There is something seriously wrong with your industry. Change is needed

amnblog

HENRY78 wrote: »

So if your self employed and you have a baby 3/4 years ago and therefore your income drops in that year (As it does if you are Employed) Your income on the application drops as they take a 3 year average. Where is the logic?

The logic is that you are starting/growing a family and that is impacting on your income.

HENRY78

So If you have a couple who are employed and had a baby 3/4 years ago they just ask for the most recent payslip and don't worry about the fact you have a growing family and the impact that has on your income?

csgohan4

HENRY78 wrote: »

So If you have a couple who are employed and had a baby 3/4 years ago they just ask for the most recent payslip and don't worry about the fact you have a growing family and the impact that has on your income?

Quite the opposite, They take all your social factors into account.


I think that is reasonable as banks are making sure they doing everything necessary and making no risks or at least minimal before lending that amount of money.


Do you give your friend 20k or do you ask how he is going to pay you back? If the former you are naïve.

HENRY78

Rent or Mortgage. Its one of life's necessities. If you don't pay your mortgage or your rent you will lose your house. Its as simple as that.


Taking out a mortgage is often cheaper than renting (Certainly where I live for some reason) So if a couple or an individual has managed by hook or by crook managed to get together a 10% deposit and are looking to borrow x4 income. The lenders/FCA need to make the process as easy and pain free as possible. currently from my experience and others I know. It is complete overkill currently and is plainly ridiculous IMO.


We all need somewhere to live.

csgohan4

We get that your angry and frustrated you can't get a house of your own or those that are young are less likely to do so, but it is what it is. All you have control over is your own destiny and do the best you can to tick the boxes. Raging will not sway the banks one bit.

csgohan4

HENRY78 wrote: »

Rent or Mortgage. Its one of life's necessities. If you don't pay your mortgage or your rent you will lose your house. Its as simple as that.


Taking out a mortgage is often cheaper than renting (Certainly where I live for some reason) So if a couple or an individual has managed by hook or by crook managed to get together a 10% deposit and are looking to borrow x4 income. The lenders/FCA need to make the process as easy and pain free as possible. currently from my experience and others I know. It is complete overkill currently and is plainly ridiculous IMO.


We all need somewhere to live.

You must understand why they had to put extra security in, since the sub prime disaster and people unable to pay back 125% mortgages and defaulting, leading to the current recession.


We don't want another recession because the banks are giving out loans left right and centre.

HENRY78

I own my home. have done since I was 21. Now 39


At the worst time of the financial crisis in 2009 only 1.57% of all mortgages were in arrears. So 98.43% were all up to date. This was at a time where we had self cert & 125% mortgages. etc Of this 1.57% only a fraction resulted in repossessions


Agree that something needed to be done but we have gone completely the other way now.


Why cant we get it right? There has to be some middle ground.

libf

HENRY78 wrote: »

Rent or Mortgage. Its one of life's necessities. If you don't pay your mortgage or your rent you will lose your house. Its as simple as that.


Taking out a mortgage is often cheaper than renting (Certainly where I live for some reason) So if a couple or an individual has managed by hook or by crook managed to get together a 10% deposit and are looking to borrow x4 income. The lenders/FCA need to make the process as easy and pain free as possible. currently from my experience and others I know. It is complete overkill currently and is plainly ridiculous IMO.


We all need somewhere to live.

Try getting enough of a deposit together and then being able to get enough of a mortgage as a single applicant to buy somewhere. That's fun!

HENRY78

Ridiculous isn't it. How have we got to this point?


Where I live in an average town in the home counties a moderate 1 bed flat is around £160,000


So someone on the average wage of £25,000 would only be able to borrow max £125k. Take into account legal fees stamp duty etc. That person would need to get together a minimum of £40,000! Nuts.


So this person would need to rent and would like their own space and the freedom my generation enjoyed without too much of an issue. Problem is it would cost £800 pcm + Council tax at £100 per month, plus bills etc. So there is no way of saving up for a deposit any time.

mrginge

HENRY78 wrote: »

At the worst time of the financial crisis in 2009 only 1.57% of all mortgages were in arrears. So 98.43% were all up to date. This was at a time where we had self cert & 125% mortgages. etc Of this 1.57% only a fraction resulted in repossessions

Hmm.
So your assessment of the worst financial crisis for decades is that 'not many people lost their house, so everything was really ok'

Thank god we didn't need to have six years plus of .5% interest rates, smi, billions in bank bailouts, stamp duty concessions, billions in QE and two periods of recession.