Halifax turns clock back to 60s

neverdespairgirl

LillyJ wrote: »

I have got my mortgage offer from Halifax, I wonder if they will do this for us?

Usually this type of change is on a "from now on" basis.

Paul_N_4

LillyJ wrote: »

It just stops people who lie and other idiots from getting mortgages!

And what proportion of home buyers over recent years fall into this category? (liar loans, 100%+ mortgages, etc).

Whatever the purpose of this move by Halifax, its certainly a long way from the days when you could walk into a bank, say "I want a house", and them say "sure, here's a 100% mortgage".

[Deleted User]

Should people who earn less than a grand a month really be considering a mortgage as a viable option anyway?

LillyJ

ringo_24601 wrote: »

Should people who earn less than a grand a month really be considering a mortgage as a viable option anyway?

Precisely. On less than 15k a year it would be a strange option, unless the person had come in to a large sum of money and had a very big deposit, especially people buying alone rather than as a couple.

boinging_2

LillyJ wrote: »

But that wouldn't really be an issue would it, as people would just put their wages in to it?

Would be a pain in the rear to change bank accounts though (I believe more people change husbands / wives than bank accounts).

This is quite a significant move and one which again will add to the downward pricing trends.

LillyJ

boinging wrote: »

Would be a pain in the rear to change bank accounts though (I believe more people change husbands / wives than bank accounts).

This is quite a significant move and one which again will add to the downward pricing trends.

It is a significant move but it is funny how people think changing bank accounts is difficult! They do everything for you including changing all your DDs.
It would also not be hard to just change your wages to go into the Halifax one, and then have a standing order taking them back to your original account the next day.
In the scheme of buying a house it is a pretty minor thing, but some people don't see it that way for some reason!

PasturesNew

Why shouldn't people on lower pay consider a house? If the multiple's OK then why not?

For somebody with this income renting can cost the same. And you have to keep moving. You can't move all your life. It gets harder the older you get.

I randomly picked Norwich and went to Rightmove. I have no knowledge of the area whatsoever.

2-bed flat. £58k: http://www.rightmove.co.uk/viewdetails-10200012.rsp?pa_n=1&tr_t=buy

Borrowing £52k, a monthly repayment mortgage at 6% over 25 years is just £338/month (or £370/month over 20 years)

Or you can rent the cheapest 1-bed flat for £375/month
http://www.rightmove.co.uk/viewdetails-21008879.rsp?pa_n=4&tr_t=rent

I am just saying that in some areas it is possible and not ridiculous to consider.

poppysarah

It is so strange how over the last few years we've strayed away from the traditional lending methods.

Is there anything wrong with the company that's going to lend you a huge sum of money and trust you to pay it back over the next 25 years knowing what you earn and how much you can save?

If banks and BS had stuck to this sensible lending regime we wouldn't be in the utter cack we are now.

Same should apply for credit cards too - why should you be able to run up debt over 15 credit cards?

meanmachine_2

Yeah funny that - now banks have to account for their own loans, and can't just pass the debt onto some other sap (pension fund), they're getting all fussy over who they lend to.

As others have said, this ain't going to change soon - unless someone like Pickles or Edinvestor has a 1trillion dollar securitization market in their back pocket...

noh

Despite what it says in the newspaper article there is no requirement to pay £1000 pm into the Halifax HICA.
The £1000 pm deposit is only required to earn the 5.12% interest rate on balances under £2500. Paying in less than £1000 for more than two months in a row results in an interet rate of 0.1%.
http://www.halifax.co.uk/bankaccounts/highinterestcurrentaccount.asp

Nigel