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5.5x mortgage at 95% LTV


With a crooked smile

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With a crooked smile

First time in a while I've seen 95 LTV at a mainstream lender although I don't look often so this might be more common than I think. 

 

Nationwide offers 5.5x salary mortgages to buyers with 5% deposit


https://www.thisismoney.co.uk/money/mortgageshome/article-10502575/Nationwide-offers-5-5x-salary-mortgages-buyers-5-deposit.html

Edited by With a crooked smile
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HousePriceMania

It's not the nationwide offering those mortgages, it's you

 

https://www.gov.uk/government/news/new-95-mortgage-scheme-launches#:~:text=A new government-backed mortgage scheme to help people with,today (19 April 2021).&text=The government will offer lenders,to the usual affordability checks.

A new government-backed mortgage scheme to help people with 5% deposits get on to the housing ladder is available to lenders from today (19 April 2021).

 

Nationwide should be shut down, bunch of crooks now.

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How a Helping Hand could work

A couple, who are eligible first time buyers, have a joint income of £50,000, a 5% deposit and no other costs impacting how much they can afford. With a Helping Hand, they may be able borrow up to £275,000. This is compared to the £225,000 they’d be able to borrow without one.

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HousePriceMania
1 hour ago, spygirl said:

How a Helping Hand could work

A couple, who are eligible first time buyers, have a joint income of £50,000, a 5% deposit and no other costs impacting how much they can afford. With a Helping Hand, they may be able borrow up to £275,000. This is compared to the £225,000 they’d be able to borrow without one.

We all know who's being "helped" here and it's not the buyers.

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8 minutes ago, HousePriceMania said:

We all know who's being "helped" here and it's not the buyers.

Indeed, but my post was more about what the reality is - a young couple, earning 50k joint, with *NO* other debt can  borrow up to *274k*, 50k more than previous.

Unless the young couple are ascetic monks who walk to work, I can bet a good ~15k of that income has already been spent - cars/travel/CCs.

The reality is that banks do a rough n ready 10k deduction off that 50k, making it 40k tops, making 220k max.

Lets say they buy the house, then Mrs is knocked up, so that income drops to sub 30k, making the LTE way over 8x.

They are stuck on the SVR after the fix. Fucked.

 

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With a crooked smile
8 minutes ago, spygirl said:

They are stuck on the SVR after the fix. Fucked.

I don't know where you get this view from. At the end of a fix with any mainstream lender I've used as long as you aren't changing the lender or asking for more borrowing you just fix on their latest deal. There is no reappraisal of your financial situation, certainly not that I've ever experienced. 

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HousePriceMania
17 minutes ago, spygirl said:

Indeed, but my post was more about what the reality is - a young couple, earning 50k joint, with *NO* other debt can  borrow up to *274k*, 50k more than previous.

Unless the young couple are ascetic monks who walk to work, I can bet a good ~15k of that income has already been spent - cars/travel/CCs.

The reality is that banks do a rough n ready 10k deduction off that 50k, making it 40k tops, making 220k max.

Lets say they buy the house, then Mrs is knocked up, so that income drops to sub 30k, making the LTE way over 8x.

They are stuck on the SVR after the fix. Fucked.

 

They;re only f**ked until Mr Bailey-out brings in -ve rates and pays them to borrow more....

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34 minutes ago, With a crooked smile said:

I don't know where you get this view from. At the end of a fix with any mainstream lender I've used as long as you aren't changing the lender or asking for more borrowing you just fix on their latest deal. There is no reappraisal of your financial situation, certainly not that I've ever experienced. 

MMR is carried out on each re-mortgage.

https://www.unbiased.co.uk/life/homes-property/what-happens-when-my-fixed-rate-mortgage-ends

If you choose to remortgage, you can either try to get a new deal with your current mortgage provider, or shop around to find a different mortgage provider offering an even better deal. A mortgage broker can be a great help in doing this. Your mortgage broker can search the whole market and recommend the best mortgage deals for you, based on your specific needs.

Your lender will want to know if your circumstances have changed, as this could affect your affordability assessment and credit score. Common changes that may affect your mortgage prospects include having children, taking on new debts, or becoming self-employed.

 

Again, 3/4 of couple have kids with ~5 years of buying a house.

 

 

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I read that there was only £1bn of monies available for this, so that is around 5,000 loans and also they won't lend on new builds.

With over 1% of interest rate rises priced in it doesn't seem to be a great time to be buying property, but an even stupider time to be buying heavily leveraged property.

