Halifax and Barclays cap lending on many mortgages amid coronavirus lockdown - MSE News

fiisch

Socajam said:

jimmyjammy001 said:

Vadimtoader said:

Proportunity.co might be able to help! They give equity loans up to 25% on top of a customer’s deposit (similar to help to buy, but for any homes, not just new builds) . For anyone that has at least 15% deposit, they could still afford to buy with them and the new 60% LTV mortgages.

In these times we need to stick together and help each other.

@MSE Can you help get the message across to them?

Why encourage people to borrow more from an external company and get into more debt when the real problem is house prices being to high for first time buyers to be able to afford them? 

House prices have always been higher.
I remember when I was looking for somewhere to buy in 1988, prices were very high and I never thought that I would find somewhere.
Eventually we found a 2 bedroom flat (semi detached house converted) with a 999 year lease and 1 pound ground rent for 39,950.00 - yes that was a lot of money and interest rate was extremely high - over 10%.
Getting a mortgage as just as hard, we had to go through a broker and settle for an endowment mortgage.
Every generation go through this, it's nothing new

The difference today is that first time buyer properties can be 8-10x the average wage.  

I'm willing to bet £39,950 was likely less than 5x your average wage in 1988.  It has got progressively harder for first time buyers to get on the ladder, as the multiple of average wages versus house prices steadily increases...

Thrugelmir

fiisch said:

Socajam said:

jimmyjammy001 said:

Vadimtoader said:

Proportunity.co might be able to help! They give equity loans up to 25% on top of a customer’s deposit (similar to help to buy, but for any homes, not just new builds) . For anyone that has at least 15% deposit, they could still afford to buy with them and the new 60% LTV mortgages.

In these times we need to stick together and help each other.

@MSE Can you help get the message across to them?

Why encourage people to borrow more from an external company and get into more debt when the real problem is house prices being to high for first time buyers to be able to afford them? 

House prices have always been higher.
I remember when I was looking for somewhere to buy in 1988, prices were very high and I never thought that I would find somewhere.
Eventually we found a 2 bedroom flat (semi detached house converted) with a 999 year lease and 1 pound ground rent for 39,950.00 - yes that was a lot of money and interest rate was extremely high - over 10%.
Getting a mortgage as just as hard, we had to go through a broker and settle for an endowment mortgage.
Every generation go through this, it's nothing new

The difference today is that first time buyer properties can be 8-10x the average wage.  

I'm willing to bet £39,950 was likely less than 5x your average wage in 1988.  It has got progressively harder for first time buyers to get on the ladder, as the multiple of average wages versus house prices steadily increases...

My first mortgage was 2.75 times joint salary @ 95% in 1982.  Interest rates in the first year rose to 14%. There were no fixed term products. Everything was SVR. Maximum term was 25 years. All that bought was a small new build 2 floor flat in Selsdon. Didn't fancy buying a house in Crawley.  Couldn't afford to buy close to home. Simply out of reach. 

SamJ35

ACG said:

It looks like these LTVs will be increased in the coming days - I am not sure what to, probably not 95% but maybe 80-85%. 
I think lenders just wanted to shut off applications until they had a plan for valuations as surveyors were not going out. 

Hi ACG - this gives me some hope - have you got this on some kind of authority? My broker was about to put in our full application to Halifax on Thursday for a 90% LTV product but the products were pulled that morning. It makes sense that this is because of the lack of valuation - we cannot get surveyors out to the property at this time - but having the mortgage offer would put my mind at rest a little 

Socajam

fiisch said:

Socajam said:

jimmyjammy001 said:

Vadimtoader said:

Proportunity.co might be able to help! They give equity loans up to 25% on top of a customer’s deposit (similar to help to buy, but for any homes, not just new builds) . For anyone that has at least 15% deposit, they could still afford to buy with them and the new 60% LTV mortgages.

In these times we need to stick together and help each other.

@MSE Can you help get the message across to them?

Why encourage people to borrow more from an external company and get into more debt when the real problem is house prices being to high for first time buyers to be able to afford them? 

House prices have always been higher.
I remember when I was looking for somewhere to buy in 1988, prices were very high and I never thought that I would find somewhere.
Eventually we found a 2 bedroom flat (semi detached house converted) with a 999 year lease and 1 pound ground rent for 39,950.00 - yes that was a lot of money and interest rate was extremely high - over 10%.
Getting a mortgage as just as hard, we had to go through a broker and settle for an endowment mortgage.
Every generation go through this, it's nothing new

The difference today is that first time buyer properties can be 8-10x the average wage.  

