London House prices down 4.4% year on year....BBC no less.

[RJT1979]

I have no crazy spending, little outgoings. Maybe you dont get more than 3x earnings when you use help to buy as well?

[A_P]

1 minute ago, RJT1979 said:

I have no crazy spending, little outgoings. Maybe you dont get more than 3x earnings when you use help to buy as well?

I didn't think you would considering you're mortgage free. It could be just something with that one lender and your profile which they aren't trying to attract so aren't willing to lend more than 3. I would just try another provider (someone like Halifax) and see what their computer says. Or even have a conversation with a whole market fee free broker and they will give you a better idea of your situation.  You don't have to go with them at the end of the day.

I believe it might be x4.5 for HTB but worth checking the fine print (i would do this anyway as the rules around HTB are quite convoluted). Considering what the whole point is for HTB it would be pretty silly to limit it to such an LTI. This graph shows that over 4.5+ LTI isn't particularly rare

[Democorruptcy]

5 hours ago, RJT1979 said:

anecdotal: I have a house worth 270k no mortgage. looking to upgrade to another new build for 440k.

Was planning on using 270k as a deposit and using help to buy. Problem is you have to get a mortgage for 25% minimum which is 110k.

On my wage of 28k i was offered 110k mortgage but had another call with TSB last week and they will now offer me 90k max. Computer says no.

I have a GF that earns 60k but not interested in getting her 'involved'. So basically stuck in a 3 up 2 down wanting to move to a detached house 1 hour from London.

Anyone else any anecdotes of the banks turning the taps off? Wish we could have a 50% crash tomorrow and get it over and done with.

Why is it a 110k mortgage? Did they offer you 90k because they think that's all you need? 440k house minus 20% equity loan of 88k = 352k, minus 270k deposit leaves 82k

 

[RJT1979]

4 minutes ago, Democorruptcy said:

Why is it a 110k mortgage? Did they offer you 90k because they think that's all you need? 440k house minus 20% equity loan of 88k = 352k, minus 270k deposit leaves 82k

 

min mortgage is 25pc to get help to buy = 110k

[Democorruptcy]

6 hours ago, RJT1979 said:

min mortgage is 25pc to get help to buy = 110k

Sorry I forgot that bit.

Your deposit is 61% of the price and the maximum allowed is 65%. It seems a bit strange that the minimum equity loan of 10% and minimum mortgage of 25% are set in stone and not flexible to just total 35% or more together. You could do 60/20/20. 

The problem is builders whacking the prices up and walking off with millions in bonuses. At 360k you could have done 60/20/20 then overpaid from your 54k spare equity.

[sancho panza]

On 20/07/2019 at 09:11, Castlevania said:

@sancho panzaAre you still short Berkeley? I notice that Tony Pidgley sold another tranche of his shares yesterday. He’s generally one who’s called the London property market well for decades. I get the feeling he knows something!

Currently back short again recently at  £38.50.Housebuilders have been my best trades of the last year.I've been in and out of BDev four times plus now.Main losses have been trying to call the turn in the US which has been a lesson in watiing for the tide to start going out before shorting.

Thanks for the heads up ref Pidgeley.He's one shrewd cookie,rides it up,sells near the top.