[Finance] The Mortgage Market 2022

[ConfusedGloryHunter]

Can always drop hints like "do you know how much we can make renting your room out?" Or the classic "I moved out and bought my own place at your age".

But seriously tho, best thing we did was to free up cash so our eldest could get on the ladder about 8 years ago. Just before the lockdown she sold that flat and bought a 3 bed semi, got married and had a son.

They'd be in the rental trap now if we hadn't. Strange thing is that her husbands family are more wealthy than us (he was an airline pilot FFS after years in the RAF) but wouldn't do a penny for their son.

I just don't get it. We'll do the same for no 2 when she's older.

How old is no 2 and is she single at the moment? Asking for friend...

 

[Herr Tubthumper]

https://www.bbc.co.uk/news/business-62525269

Depressing times.

 

[Herr Tubthumper]

I have never understood the “I did this so you can to”. Not sure how old you are but I am 43 and it was a shit load easier for me and my now wife to buy our first place in 2004 than it is now. These days in the same circumstances re income, deposit etc we had at 25 we would have no chance. Why anyone would choose to make their kids struggle is beyond me.

It was piss easy in the mid-90s. I met with my bank manager to arrange some life insurance and he asked if I was interested in any other products and mentioned a mortgage. I was late 20s and living in London and the idea hadn’t ever entered my head. He asked some questions, did some sums, did some checks, and I walked out of the meeting with an offer in principle certificate. I moved into a flat 6 months later. It could not have been any easier.

 

[Weststander]

It was piss easy in the mid-90s. I met with my bank manager to arrange some life insurance and he asked if I was interested in any other products and mentioned a mortgage. I was late 20s and living in London and the idea hadn’t ever entered my head. He asked some questions, did some sums, did some checks, and I walked out of the meeting with an offer in principle certificate. I moved into a flat 6 months later. It could not have been any easier.

It goes in regulatory/lending multiple waves. I was part of the the wave who found it easy to get a mortgage in the late 80's, just a 5% deposit and I think maximum multiples of 3.5x (some trainee professionals could get 5x).

Then a crash, and a clampdown on Wild West lending eg some of the self employed lying about their income in Self Cert mortgages.

 

[Paulie Gualtieri]

It goes in regulatory/lending multiple waves. I was part of the the wave who found it easy to get a mortgage in the late 80's, just a 5% deposit and I think maximum multiples of 3.5x (some trainee professionals could get 5x).

Then a crash, and a clampdown on Wild West lending eg some of the self employed lying about their income in Self Cert mortgages.

My first role in FS was at a Lehman bank UK sub prime lender.

Self cert was king and they used to classify low LTV as justification for lending being below 90%!

No additional holistic lending rationale was considered.

Internally the adverse products were known as the “Right to Lie” product guide

It was quite amazing the amount of Landscape Gardners earning £39,999 and IT consultants earning £79,999 we used to on board. You can probably guess our thresholds for further info being needed on the products


Sent from my iPhone using Tapatalk

 

[Weststander]

My first role in FS was at a Lehman bank UK sub prime lender.

Self cert was king and they used to classify low LTV as justification for lending being below 90%!

No additional holistic lending rationale was considered.

Internally the adverse products were known as the “Right to Lie” product guide

It was quite amazing the amount of Landscape Gardners earning £39,999 and IT consultants earning £79,999 we used to on board. You can probably guess our thresholds for further info being needed on the products


Sent from my iPhone using Tapatalk

Two imaginary sets of books - one for HMRC, one for lenders.

 

[Paulie Gualtieri]

Two imaginary sets of books - one for HMRC, one for lenders.

100%

We started asking the Computer Programmer applicants what language they coded in and after a silence would offer up 3-4 made up suggestions and the majority would pick one.


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[Worthingite]

Can always drop hints like "do you know how much we can make renting your room out?" Or the classic "I moved out and bought my own place at your age".

But seriously tho, best thing we did was to free up cash so our eldest could get on the ladder about 8 years ago. Just before the lockdown she sold that flat and bought a 3 bed semi, got married and had a son.

They'd be in the rental trap now if we hadn't. Strange thing is that her husbands family are more wealthy than us (he was an airline pilot FFS after years in the RAF) but wouldn't do a penny for their son.

I just don't get it. We'll do the same for no 2 when she's older.

You mean the rental trap that you happily enable your tenants to get into with a BTL?

 

[Worthingite]

Gareth is amazing - he helped us look for a mortgage a number of years ago, and although a change in circumstances meant that we couldn't proceed, he was so thorough. We'll be looking again in the new year and he'll be the first number I ring.

 

[The Antikythera Mechanism]

GG sorted a mortgage and recently a remortgage for my Son and Daughter-in-law, providing a faultless service. Can’t recommend him higher enough.

