerned how this will affect me. I live at home. I save 1/2 my salary every month for deposit (which is pretty much there now... just trying to find a house) I pay board to my parents, have a 12 phone contract, 10 gym and petrol/other car associated costs. So a I still have quite a bit of disposable income which I am enjoying until I buy a house. Am I going to be penalised for spending too much money on clothes and meals out when I have no intention of carrying on this way once we get our house?

Surely if you are saving half your salary and paying board to your parents, so this much show a decent amount which will be available for household bills already.

Expensive phone contracts etc should be considered as they can't be cancels in most cases, but I am pretty sure they will accept that they will accept changes in behaviour after buying if they are reasonable.

CLAPTON

GeorgeHowell wrote: »

As has been said before this is an exceptionally exceptional time with record low bank rate for so long and the government pumping in cheap money to the banks. Ostensibly it fuels the recovery, but it has the useful little side effect of keeping mortgage rates low in the run up to an election.


But the forces of supply and demand still come into play and the outcome has been HPI out of proportion to CPI. Higher rates might keep price increases down but whether mortgages became more or less affordable would depend on the actual arithmetic.

in what way aren't mortgages affordable?

pinky28

Percy1983 wrote: »

Surely if you are saving half your salary and paying board to your parents, so this much show a decent amount which will be available for household bills already.

Expensive phone contracts etc should be considered as they can't be cancels in most cases, but I am pretty sure they will accept that they will accept changes in behaviour after buying if they are reasonable.

I hope so. I changed my contract from 30 to 12 recently and its 30 day rolling. Ive cut my bills as much as possible. Im usually really sensible with my money but recently the spending is too much. But like my hair dressers I pay 80 every 6 weeks but I am fully prepared to DIY once we get our own place. I partly think its a good idea but at the same time its hard enough to get on the property ladder

Percy1983

pinky28 wrote: »

I hope so. I changed my contract from 30 to 12 recently and its 30 day rolling. Ive cut my bills as much as possible. Im usually really sensible with my money but recently the spending is too much. But like my hair dressers I pay 80 every 6 weeks but I am fully prepared to DIY once we get our own place. I partly think its a good idea but at the same time its hard enough to get on the property ladder

Well its seems you have your head screwed on so hopefully this won't cause you any problems, logic says it shouldn't once you get oast the headlines.

GeorgeHowell

CLAPTON wrote: »

in what way aren't mortgages affordable?

It's in the context of looking ahead as to whether they would be affordable to the average punter given higher interest rates -- depends on the emerging equation between rates and prices which is anybody's guess.

chucky

GeorgeHowell wrote: »

It's in the context of looking ahead as to whether they would be affordable to the average punter given higher interest rates -- depends on the emerging equation between rates and prices which is anybody's guess.

The average 'punter' shouldn't be defined as someone who is able to afford to buy a house.

The average person and the average house buyer are very different things.

yertiz_2

Not much chance then of university graduates getting on the housing ladder in the next few decades due to high cost of tuition and maintenance fees. As from 2012, circa £9000 pa for tuition fees and average £4000 pa over 3 years plus interest at around 6% (2013-2014)


Here's what the Council for Mortgage Lenders (the mortgage company trade association) has said, sadly in less than plain English: "A student loan is very unlikely to impact materially on an individual's ability to get a mortgage, but the amount of mortgage available may depend on net income."

Taken from the info on this website.

GeorgeHowell

chucky wrote: »

The average 'punter' shouldn't be defined as someone who is able to afford to buy a house.

The average person and the average house buyer are very different things.

By punter I meant someone looking to buy a property with a realistic chance of doing so.

CLAPTON

yertiz wrote: »

Not much chance then of university graduates getting on the housing ladder in the next few decades due to high cost of tuition and maintenance fees. As from 2012, circa £9000 pa for tuition fees and average £4000 pa over 3 years plus interest at around 6% (2013-2014)


Here's what the Council for Mortgage Lenders (the mortgage company trade association) has said, sadly in less than plain English: "A student loan is very unlikely to impact materially on an individual's ability to get a mortgage, but the amount of mortgage available may depend on net income."

Taken from the info on this website.

it simply means that the student loan monthly repayment will affect the mortgage lender's affordability calculation as you would, of course expect: the size of the student loan will not.