Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

IGNORED

YourMove Estate Agency goes from 404 shops to 280.Redundancies loom.


sancho panza

Recommended Posts

7 minutes ago, spygirl said:

SOme mortgage terms are 40.

Im guessing these will be pretty rare.

The problem with EAs and booster i they go Oh, Fuckknowswhere Building Society is offering 8x mortgage for 40 years.

Bollocks.

TinyBS, doing a stupid loss leader to get its name in papers.

Look at what the big banks are lending. These make up up 80%+ of the market.

Ive started using HSBC are my comparison.

You cannot get a mortgage term beyond retirement age.

 

 

Yes but you're not 25 years old.....so a 35 year term is nothing to the young bucks.

35 year terms are pretty standard with the young now, go read reddit.

As stated elsewhere around here banks now consider retirement age of 67-70 reasonable....

When I did my MIP with FD 4.75 on a single income and they asked me my planned retirement age......

Bottom line all they care about is can you afford the mortage currently inline with the pointless MMR rules.

Link to comment
Share on other sites

12 minutes ago, A_P said:

 

Yes but you're not 25 years old.....so a 35 year term is nothing to the young bucks.

35 year terms are pretty standard with the young now, go read reddit.

As stated elsewhere around here banks now consider retirement age of 67-70 reasonable....

When I did my MIP with FD 4.75 on a single income and they asked me my planned retirement age......

Bottom line all they care about is can you afford the mortage currently inline with the pointless MMR rules.

MMR are anything but pointless.

Massive structural change to the UK mortgage market.

How mnay 25yo have a big enouh deposit or earnigns history or desitre to get a mortgage?

FTB age is well int othe 30s.

Again, stop looking at exceptional cases. Look at the average FTB.

 

 

Link to comment
Share on other sites

39 minutes ago, spygirl said:

MMR are anything but pointless.

Massive structural change to the UK mortgage market.

How mnay 25yo have a big enouh deposit or earnigns history or desitre to get a mortgage?

FTB age is well int othe 30s.

Again, stop looking at exceptional cases. Look at the average FTB.

 

 

imo MMR just seems to me a box ticking exercise and a nod to people like yourself in the vain attempt to appear to be doing the right thing. Yet the from what I've seen all it seems to have done is push people to extend the terms to bring down the "affordibitliy". We can agree to disagree though.

and how am I looking at exceptional cases? https://www.reddit.com/r/UKPersonalFinance/search?q=35 year mortgage&restrict_sr=1&sort=relevance

You're the one that seems to reject a 35 year term mortgage based on your own age, now that is exceptional. A 25/30 year old taking out a mortgage to state retirement age isn't imo, although not particulary clever.

5% with HTB or 10% for non HTB from a mainstream lender. Hardly a life shattering amount even for the SE crapbox. 2 Bed Semi new build near where I used to live was £15k downpayment. I know a few people who did this on 30+ terms and all they cared about was that was the similar amount as their rent so they thought they were better off. Not exceptional cases, just the mindset of the current generation.

What earnings history? Halifax only need a contract in place let alone one months payslip. HSBC/FD need one months payslip. I had actual conversations with these institutions as we were looking to buy while relocating. I can only go by what I see, hear and read. Hardly exceptional.

Link to comment
Share on other sites

2 minutes ago, A_P said:

imo MMR just seems to me a box ticking exercise and a nod to people like yourself in the vain attempt to appear to be doing the right thing. Yet the from what I've seen all it seems to have done is push people to extend the terms to bring down the "affordibitliy". We can agree to disagree though.

and how am I looking at exceptional cases? https://www.reddit.com/r/UKPersonalFinance/search?q=35 year mortgage&restrict_sr=1&sort=relevance

You're the one that seems to reject a 35 year term mortgage based on your own age, now that is exceptional. A 25/30 year old taking out a mortgage to state retirement age isn't imo, although not particulary clever.

5% with HTB or 10% for non HTB from a mainstream lender. Hardly a life shattering amount even for the SE crapbox. 2 Bed Semi new build near where I used to live was £15k downpayment. I know a few people who did this on 30+ terms and all they cared about was that was the similar amount as their rent so they thought they were better off. Not exceptional cases, just the mindset of the current generation.

