Best option finically

MobileSaver

Sarah1Mitty2 said:

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.

On the contrary, 100K+ earners will just cut down their four foreign holidays a year to two and only eat out at a posh restaurant twice a week instead of five. I can tell you're not a six figure earner if you think plenty are going to be in trouble.

Sarah1Mitty2 said:

A house isn`t a place to keep money or put debt at the moment though, however much you earn.

What a silly thing to say. Everyone has to live somewhere and as adults most of us aspire to something more than living with parents under their rules or living in a bedsit in an undesirable part of the city; so a house giving you your own independence and life is probably one of the best places you can keep your money.

MobileSaver

mi-key said:

BikingBud said:

mi-key said:

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 ! 

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.

I agree, people I know who are running businesses always seem to be crying out for minimum wage staff. In fact just today I noticed two "staff vacancy apply within"-type signs when I popped into town earlier.

Sarah1Mitty2

mi-key said:

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.

I agree, the end of cheap money will see lay offs in banking and tech start ups for example, that will mean even less money going into the global property bubble in various cities around the world.

Sarah1Mitty2

MobileSaver said:

Sarah1Mitty2 said:

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.

On the contrary, 100K+ earners will just cut down their four foreign holidays a year to two and only eat out at a posh restaurant twice a week instead of five. I can tell you're not a six figure earner if you think plenty are going to be in trouble.

Sarah1Mitty2 said:

A house isn`t a place to keep money or put debt at the moment though, however much you earn.

What a silly thing to say. Everyone has to live somewhere and as adults most of us aspire to something more than living with parents under their rules or living in a bedsit in an undesirable part of the city; so a house giving you your own independence and life is probably one of the best places you can keep your money.

Your first point is just another generalisation, are you saying that no 100k earners will have trouble paying their mortgage?

Your second point misses the point that I made, I said that in my opinion at the moment, and specifically in the OP`s case, property is not a safe asset class for parking cash (some of it borrowed!) or being leveraged on debt, that is because interest rate rises are going to cause values to drop, and it is the most illiquid asset class you can get, notoriously hard to sell in a downturn.

MobileSaver

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

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.

On the contrary, 100K+ earners will just cut down their four foreign holidays a year to two and only eat out at a posh restaurant twice a week instead of five. I can tell you're not a six figure earner if you think plenty are going to be in trouble.

Your first point is just another generalisation, are you saying that no 100k earners will have trouble paying their mortgage?

No, of course not. In all walks of life there are the few that simply make bad choices.

Whether that be the billionaire who loses it all on Bitcoin, the £100k+ earner who lives beyond his means or the minimum-wage earner who sells his home to rent instead and is still paying his landlord's mortgage 14 years later...

Sarah1Mitty2 said:

Your second point misses the point that I made, ... property is not a safe asset class for parking cash

No, you are the one missing the point and it's the same mistake the HPC crowd have been making for almost 20 years...

For the OP and most people here, a property is not an asset class, it's their home! Until you understand this fundamental truth you will keep making the same mistake over and over again.

Sarah1Mitty2

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

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.

On the contrary, 100K+ earners will just cut down their four foreign holidays a year to two and only eat out at a posh restaurant twice a week instead of five. I can tell you're not a six figure earner if you think plenty are going to be in trouble.

Your first point is just another generalisation, are you saying that no 100k earners will have trouble paying their mortgage?

No, of course not. In all walks of life there are the few that simply make bad choices.

Whether that be the billionaire who loses it all on Bitcoin, the £100k+ earner who lives beyond his means or the minimum-wage earner who sells his home to rent instead and is still paying his landlord's mortgage 14 years later...

Sarah1Mitty2 said:

Your second point misses the point that I made, ... property is not a safe asset class for parking cash

No, you are the one missing the point and it's the same mistake the HPC crowd have been making for almost 20 years...

For the OP and most people here, a property is not an asset class, it's their home! Until you understand this fundamental truth you will keep making the same mistake over and over again.

I`m not sure how closely you are following the thread, originally the OP thought they could borrow 110k, they were advised that values would likely drop so they should wait and preserve/increase their savings plus avoid putting borrowed money into a property purchase in this economy, later the bank told them that they would only be able to borrow 50k, so the original advice that the lending market has changed dramatically and they should wait is sound, you seem to be a bit in denial about how the UK economy and property market functions? I`m not 100% sure why that is because you come across as intelligent and quite knowledgeable at times.

