£20,000 deposit but no mortgage!

Finchy2018

£20,000 where I live is less than 10% deposit, before you get to what the bank would actually lend us. Not in London and we just bought a 1 bedroom house so I personally, am not that surprised they have not been able to buy.

ViolaLass

BML wrote: »

"You need to give some USEFUL information. And you need to accept that a general level of criticism of people being refused a mortgage exists or do you deny that?

But you've given really vague info. Maybe this guy did ask for more than the banks think he can afford, maybe he has terrible credit history, maybe he's trying to buy in Central London, maybe he's massively in debt (along with the savings), maybe he has a gambling habit...

lots of possible reasons, plenty of which people would see sense in.

Bermonia

OP either provide more information or close the thread as this is a pointless question otherwise.

BML

Do you accept that a general level of criticism of people being refused a mortgage exists or do you deny that?

bigisi

BML wrote: »

Do you accept that a general level of criticism of people being refused a mortgage exists or do you deny that?

Why are you harping on about that?

Why would anyone want to criticise someone for not being able to get a mortgage. If you gave pertinent information rather than going off on a tangent which reinforces your obvious pre-determined idea of other people’s views you may get some accurate answers.

Anyway, I though you wanted to leave it?

so lets [sic] just forget it

BML

My wife just reminded me that our first mortgage in 1966 cost us £19.00 a month and my wages were £17.00 a week so having been in the Regular Army I joined the Territorial Army to help pay the mortgage. You totally misunderstand me if you think that I'm criticising someone for not being able to get a mortgage. I'm criticising a system that places first time buyers in a system that makes it extremely difficult to obtain a mortgage and I would like to understand why this should be. You appear to be looking for ways to blame those unable to obtain a mortgage rather then looking at the macro economics of the situation.

foxy-stoat

BML wrote: »

My wife just reminded me that our first mortgage in 1966 cost us £19.00 a month and my wages were £17.00 a week so having been in the Regular Army I joined the Territorial Army to help pay the mortgage. You totally misunderstand me if you think that I'm criticising someone for not being able to get a mortgage. I'm criticising a system that places first time buyers in a system that makes it extremely difficult to obtain a mortgage and I would like to understand why this should be. You appear to be looking for ways to blame those unable to obtain a mortgage rather then looking at the macro economics of the situation.

Yes it is very difficult to obtain a mortgage for the first time, always has been since the mortgage market went to !!!!.

£20,000 deposit without knowing a purchase price doesnt mean anything, it could be a 10% deposit or 1%. Generally 4 times salary is what you can borrow at interest rates at 2-3%

Paying £19 a month and wages of £884 a year 53 years ago is not a good comparison - how much was the property you bought back then?

In 1966 the average house price was £2000 and interest rates around 6-7%, thats just over 2 times your salary back then.

Unfortunately your numbers are still meaningless.

Broadyx

BML wrote: »

Do you accept that a general level of criticism of people being refused a mortgage exists or do you deny that?

I deny it based on the information you have provided. What purchase price was he looking at, and what is his income and outgoings amount? Then I will provide an answer to your question.
Why are you being so obtuse in answering anyone's questions?

d0nkeyk0ng

Have a look on the front of this website and you'll find some mortgage calculators. This one tells you how much you might be lent based on income:



https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing


Let's play with some figures because it'll make it easier to understand:


Deposit = £20k
Annual salary = £25k/yr
Maximum borrowing will be 4.5x salary = £112k
Likely max affordable home will be £112k + 20k = £132,000


In actuality, it's more complicated than that because outstanding debt (loans, credit cards), PCP for car payments, children etc all reduce the amount someone can borrow. Also, if interest rates go up, you need to be able to afford the payments. This gets taken into consideration.


A £132k price could buy a nice house in some areas, and couldn't cover the cost of a studio flat in other areas.

BML

I think that we paid £2,800 for our first house. All that I’m asking for are comments on what appears to me regular reports of first time buyers being denied a mortgage. You appear to be vigorously attempting to protect those responsible for granting mortgages. The same house we bought in the early 1960s is now going for £350,000. Average wage is shown on the Internet for a labourer which was basically what I was then is now £20,000 so were a labourer to be able to get a mortgage it would take about eighteen times the labourers average wage to pay it for.