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With a crooked smile
50 minutes ago, spygirl said:

MMR is carried out on each re-mortgage.

https://www.unbiased.co.uk/life/homes-property/what-happens-when-my-fixed-rate-mortgage-ends

If you choose to remortgage, you can either try to get a new deal with your current mortgage provider, or shop around to find a different mortgage provider offering an even better deal. A mortgage broker can be a great help in doing this. Your mortgage broker can search the whole market and recommend the best mortgage deals for you, based on your specific needs.

Your lender will want to know if your circumstances have changed, as this could affect your affordability assessment and credit score. Common changes that may affect your mortgage prospects include having children, taking on new debts, or becoming self-employed.

 

Again, 3/4 of couple have kids with ~5 years of buying a house.

 

 

Honestly it's not. I'm with 3 different lenders and have never been asked to go through MMR or provide access to bank accounts when staying with the same lender. Natwest (residential) Virgin Money (BTL) and Halifax (residential) don't do this. 

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I think Spy and With a Crooked Smile are talking at cross purposes.

Spy is talking about the end of the mortgage TERM ie 25 years. WaCS is talking about the FIXED rate period. You can repeatedly jump onto a new fix without MMR, as long as it falls within the 25 years TERM. ie 5x 5year fixes but no MMR.

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With a crooked smile
2 minutes ago, TMM said:

I think Spy and With a Crooked Smile are talking at cross purposes.

Spy is talking about the end of the mortgage TERM ie 25 years. WaCS is talking about the FIXED rate period. You can repeatedly jump onto a new fix without MMR, as long as it falls within the 25 years TERM. ie 5x 5year fixes but no MMR.

Thanks for clarification it's easy to speed read something and not get the nuance that you would from face to face. 

Yes at the end of a 20/25 year deal you would but unless it's interest only I don't see that being an issue for most. 

BTL io is based in rental income so after 25 years remortgaging shouldn't be an issue. Take our place in Brighton as an example £350ish mortgage rental income circa £1250/1300.

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58 minutes ago, TMM said:

I think Spy and With a Crooked Smile are talking at cross purposes.

Spy is talking about the end of the mortgage TERM ie 25 years. WaCS is talking about the FIXED rate period. You can repeatedly jump onto a new fix without MMR, as long as it falls within the 25 years TERM. ie 5x 5year fixes but no MMR.

No, Im talking about the end of the fix/deal.

Look a the NW deal -  offering larger mortgages to FTBs.

This is pitched to couples. I wont say young as FTBers are not anymore.

75% of couples buy a house then have start popping out kids, spend goes up, income goes down, stuck on SVR.

 

WACS is probably talking about their own circumstances, which will be different from the majotirry.

 

 

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Sugarlips
1 hour ago, HousePriceMania said:

It's not all bad news on the mortgage front...

 

 

This.

Guardian stating 6 more BoE rises before Xmas taking base rate to 2%.

This spring may be the last chance for the leveraged to bail

I find myself in need of family accom on the south coast and from what I can see (renting or buying) is a shitshow right now..

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HousePriceMania
21 minutes ago, Sugarlips said:

This.

Guardian stating 6 more BoE rises before Xmas taking base rate to 2%.

This spring may be the last chance for the leveraged to bail

I find myself in need of family accom on the south coast and from what I can see (renting or buying) is a shitshow right now..

It's like a fire in a dance hall....only the people who were already at the exit make it out alive.

Most people dont win with speculative bubbles, most lose out.

I just feel sorry for the young and naive who are pinning all their financial hopes on their houses going up from 20x the local wage to 40x.

 

 

 

Edited by HousePriceMania
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38 minutes ago, Sugarlips said:

This.

Guardian stating 6 more BoE rises before Xmas taking base rate to 2%.

This spring may be the last chance for the leveraged to bail

I find myself in need of family accom on the south coast and from what I can see (renting or buying) is a shitshow right now..

Ive been looking at Salisbury area, so not too far from Bmouth, was thinking of just buying a house to get rid of my savings.

But prices there have gone nuts in the last 18 months, but more so the last 6 months.

Do hope they raise interest rate rises ASAP to end the shitshow for good, so people like yourself can buy.

 

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4 hours ago, With a crooked smile said:

Honestly it's not. I'm with 3 different lenders and have never been asked to go through MMR or provide access to bank accounts when staying with the same lender. Natwest (residential) Virgin Money (BTL) and Halifax (residential) don't do this. 

