Mortgages look like they are getting more difficult to get.

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Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
62,708
The Fatherland
Mr Beach Hut. Surely the preferable approach is to have housing at an affordable price. This would then leave money to invest in an pension. This seems a more sensible approach than buying property and hoping the price goes up to aid later life along with all the associated issues house inflation causes.
 




Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
62,708
The Fatherland
Mortgages are getting more difficult to get it is very true. the lenders are running scared and not just the sub prime market. The High Street lenders are much stricter in the credit scoring systems whereby 4 out of 10 mortgages are declined at this initial stage. They are turning away people who they would have lent to 6 months ago.

Also the loan to value is decreasing at an alarming rate. All the 125% mortgage products have gone, there are a handfull of 100% mortgages now as most have been withdrawn and even 95% is getting harder. I also can see the higher lending charge kicking in at under 90% now as it used to do in the past. Lenders invariably do not charge this at loans to 90% or some 95% but I expect this to be reviewed and this fee can add thousands to the mortgage.

Lenders rates are going up even though the Bank rate is going down. Lenders have altered their tracker rates , ie 6 months ago it may have been 0.39% below bank base rate, now it could be 0.4% above bank base rate , therefore even with a 0.5% fall in bank base rates you are paying more. Fixed rates are not falling as its costing the lenders a lot on the markets to get the money.

Lenders are worried about the housing market and which way it will go and the credit squeeze and arrears and repossessions. People with clean profiles are finding it much tougher to get money , anyone with a bad credit file may find it impossible.

I am always available for advice or rates. PM me if you want.

This goes against the information I am getting. I've been advised that long term fixed rates for people with good credit history are becoming better. The main reason is that banks want good people to sign up for long term to steady the banks finances.
 


Uncle Spielberg

Well-known member
Jul 6, 2003
43,097
Lancing
Long term 10 years, yes they are lower but the problem is they have early redemption penalties for the 10 years often up to 5% of the mortgage amount. Until lenders address this issue of penalties during the fixed term Darling's dream of everyone having a 25 year fixed rate will remain that, a dream.
 


dougdeep

New member
May 9, 2004
37,732
SUNNY SEAFORD
Sorry................thought I was replying to the organ-grinder................not the monkey.

How original, sorry if I was blunt but you don't seem very smart.
 


Are you saying then, that it was more affordable in the seventies than now.............I find this odd, as we have more disposable income now, than in the seventies, so presumably your argument means that LESS people are buying their homes now than in the seventies.
I have no statistical info on this, but my memory of the seventies, was that less people were buying their houses then, than they are now.Perhaps you have access to the statistics on home ownership, then, and now....?
It would make interesting reading.

As has already been pointed out, houses were MUCH more affordable in the seventies, because they were cheaper.

And part of the reason for them being cheaper was that demand for housing was adequately met by a mixture of home ownership and rented housing.

The Thatcher government made a HUGE difference to this, by its decision to sell off most of the public housing stock at massively discounted prices. This delivered short term gains to previous council tenants, but fuelled house price inflation once a significant number of former council house tenants started to sell and rebuy. The market simply gobbled up their spare funds and house prices started to rocket, way above the level of general inflation.

The result - an end to "affordability", at least as it was understood in the seventies.

One thing that simply makes no sense whatsoever is that house price inflation has now been rebranded as "a good thing", in a way that would never be applied to price inflation in any other sector of the economy.
 




cjd

Well-known member
Jun 22, 2006
6,311
La Rochelle
How original, sorry if I was blunt but you don't seem very smart.

Yes...actually I did think you were blunt.........rude too.............and if you don,t me saying so.............fairly ignorant in your judgement of me....

Thankyou....that is all.
 


cjd

Well-known member
Jun 22, 2006
6,311
La Rochelle
As has already been pointed out, houses were MUCH more affordable in the seventies, because they were cheaper.

And part of the reason for them being cheaper was that demand for housing was adequately met by a mixture of home ownership and rented housing.

The Thatcher government made a HUGE difference to this, by its decision to sell off most of the public housing stock at massively discounted prices. This delivered short term gains to previous council tenants, but fuelled house price inflation once a significant number of former council house tenants started to sell and rebuy. The market simply gobbled up their spare funds and house prices started to rocket, way above the level of general inflation.

The result - an end to "affordability", at least as it was understood in the seventies.

One thing that simply makes no sense whatsoever is that house price inflation has now been rebranded as "a good thing", in a way that would never be applied to price inflation in any other sector of the economy.


Fair enough, but I can only use my own personal experience of buying my first house in 1974. I remember my salary being £85 a month and the mortgage was £78 a month....(my wife,s salary paid for the food etc). That house is probably worth about £200k today, so with a mortgage of say 90% @ 5.45% (Abbey) would cost roughly £900 per month...............a figure surely within range of most peoples monthly salary...?
Don,t wish to comment on the political decisions.........well aware which wing you side with...LOL..!
I totally agree that house price inflation (over and above the general rate of inflation) is odd, that it,s considered a "good thing".Apart from the feel-good factor it gives home owners, it seems to have an "inflated" ego trip all of its own.
 


Chicken Runner61

We stand where we want!
May 20, 2007
4,609
Another one. There used to be:

Halifax Building Society
Birmingham Midshires Building Society
Bank of Scotland.

Now there is only HBOS.

More choices my great arse.

I hope Birmingham Midshires still exist because if not its some scam!

They still have my money and are still sending me statements!!!
 




Uncle Spielberg

Well-known member
Jul 6, 2003
43,097
Lancing
Birmingham Midshires do still exist but are known as BM Solutions now. They are part of the HBOS group, headed by the Halifax Plc which includes Intelligent Finance, The Mortagge Business, Bank of Scotland and BM Solutions.
 


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