I'm willing to bet £39,950 was likely less than 5x your average wage in 1988.  It has got progressively harder for first time buyers to get on the ladder, as the multiple of average wages versus house prices steadily increases...

Trust me it was the same, The only thing changed is that we have extremely low interest rates.
If you can trying imaging mortgage interest rate being 15%, that at least 75% of someone people's salary going just to housing.
And that was even worse if one was a single household.
It took me years before I was able to save up and buy a place, and that was just the start.
 Ask your elderly relatives how hard it was for them to buy a house that may have cost 5,000 on the wages they were making and the enormous sacrifices they had to make?
As I said every generation goes through this, nothing is knew.

Socajam

Thrugelmir said:

fiisch said:

Socajam said:

jimmyjammy001 said:

Vadimtoader said:

Proportunity.co might be able to help! They give equity loans up to 25% on top of a customer’s deposit (similar to help to buy, but for any homes, not just new builds) . For anyone that has at least 15% deposit, they could still afford to buy with them and the new 60% LTV mortgages.

In these times we need to stick together and help each other.

@MSE Can you help get the message across to them?

Why encourage people to borrow more from an external company and get into more debt when the real problem is house prices being to high for first time buyers to be able to afford them? 

House prices have always been higher.
I remember when I was looking for somewhere to buy in 1988, prices were very high and I never thought that I would find somewhere.
Eventually we found a 2 bedroom flat (semi detached house converted) with a 999 year lease and 1 pound ground rent for 39,950.00 - yes that was a lot of money and interest rate was extremely high - over 10%.
Getting a mortgage as just as hard, we had to go through a broker and settle for an endowment mortgage.
Every generation go through this, it's nothing new

The difference today is that first time buyer properties can be 8-10x the average wage.  

I'm willing to bet £39,950 was likely less than 5x your average wage in 1988.  It has got progressively harder for first time buyers to get on the ladder, as the multiple of average wages versus house prices steadily increases...

My first mortgage was 2.75 times joint salary @ 95% in 1982.  Interest rates in the first year rose to 14%. There were no fixed term products. Everything was SVR. Maximum term was 25 years. All that bought was a small new build 2 floor flat in Selsdon. Didn't fancy buying a house in Crawley.  Couldn't afford to buy close to home. Simply out of reach. 

Exactly.
Those were really hard years.  Every generation goes through this, it's nothing knew.

Loan_soldier

Socajam said:

jimmyjammy001 said:

Vadimtoader said:

Proportunity.co might be able to help! They give equity loans up to 25% on top of a customer’s deposit (similar to help to buy, but for any homes, not just new builds) . For anyone that has at least 15% deposit, they could still afford to buy with them and the new 60% LTV mortgages.

In these times we need to stick together and help each other.

@MSE Can you help get the message across to them?

Why encourage people to borrow more from an external company and get into more debt when the real problem is house prices being to high for first time buyers to be able to afford them? 

House prices have always been higher.
I remember when I was looking for somewhere to buy in 1988, prices were very high and I never thought that I would find somewhere.
Eventually we found a 2 bedroom flat (semi detached house converted) with a 999 year lease and 1 pound ground rent for 39,950.00 - yes that was a lot of money and interest rate was extremely high - over 10%.
Getting a mortgage as just as hard, we had to go through a broker and settle for an endowment mortgage.
Every generation go through this, it's nothing new

Out of interest what was 39,950.00 relative to your annual salary at the time?

fewcloudy

Loan Soldier, I agree with you.

Others here will have better memories than me I'm sure, but I remember the loan multiplier in 1992/3 as approx 3.5 X single salary, or 2.5 X joint.  Our broker helped us work out what was best as we were clueless in those days! As ever, there were always a few lenders you could get more out of, at a higher interest rate.

Interest rates were on the way down and we fixed at around 8 or 9% for a few years, clueless FTB's that we were.
Our deposit was 5%, but 100% mortgages were easily available. Us and everyone else I knew had an endowment mortgage.
The flat cost us £35000 and we put down a 5% deposit that had taken us years to save for, lol.
All product fees, solicitors fees etc were added to the mortgage

It's prime FTB property, consequently been on the market about half a dozen times since we had it. It's only a 1 bed flat in Edinburgh City centre, it sold last year for (fixed price) £190000.
As you are alluding to, it's unlikely 3.5 X salary today could buy that flat that we bought in early 1993 for 2.5 x our joint salary.