Abbey shuts door on 100 per cent mortgages

runsfar

Hi I am new to this but felt compelled to reply because I see things differently having two kids who are fairly recent graduates both working hard and trying to get their careers on the go, paying back student loans, massive (London) rents, utilities and travel - hardly able to make ends meet never mind save for deposits.
At the same time it really upsets me that they are having to pay out thousands in rent each month to pay off someone else's mortgage, and have no chance to get on the property ladder and now probably never will.

What I don't understand is if the building society has the house as security what difference does it make if the mortgage is 100% or not? If you are in secure work and have a reasonable income is that not sufficient criteria?
Here in Scotland you will only be able to borrow the survey valuation of the house and not the market valuation and at the moment there is a huge discrepancy between those figures although I daresay that will change as prices start to drop.
(there's no sign of that yet up here though)

Sammz

runsfar wrote: »

Hi I am new to this but felt compelled to reply because I see things differently having two kids who are fairly recent graduates both working hard and trying to get their careers on the go, paying back student loans, massive (London) rents, utilities and travel - hardly able to make ends meet never mind save for deposits.
At the same time it really upsets me that they are having to pay out thousands in rent each month to pay off someone else's mortgage, and have no chance to get on the property ladder and now probably never will.

What I don't understand is if the building society has the house as security what difference does it make if the mortgage is 100% or not? If you are in secure work and have a reasonable income is that not sufficient criteria?
Here in Scotland you will only be able to borrow the survey valuation of the house and not the market valuation and at the moment there is a huge discrepancy between those figures although I daresay that will change as prices start to drop.
(there's no sign of that yet up here though)

Not sure which part of Scotland you are in but I've noticed one flat come down by £10k. I've watched house prices in this part of Aberdeen for years and never seen that happen before. Used to be that flats in this complex went under offer with a week. The one that has just dropped in price has been on there for about 6 weeks, I'd say.

drrobert

mr.broderick wrote: »

Thing is they'll be back again in a few months...

More likely that 'they'll be back again in a few years'. Or decades!

Sorry, but house price crashes are long and painful. This is here to stay. Get used to it!