Sub-prime mortgages.

[Uncle Spielberg]

im glad you said that as thats what ive been thinking (hoping). if i pay all the bills, have good equity and dont ask for too much on a remortgage, this isnt going to be too much bother is it?

Lenders will be bending over backwards to retain their borrowers and the borrowing question, 5 x income is about the max, 5 x single or 4.75 x joint and 40% of net income is a good guide, depends on whether you have dependants as well. Need to consider the mortgage on initital rate and also what the payment would be on the standard variable rate

 

[The Clown of Pevensey Bay]

Is this such a wise move?

You will have fees to sell it, fees to re-buy when you are ready and rent to pay in the interim. I would sit tight if you can.

After this whole horrible affair there will be another waiting in the wings - its called life.

I should have said: I don't live in the house (in Carlisle) that I own. I used to, but then my job changed, I moved to London and let out the place up north. The mortgage has just gone up so that plus agents' fees etc is setting me back about £100 a month net.

So I'll actually be BETTER off in the short term, plus with a decent amount of cash in the bank.

 

[Uncle C]

I should have said: I don't live in the house (in Carlisle) that I own. I used to, but then my job changed, I moved to London and let out the place up north. The mortgage has just gone up so that plus agents' fees etc is setting me back about £100 a month net.

So I'll actually be BETTER off in the short term, plus with a decent amount of cash in the bank.

Dont forget to spread your money around in £35,000 bits.

 

[The Clown of Pevensey Bay]

Dont forget to spread your money around in £35,000 bits.

I won't be THAT much better off!

 

[Leekbrookgull]

Plus,on your way back 'up north' don't forget to drop off at Leek ! Brown envelope full or used notes would come in handy.

 

[timco]

Sub prime does not only mean low credit score, I have a high credit score, just got a loan with no problem and can get any credit card I like but cannot get a "prime" loan on the house I live in.

1. Its an ex Council House
2. Its not made of bricks or concrete (This makes it non-standard construction)

This also causes problems with buildings and contents insurence and your standard insurers.

Your "prime" lenders tend to only like nice clean unproblematic loans (ask some of the prime, prime lenders (Prime, prime lenders are lenders that only want the best of the best risks), Egg, ING etc if you say your house is not built of Brick or Stone with a tiled roof you are out the door before you even give them your name!)

Therefore I have a product called "near prime" its still "sub prime" but not far off the nominal rate (It costs me about £30 more a month than the same loan would have done from a "prime" lender. But after much trying no "prime" lender would lend on this house.

So please do not associate "sub prime" with only those with financial problems it affects those who have "non standard build" properties too.

It does mean though that I am linked to the LIBOR which, if it does not come down a little before the end of the year, will cost me an extra £100 or so per month when my fixed deal comes to an end. (This assumes not paid off the mortgage from the proceeds of my mums will when it is finally settled!)

 

[Uncle Spielberg]

I can sort this out for you PM me.

 

[Beach Hut]

I can sort this out for you PM me.

Touting for business again....................

 

[Ernest]

Touting for business again....................

I saw you in the bogs at half time you BEAST

 

[Beach Hut]

I saw you in the bogs at half time you BEAST

Cottaging again were we, very dangerous sport to do at football matches but glad you enjoyed it.

 

[Lord Bracknell]

Lenders will be bending over backwards to retain their borrowers and the borrowing question, 5 x income is about the max, 5 x single or 4.75 x joint and 40% of net income is a good guide, depends on whether you have dependants as well. Need to consider the mortgage on initital rate and also what the payment would be on the standard variable rate

Interesting figures, Gareth.

When I took my first mortgage out, the guidelines were a maximum of 3 x main earner's income plus 1 x second earner's income (which is 2 x joint income, if both are earning the same). And mortgages / houses were affordable.

Mind you ... there was tax relief on the whole amount of the mortgage and interest rates were around 10 per cent. So the comparisons are complicated.

 

[Uncle Spielberg]

Touting for business again....................

Not touting, offering my help.