Debate House Prices
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Halifax turns clock back to 60s

meanmachine_2
Posts: 2,624 Forumite

If you want a mortgage, you've got to open a current account and put - get this - £1000 a month into it!!!!!!!!!!
If other banks adopt this, that'll really kick the housing market while it's down.
Also, interesting to note in the article that brokers have been blocked from offering most of the top 20 deals. *dont tell the brokers on the other part of the website...*
http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3907867.ece
If other banks adopt this, that'll really kick the housing market while it's down.
Also, interesting to note in the article that brokers have been blocked from offering most of the top 20 deals. *dont tell the brokers on the other part of the website...*
http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3907867.ece
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Comments
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But that wouldn't really be an issue would it, as people would just put their wages in to it?0
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Are we sure this won't actually be an advantage.
By using Halifax as your main bank, they would have lots more info to base a mortgage on. Hence could/should sell you a correct product.
No more 'liar loans', just honest lending.0 -
But that wouldn't really be an issue would it, as people would just put their wages in to it?
There are still some parts of the country where you can buy a small home for under, say, £60k. If you were earning £15k/year and had a £6k deposit, you'd want a mortgage of £54k, or just 3.6x salary.
Earning £15k you'd take home £997/month
OK, not really applicable to all, but some.
Apart from that, it can be a pain changing your bank account.
Back to the original thread
Yes, this was how it used to work. To get a loan from a bank etc you needed to really have an account there.
You'd also need to have an appointment with a bank manager, face to face, to go through your account and savings. My sister had to take her savings passbook with her in the late 70s when she/husband wanted a mortgage. Both established teachers they were allowed 2.5x one salary and 1x the second salary. Upon asking for the mortgage and going through their account and savings book, the manager said "yes" and kept the passbook money for the deposit they'd need.
Back in the late 80s when I wanted to buy a mobile home, first I found out which lenders were willing to make personal loans for mobile homes, then I put my savings into an account with them and saved for 6 months before I started looking round for one to buy.
It adds another level of complexity and cunning to the whole scenario.0 -
PasturesNew wrote: »If they earn enough.
There are still some parts of the country where you can buy a small home for under, say, £60k. If you were earning £15k/year and had a £6k deposit, you'd want a mortgage of £54k, or just 3.6x salary.
Earning £15k you'd take home £997/month
OK, not really applicable to all, but some.
Apart from that, it can be a pain changing your bank account.
Back to the original thread
Yes, this was how it used to work. To get a loan from a bank etc you needed to really have an account there.
You'd also need to have an appointment with a bank manager, face to face, to go through your account and savings. My sister had to take her savings passbook with her in the late 70s when she/husband wanted a mortgage. Both established teachers they were allowed 2.5x one salary and 1x the second salary. Upon asking for the mortgage and going through their account and savings book, the manager said "yes" and kept the passbook money for the deposit they'd need.
Back in the late 80s when I wanted to buy a mobile home, first I found out which lenders were willing to make personal loans for mobile homes, then I put my savings into an account with them and saved for 6 months before I started looking round for one to buy.
It adds another level of complexity and cunning to the whole scenario.
So really only people earning under 15k would it be a problem for, and those people are unlikely to be buying a house, except for as you say a few places where there are very cheap homes.
I think this is a good idea personally, it is not hard to change accounts now days, they do it all for you, and if you don't like the account you can have a standing order the day after pay day for your whole salary to go in to a different account.
It just stops people who lie and other idiots from getting mortgages!0 -
It certainly is very sensible.
BUT...won't it also exclude some self employed people, who may get £1000 one momth, £1500 the next, £500 the following month?
i wonder if there'll be a clause in the contract which states that, if you fail to pay in £1K a month you go onto the SVR, for that month.
Again, for sensible, honest people, it shouldn't be a problem. For those who like to lie about what they earn, well, they shouldn't be getting mortgages in the first place.0 -
meanmachine wrote: »i wonder if there'll be a clause in the contract which states that, if you fail to pay in £1K a month you go onto the SVR, for that month.
"You'd need the £1000 going into the savings account in the first instance before they will consider you as a mortgage customer" is what I think they're saying. Any mortgage issued would be irrespective of account activity, but account activity would determine their yes/no decision to grant you a mortgage.0 -
I also wonder what happens in terms of joint mortgages? I suppose the 2 people could have a standing order from their own current accounts of £500 each (or whatever proportions they pay). Then the sensible thing would be to pay bills from that account as well with anything left over. That is what I would do anyway.
I have got my mortgage offer from Halifax, I wonder if they will do this for us? Not that it will matter as I bank with Halifax anyway, but my mortgage is paid from a joint account and my wages go into my own account. I suppose we will just have to pay in the whole £1000 and then use left over for bills or transfer it back to our own separate accounts.
The cynic in me thinks this is less about sensible lending (which can only be a good thing) and more about getting money coming in to the Halifax in current accounts.0 -
I suppose a couple would have to individually or jointly hold an account at the same bank too. So jointly would they only have to pay in £1000?
Another "making things harder for singles" policy?
Or would they need to pay in £2000/month jointly?0 -
The cynic in me thinks this is less about sensible lending (which can only be a good thing) and more about getting money coming in to the Halifax in current accounts.
Yes, these days it's more about getting money in than giving it out.
Odd concept that: money has to come from somewhere... banks seem to have forgotten it since they could just pop out to the market and get what they needed.0 -
I suppose it may also be linked to keeping people in particular mortgages which means they could be fleeced at a later date as in order to switch mortgage you would also need to switch current account in order to get a good deal.If you always do what you have always done, you will always get what you always got!0
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