Agreed if you stay with same lender they don't ask for any information about your finances. I renewed with Halifax in 2020, when my income had changed, and they didn't ask for any figures (there may have been some tick box somewhere agreeing to tell them about changes in circumstances but that's in any mortgage fine print anyway). Also did a re-fix with Nationwide for a friend last month and there were no questions asked just chose the fix online and it was done. 

This will differ if you borrow more or change provider.

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With a crooked smile
6 minutes ago, Siggy said:

Agreed if you stay with same lender they don't ask for any information about your finances. I renewed with Halifax in 2020, when my income had changed, and they didn't ask for any figures (there may have been some tick box somewhere agreeing to tell them about changes in circumstances but that's in any mortgage fine print anyway). Also did a re-fix with Nationwide for a friend last month and there were no questions asked just chose the fix online and it was done. 

This will differ if you borrow more or change provider.

100% agree that's always been my experience as well. 

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Wight Flight
3 hours ago, Sugarlips said:

This.

Guardian stating 6 more BoE rises before Xmas taking base rate to 2%.

This spring may be the last chance for the leveraged to bail

I find myself in need of family accom on the south coast and from what I can see (renting or buying) is a shitshow right now..

It's because all the landlords have gone and sold up!

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30 minutes ago, Wight Flight said:

It's because all the landlords have gone and sold up!

To other landlords, but in reality there is barely anything coming onto the market, what is looks like probates.

Im seeing almost all houses come on the market and get sold within 2 weeks, there is no way on earth its people moving houses buying such places ... and with the price of them being insane i doubt its FTBers.

just do a search of your area, and then click the under offer button on RM, and see for yourself.

Edited by Hancock
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Wight Flight
10 minutes ago, Hancock said:

To other landlords, but in reality there is barely anything coming onto the market, what is looks like probates.

Im seeing almost all houses come on the market and get sold within 2 weeks, there is no way on earth its people moving houses buying such places ... and with the price of them being insane i doubt its FTBers.

just do a search of your area, and then click the under offer button on RM, and see for yourself.

Maybe. We have 700 for sale and 1,400 sstc.

But I wonder how much of that is down to backlogs in conveyancing? I understand you won't even get a viewing unless you are a proceedable buyer.

And landlords aren't selling to each other. 85% of let properties have been sold and removed from the rental market - but it isn't the tenants buying them hence the crisis.

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Bobthebuilder
8 minutes ago, Hancock said:

Im seeing almost all houses come on the market and get sold within 2 weeks, there is no way on earth its people moving houses buying such places ... and with the price of them being insane i doubt its FTBers.

just do a search of your area, and then click the under offer button on RM, and see for yourself.

My search area is 10 to 20 miles away from your Salisbury area, not seeing places sell that quickly in North Dorset. The amount of places sat SSTC for at least a year is a huge percentage of listed properties, but not much sold going on. I see more reduced than go SSTC on my searches.

Quite amazing, the difference in just a few miles, massively overpriced mind you, and seeing what looks like probates more often recently.

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6 minutes ago, Bobthebuilder said:

My search area is 10 to 20 miles away from your Salisbury area, not seeing places sell that quickly in North Dorset. The amount of places sat SSTC for at least a year is a huge percentage of listed properties, but not much sold going on. I see more reduced than go SSTC on my searches.

Quite amazing, the difference in just a few miles, massively overpriced mind you, and seeing what looks like probates more often recently.

Havent you got London money to purchase, hence you're not looking in the poor people section .... which is merely about 12 times average salary!

https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^1165&minBedrooms=2&maxPrice=350000&radius=3.0&sortType=6&propertyTypes=bungalow%2Cdetached%2Cland%2Csemi-detached%2Cterraced&includeSSTC=false&mustHave=&dontShow=sharedOwnership&furnishTypes=&keywords=

I worked on a hotel conversion in Salisbury about half my lifetime ago i.e 23 years ... anyway too much knocking things down, and the entire back of the building collapsed.

Was of a similar age to this, thus i wouldnt touch that at half the price.

https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^1165&minBedrooms=2&maxPrice=350000&radius=3.0&sortType=6&propertyTypes=bungalow%2Cdetached%2Cland%2Csemi-detached%2Cterraced&includeSSTC=false&mustHave=&dontShow=sharedOwnership&furnishTypes=&keywords=

 

Edited by Hancock
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With a crooked smile
19 minutes ago, Wight Flight said:

Maybe. We have 700 for sale and 1,400 sstc.

Round here the Estate Agents leave properties as sstc for ages after completion. I can think of a property where I know the people who sold it, they've moved round the corner and builders are in converting it from  a BnB to a holiday let, still shows as sstc. 

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