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Who gives a 5 times salary mortgage?

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135

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  • missk_ensington
    missk_ensington Posts: 1,590 Forumite
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    mikey- that i utter rubbish about your credit rating already being joined- I lived with my partner for just over a year and he had £90,000 of unsecured debt. Bailiffs came every day, phone calls every 5 minutes, 20 letters a day.... I applied for a mortgage during this time and got accepted straight away as they said my credit score was impeccable.

    Now dumped the ex and believe he may have decalred bankruptcy, but he's obviously not changed address dtails cos I still get mail from creditors and it hasn't affected my credit rating whatsoever!
  • Tassotti
    Tassotti Posts: 1,492 Forumite
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    Despite the warnings, crash is not going to happen, so lenders have to readjust their criteria. Won't be long before you can borrow ten times your salary.

    People these days wan't too much. Roof over your head is most important, then buy your holidays, plasmas, en-suite bathrooms, loft extensions, etc.

    Back in the good old days, people struggled to buy a house. These times are returning. Not a bad thing in my opinion. Shows what money is worth.

    Put prices up!! Lenders give more!!!

    (biased opinion)

    Tass
  • meanmachine_2
    meanmachine_2 Posts: 2,624 Forumite
    First Anniversary Combo Breaker
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    real1314 wrote:
    After 12 years, based on wage increases of 3% a £25k salary becomes £35.6k

    If you were sepnding half your £25k take home pay (so about £9500pa mortage) at the start, it would be about 37% after 12 years.


    Phew, that's all right then.

    Meantime my gas has gone up 50%, my leccy by 40%, my petrol by 100%, my tax by 200000% (approx).

    WHich means that in around 3.5 years I'm repossessed.
  • Tassotti
    Tassotti Posts: 1,492 Forumite
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    Good to see you back MM

    Tass
  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
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    meanmachine wrote:
    Phew, that's all right then.

    Meantime my gas has gone up 50%, my leccy by 40%, my petrol by 100%, my tax by 200000% (approx).

    WHich means that in around 3.5 years I'm repossessed.


    :rotfl: :T
  • missk_ensington
    missk_ensington Posts: 1,590 Forumite
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    Something has to be done and increasing lending allowance is inevitable, house prices and salaries don't correlate. Most people I know only earn £12,000-20,0000 a year. Even at the top end of that scale 4x would only be £80,000 and you can't get anything for that!

    In China they have 100 year mortgages and the kids inherit the house and the mortgage. That's what will end up happening here
  • Tassotti
    Tassotti Posts: 1,492 Forumite
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    @ Mr Andrew Smith

    Surely if you keep discouraging people from borrowing money, you are out of a job?:confused:

    Maybe you are after retirement :rotfl:
  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
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    Err no,

    But what mileage is there in encouraging anything other than responsible lending or borrowing, to then have it become a compliance or regulatory complaint later down the line?

    Only the worst kind of fool would suggest that someone overstretch themselves.
  • Tassotti
    Tassotti Posts: 1,492 Forumite
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    Is any lending responsible?

    Is it responsible for catalogues to 'lend' money on a leather jacket, which costs £90, but will end up costing the buyer £340?

    In a perfect world, we would all have money to buy what we like, but , no, we need to borrow.

    If people don't make the most of their opportunities (overstretch), then they will get nowhere in life.
  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
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    Tassotti wrote:
    Is any lending responsible?

    Is it responsible for catalogues to 'lend' money on a leather jacket, which costs £90, but will end up costing the buyer £340?

    In a perfect world, we would all have money to buy what we like, but , no, we need to borrow.

    If people don't make the most of their opportunities (overstretch), then they will get nowhere in life.


    Ah yes but what you forget is that if someone like myself is seen to suggest 'overstretching' and advises the borrower to do it, when they get reposessed or fall into arrears at a later stage it would be me that the complaint is upheld against not the lender.
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