Best option finically

sim2335

sim2335 said:

How strange, I had appointment with halifax now they can only offer me £50000 and my circumstances have not chnaged only improved, in May they could offer me £110000

This is reason I should have brought before 

Sarah1Mitty2

Not really, the bank are doing you a favour, when everyone is being down valued like this the flats you want will get cheaper, all that would have happened if you already bought would be negative equity and a flat you couldn`t sell if you were fed up with it, rent a cheap room or stay at home is the best thing at the moment.

grumiofoundation

Sarah1Mitty2 said:

Not really, the bank are doing you a favour, when everyone is being down valued like this the flats you want will get cheaper, all that would have happened if you already bought would be negative equity and a flat you couldn`t sell if you were fed up with it, rent a cheap room or stay at home is the best thing at the moment.

For clarity you are saying 100% of properties are being downvalued (everyone..?) or are you just being melodramatic?

The OP would also not be in negative equity as houses prices haven't dropped >20%.

Hedgepigs

sim2335 said:

How strange, I had appointment with halifax now they can only offer me £50000 and my circumstances have not chnaged only improved, in May they could offer me £110000

That's quite alarming. I had an AIP with Halifax this time last year. Just put the same figures into their basic calculator thingy and the amount they reckon they would lend me now has indeed about halved too, to just just under £60k.

Put the same into other banks and they are offering more or less the same as before, but Halifax are clearly not keen on taking new FTB business at the moment for whatever reason!

mi-key

Same here, put the same details into a few of the sites, Halifax are offering me just over a third what the highest ones are offering ( I know its in theory, but its the same figures on all sites ).

Weirdly if I put my income in as £100K a year, they are offering £449K  ! So they only seem to want to lend to people with high incomes ! 

BikingBud

mi-key said:

Same here, put the same details into a few of the sites, Halifax are offering me just over a third what the highest ones are offering ( I know its in theory, but its the same figures on all sites ).

Weirdly if I put my income in as £100K a year, they are offering £449K  ! So they only seem to want to lend to people with high incomes ! 

All about the risk.

If you have the skills to hold down a job paying £100k they are likely transferable and can find another similar paying job.

If you are in a job paying minimum wage, are you likely to be made redundant and not find other work?
 

Mutton_Geoff

It's also about disposable income after usual costs of living. £100k earners likely to have plenty of capacity to cover doubling mortgage payments but min wage earner not.

Sarah1Mitty2

grumiofoundation said:

Sarah1Mitty2 said:

Not really, the bank are doing you a favour, when everyone is being down valued like this the flats you want will get cheaper, all that would have happened if you already bought would be negative equity and a flat you couldn`t sell if you were fed up with it, rent a cheap room or stay at home is the best thing at the moment.

For clarity you are saying 100% of properties are being downvalued (everyone..?) or are you just being melodramatic?

The OP would also not be in negative equity as houses prices haven't dropped >20%.

Interest rate changes take time to feed into the system, I am saying everyone is having their borrowing capacity downvalued by higher rates, maybe not the best phrase to use though.

Sarah1Mitty2

Mutton_Geoff said:

It's also about disposable income after usual costs of living. £100k earners likely to have plenty of capacity to cover doubling mortgage payments but min wage earner not.

You can`t really generalise like that, plenty of 100k+ earners will be mortgaged to the hilt and now in trouble. As they say - It isn`t how much you earn, it is how much you keep that counts. A house isn`t a place to keep money or put debt at the moment though, however much you earn.

mi-key

BikingBud said:

mi-key said:

Same here, put the same details into a few of the sites, Halifax are offering me just over a third what the highest ones are offering ( I know its in theory, but its the same figures on all sites ).

Weirdly if I put my income in as £100K a year, they are offering £449K  ! So they only seem to want to lend to people with high incomes ! 

All about the risk.

If you have the skills to hold down a job paying £100k they are likely transferable and can find another similar paying job.

If you are in a job paying minimum wage, are you likely to be made redundant and not find other work?
 

I would say the opposite. Most people who earn £100K have very specific skills that may be hard to find another job earning the same. If someone can afford a mortgage on minimum wage, then they can get ANY minimum wage job to earn the same. There are a lot less jobs out there paying £100K than there are paying minimum wage.

I don't think any jobs are particularly secure these days. And if you lose your job as a global accountant manager or something, how long is it going to take to find another? 

Odd it only seems to be them though, most of the oher lenders are happy to lend to lower earners.