MobileSaver

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

Your second point misses the point that I made, ... property is not a safe asset class for parking cash

No, you are the one missing the point and it's the same mistake the HPC crowd have been making for almost 20 years...For the OP and most people here, a property is not an asset class, it's their home! Until you understand this fundamental truth you will keep making the same mistake over and over again.

they were advised that values would likely drop so they should wait

Wait for how long? How long should people remain in a less-than-ideal home life when they could just get on with living their own life and independence? A year, five years, fourteen years perhaps and then realise what a monumental mistake they've made?

The OP's problem is exactly why choosing to wait is such a bad idea; currently house prices are continuing to rise and yet still their lender has dramatically changed the lending criteria making it much harder if not impossible for the OP to buy.

This is another of the basic flaws in HPC thinking; crashaholics convince themselves that house prices will drop by up to 50% but that magically everything else will stay the same. The reality is that lending approval becomes stricter, lending amounts become less and interest rates are higher while job security is worse, fewer properties come on the market and those that do are often the least desirable anyway.

History tells us quite plainly that when prices are falling it's harder than ever to buy your own home.

Sarah1Mitty2

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

Your second point misses the point that I made, ... property is not a safe asset class for parking cash

No, you are the one missing the point and it's the same mistake the HPC crowd have been making for almost 20 years...For the OP and most people here, a property is not an asset class, it's their home! Until you understand this fundamental truth you will keep making the same mistake over and over again.

they were advised that values would likely drop so they should wait

Wait for how long? How long should people remain in a less-than-ideal home life when they could just get on with living their own life and independence? A year, five years, fourteen years perhaps and then realise what a monumental mistake they've made?

The OP's problem is exactly why choosing to wait is such a bad idea; currently house prices are continuing to rise and yet still their lender has dramatically changed the lending criteria making it much harder if not impossible for the OP to buy.

This is another of the basic flaws in HPC thinking; crashaholics convince themselves that house prices will drop by up to 50% but that magically everything else will stay the same. The reality is that lending approval becomes stricter, lending amounts become less and interest rates are higher while job security is worse, fewer properties come on the market and those that do are often the least desirable anyway.

History tells us quite plainly that when prices are falling it's harder than ever to buy your own home.

But you have just told us that prices are still going up, but the OP`s bank have more than halved the amount they are willing to lend, how do you think that fits with your theory?

alidai

MobileSaver said:

mi-key said:

BikingBud said:

mi-key said:

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 ! 

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.

I agree, people I know who are running businesses always seem to be crying out for minimum wage staff. In fact just today I noticed two "staff vacancy apply within"-type signs when I popped into town earlier.

Hahaha, do you really think the £100k jobs are being advertised on A4 pieces of paper in town centre shops!!

MobileSaver

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

Your second point misses the point that I made, ... property is not a safe asset class for parking cash

No, you are the one missing the point and it's the same mistake the HPC crowd have been making for almost 20 years...For the OP and most people here, a property is not an asset class, it's their home! Until you understand this fundamental truth you will keep making the same mistake over and over again.

they were advised that values would likely drop so they should wait

Wait for how long? How long should people remain in a less-than-ideal home life when they could just get on with living their own life and independence? A year, five years, fourteen years perhaps and then realise what a monumental mistake they've made?

The OP's problem is exactly why choosing to wait is such a bad idea; currently house prices are continuing to rise and yet still their lender has dramatically changed the lending criteria making it much harder if not impossible for the OP to buy.

History tells us quite plainly that when prices are falling it's harder than ever to buy your own home.

But you have just told us that prices are still going up, but the OP`s bank have more than halved the amount they are willing to lend, how do you think that fits with your theory?

Er, because the two are not mutually exclusive?!?!

Just because it's harder to buy when prices are falling doesn't mean it can't be hard to buy when prices are rising. I'm not privy to the OP's personal financial situation or Halifax's particular lending criteria or any changes either have made in the last six months so can't give you a more detailed answer than that.

In the OP's case waiting has proven to be disastrous and as the OP themselves said a few days ago, "I should have bought before".