 

[B-right-on]

I have never understood the “I did this so you can to”. Not sure how old you are but I am 43 and it was a shit load easier for me and my now wife to buy our first place in 2004 than it is now. These days in the same circumstances re income, deposit etc we had at 25 we would have no chance. Why anyone would choose to make their kids struggle is beyond me.

Quite a bit older than you.

Just giving my opinion, thought that's what a forum is all about. You can agree or disagree. The alternative is for them to get into the 'rental trap'. A 3 bed semi is £1500 a month around here. How many people can afford that and save for a deposit?

Hence me and the Mrs drawing out some of the equity in our own house to get her onto the property ladder.

When we kick it, they'll get it anyway (after the Govt take whatever they do).

 

[B-right-on]

He's renting now. The roadblocks are my anxiety about 'retiring' and his inertia. Ironically he works in the legal side of....property sales.

It's not about getting him out of the house. It's about getting him into his own place at a time when his salary is about one tenth the price of an average house down here.

Ah ok HWT. It's obviously something that both of you need to be comfortable with and not cause undue stress.

It's horses for courses. As I said, we were more than happy to take the 'risk' where my son in laws parents weren't. Everyone is different and some are more risk averse than others.

 

[Shropshire Seagull]

Mortgage now all paid off for me.
But I still recall my first mortgage starting in late 1980's @ 16% and it was a 105% mortgage.
Yep, they gave me the full loan amount, about £60k IIRC and then an additional £3k to buy furniture, carpets, TV, bed, etc.
Then 5 years later, the place was worth £90k and along came the patter of tiny little feet.
Geez, we had it easy back in the day ....

 

[B-right-on]

You mean the rental trap that you happily enable your tenants to get into with a BTL?

Ooooh. Below the belt that. Yes I'm a nasty landlord. Oh. Ban, Shirley?

Apart from the fact that landlords are getting out of the rental market due to all the new legislation and it's not 'solved' the housing crises but caused a massive rental crises.

Do you know how many 3 bed semis are available for rent in Shoreham right now?

ZERO. None. Not at even £1700 per month.

Actually my BTL is our old house that we rent to friends who have no chance to ever get on the property ladder and we've never raised the rent in the 14 years they've been there. She literally begs us never to sell.

 

[SK1NT]

Gareth has just helped me get a mortgage and has been helping me for about 10 years. I cannot stress just what a decent, straight shooting guy he is.

I have said this many a time on here, but i was very dubious about using a guy online to handle the most sensitive information possible, bank statements, payslips etc etc however i am very happy to have taken that plunge. He makes this time consuming shitty process bearable and always has my best interest at heart. Would never go anywhere else.

I am looking forward to a beer together still mate.


p.s. i got a 5 year fixed. FWIW i think rates will go a lot higher so try and fix.

 

[Berty23]

Quite a bit older than you.

Just giving my opinion, thought that's what a forum is all about. You can agree or disagree. The alternative is for them to get into the 'rental trap'. A 3 bed semi is £1500 a month around here. How many people can afford that and save for a deposit?

Hence me and the Mrs drawing out some of the equity in our own house to get her onto the property ladder.

When we kick it, they'll get it anyway (after the Govt take whatever they do).

I was agreeing with you. Sorry if that didn’t come across. I was talking about people who refuse to help their kids because they managed to do it themselves “and this was a good life lesson”

Sorry for misunderstanding. I shall be helping mine as best I can.

 

[B-right-on]

I was agreeing with you. Sorry if that didn’t come across. I was talking about people who refuse to help their kids because they managed to do it themselves “and this was a good life lesson”

Sorry for misunderstanding. I shall be helping mine as best I can.

Lol. Sorry for misunderstanding you!. Agreed fully. There are life lessons and life lessons. Trying to get on the housing market now, without help, is likely to be a lesson in 'dont bother, it's not worth it'. IMO.

 

[mikeyjh]

Ooooh. Below the belt that. Yes I'm a nasty landlord. Oh. Ban, Shirley?

Apart from the fact that landlords are getting out of the rental market due to all the new legislation and it's not 'solved' the housing crises but caused a massive rental crises.

Do you know how many 3 bed semis are available for rent in Shoreham right now?

ZERO. None. Not at even £1700 per month.

Actually my BTL is our old house that we rent to friends who have no chance to ever get on the property ladder and we've never raised the rent in the 14 years they've been there. She literally begs us never to sell.

In fairness, I had the a similar reaction to Worthinglite, it struck me as odd that you would talk about the 'rental trap' having mentioned a BTL mortgage. FWIW, it's symptomatic of our relationship with housing that we refer to things like 'rental traps' and 'property ladders', 'homes' as surely the way we should be describing these things?

 

[Butch Willykins]

I've used Gareth's services numerous times over the past 8yrs (including right now)! There is literally no need to look elsewhere, he always delivers, is super quick & efficient and he's one of our own!

Highly recommended! UTA!

 

[HastingsSeagull94]

This is really helpful - can't seem to PM you? Do you have an email address I could get in touch with you on?