What earnings history? Halifax only need a contract in place let alone one months payslip. HSBC/FD need one months payslip. I had actual conversations with these institutions as we were looking to buy while relocating. I can only go by what I see, hear and read. Hardly exceptional.

HSBC want 12 months payslips and credit records.

If there are 2 people on the mortgage, theyll want 12 months of their statements to.

I know. I have a recent mortgage with HSBC.

They want all spend - bills credit etc.

 

 

 

https://www.hsbc.co.uk/mortgages/guidance/application-documents/#applications

Link to comment
Share on other sites

2 minutes ago, spygirl said:

HSBC want 12 months payslips and credit records.

If there are 2 people on the mortgage, theyll want 12 months of their statements to.

I know. I have a recent mortgage with HSBC.

They want all spend - bills credit etc.

 

 

 

https://www.hsbc.co.uk/mortgages/guidance/application-documents/#applications

Not if you bank with them....only one month. I told you I went through a MIP with them :D

You're ignoring everything else

Additionally the spend and bills falls under affordbility.....which goes back to the mortgage term. This is one of the reasons people are extending the term. Although from what I understand people are taking out longer terms even though they don't need to push down the affordbility to give them a cushion and plan to overpay.

Link to comment
Share on other sites

7 minutes ago, A_P said:

Not if you bank with them....only one month. I told you I went through a MIP with them :D

You're ignoring everything else

Additionally the spend and bills falls under affordbility.....which goes back to the mortgage term. This is one of the reasons people are extending the term. Although from what I understand people are taking out longer terms even though they don't need to push down the affordbility to give them a cushion and plan to overpay.

I do bank with them,

They wanted 12 months of my partners.

And they wanted bills too. And council tax.

This was for a LTE of ~1.

What banks say when offering a mortgage is a lot different when you actually go thru the process.

 

 

Link to comment
Share on other sites

44 minutes ago, spygirl said:

I do bank with them,

They wanted 12 months of my partners.

And they wanted bills too. And council tax.

This was for a LTE of ~1.

What banks say when offering a mortgage is a lot different when you actually go thru the process.

 

 

You're now conflating things and have drifted way off the intial point. If one doens't have a financial relationship with an insitution I would expect to have to upload/proove more details. But even from your own link and confirms what I have been saying:

image.thumb.png.91250fcb3ee01793479c95879d6d80e3.png

56 minutes ago, spygirl said:

https://www.mumsnet.com/Talk/legal_money_matters/2960536-hsbc-mortgage-advice

Talleiys with what I said.

Keen on getting you thru the door. Then the checking starts.

Ive no problem with this - HSBC do have lending capacity, psot FLS.

A lot of other banks dont.

The mortgage process took ~2 months.

 

What does? Some random mum asking what proof she will need? It's on the link you posted :D

Again has nothing to do with what I am saying. Sigh.

Link to comment
Share on other sites

  • 2 months later...
On 08/05/2019 at 09:58, spygirl said:

SOme mortgage terms are 40.

Im guessing these will be pretty rare.

The problem with EAs and booster i they go Oh, Fuckknowswhere Building Society is offering 8x mortgage for 40 years.

Bollocks.

TinyBS, doing a stupid loss leader to get its name in papers.

Look at what the big banks are lending. These make up up 80%+ of the market.

Ive started using HSBC are my comparison.

You cannot get a mortgage term beyond retirement age.

 

 

No

https://www.mortgagestrategy.co.uk/mortgages-with-40-year-term-rising-in-popularity/

Quote

Mortgages with the option of a 40-year term is rising in popularity, according to data collected by Moneyfacts.

The research shows that the number of products with a 40-year term option increased from 1,217 in June 2014, to 2,744 in June 2019.

This represents an increase from 41.54 per cent to 54.98 per cent of the market.

Meanwhile, the number of 25-year term and 30-year term mortgages both declined over the same time frame, falling from 196 to 161, and 392 to 165, respectively.

 

Link to comment
Share on other sites

The lower the interest rate the more a longer term makes sense.

[Or, rather, with a high interest rate it makes sense to have as short a term as possible.  As rates tend to zero the impact of the rate is reduced and the more you can think of the loan as just repayment of principal spread over n years]

As interest rates go up the terms will revert back to a 25 year norm.

