Affordability worries!!!!!

northeastcanuck

caprikid1 wrote: »

House prices are yet to reflect new mortgage criteria so hopefully will come in the reach of many.

"The worst one of all though is the fact that contributing to a pension counts against you - forget that you are saving for your retirement and hopefully not be reliant on the state - this will encourage even more people not to save for old age. Appalling."

No its not appalling its sensibile analysis of what people earn and spend.

If I had both my Children in private school and combined with large pension contributions I could not afford a lottery ticket and certainly not a mortgage.

People make choices (Yes they are choices), those choice affect what they can AFFORD to borrow.

Now just apply it to BTL and lets get a sensible market.

Sorry but I just don't agree. Yes, people make choices largely based on the information available at the time. When the goalposts are moved people can find themselves in a sticky situation through no fault of their own. Affordability criteria that the banks use may or may not bear any resemblance to what people can actually afford. What I am saying is that a family could have all of the above expenditure and live very comfortably indeed but the new rules may well cause problems for them. In other words, creating problems where they don't currently exist.

Deterring people from saving for a pension is storing up problems for the future, and when the news gets out that saving for a pension could prevent you from buying a home, what do you think will happen?

I wish I could share your optimism that house prices will come into the reach of many. I, however, do not. What I think will happen is that they will remain out of the reach of those who seek to enter the market.

caprikid1

"may well cause problems for them"

When you have genuine examples of people with perfect credit files, great LTV and great affordabilitiy let us know we can then discuss with genuine examples as opposed to heresay.

pukkamum

caprikid1 wrote: »

"may well cause problems for them"

When you have genuine examples of people with perfect credit files, great LTV and great affordabilitiy let us know we can then discuss with genuine examples as opposed to heresay.

We are about to apply for our first mortgage tomorrow, LTV 41k against 70k house, affordability, £600 per month left after rent payments which is likely to be more than a mortgage, and bills etc, husband perfect credit score, mine good.
I will report back!!!!!