Link to comment
Share on other sites

Democorruptcy
20 hours ago, A_P said:

From the FCA Bulletin

image.png.3c29123f61f9990957082b1ddb00bdc4.png

image.png.ebc3f0db7a835638c6544177a03284dc.png

From the BOE Financial Stability Report

image.png.5e3b5865301108c776c5f573ab551335.png

 

The Mortgage Market Review (MMR) came into force in April 2014. At the last minute banks successfully lobbied to have the 25 year maximum term taken out. The MMR is toothless, it means banks can extend mortgage terms to reduce monthly payments until the computer says buyers can afford. The result being longer mortgage terms and  years of extra mortgage interest for banks. If rates ever start rising it's going to suck pay rises into mortgage payments and Joint Income Mortgage Just About Managing (JIMJAMs) will be struggling for longer and longer.

 

 

Link to comment
Share on other sites

6 hours ago, Democorruptcy said:

The Mortgage Market Review (MMR) came into force in April 2014. At the last minute banks successfully lobbied to have the 25 year maximum term taken out. The MMR is toothless, it means banks can extend mortgage terms to reduce monthly payments until the computer says buyers can afford. The result being longer mortgage terms and  years of extra mortgage interest for banks. If rates ever start rising it's going to suck pay rises into mortgage payments and Joint Income Mortgage Just About Managing (JIMJAMs) will be struggling for longer and longer.

 

 

Nope.

MMR is evolving regulation. Wait n see.

Before MMR the UKs mortgage regulation ....... nothing.

No rules, no guidelines. Banks were assumed theyd run themselves in an orderly manner.

Even the US had the FICO rules, which is why sub-prime exists i.e. mortgages that do not get bought by the one of theMACs.

MMR rolled out. Banks lobbied to dick around with limits. BoE/PRA let them. However,, as more mortgages are taken out that will not end til way after retirement age, there will be review and the PRA will outlaw them. Or at least insist mortgages are finished before retirement.

 

Link to comment
Share on other sites

6 hours ago, Democorruptcy said:

The Mortgage Market Review (MMR) came into force in April 2014. At the last minute banks successfully lobbied to have the 25 year maximum term taken out. The MMR is toothless, it means banks can extend mortgage terms to reduce monthly payments until the computer says buyers can afford. The result being longer mortgage terms and  years of extra mortgage interest for banks. If rates ever start rising it's going to suck pay rises into mortgage payments and Joint Income Mortgage Just About Managing (JIMJAMs) will be struggling for longer and longer.

 

 

Nope.

https://www.ft.com/content/b05416b6-4ca1-11e9-8b7f-d49067e0f50d

Taking the example of a £200,000 repayment mortgage at a rate of 2.5 per cent over 25 years, monthly repayments would be just over £897, and total interest payable would be £69,169 over the term.

“However, the same mortgage taken over a 40-year term would reduce the monthly repayments to £659.56, but increase the total interest paid to £116,588, resulting in an additional £47,419 in interest,” Mr Cook said.

One you go ver 25 years, what you barely win on reductions. That extra 145 years on the treadmill takes 100/m of the repayments.

MMR is based on mortgage payments not taking ~30% of after tax n expense income.

 

 

Link to comment
Share on other sites

23 minutes ago, spygirl said:

Nope.

https://www.ft.com/content/b05416b6-4ca1-11e9-8b7f-d49067e0f50d

Taking the example of a £200,000 repayment mortgage at a rate of 2.5 per cent over 25 years, monthly repayments would be just over £897, and total interest payable would be £69,169 over the term.

“However, the same mortgage taken over a 40-year term would reduce the monthly repayments to £659.56, but increase the total interest paid to £116,588, resulting in an additional £47,419 in interest,” Mr Cook said.

One you go ver 25 years, what you barely win on reductions. That extra 145 years on the treadmill takes 100/m of the repayments.

MMR is based on mortgage payments not taking ~30% of after tax n expense income.

 

 

II do find it quite funny that you're unable to process how the market has and continues to shift.  

The reduction of £140 per month is the very difference between passing the tests or not, plus the banks get the added bonus of additional interest. 

Then consider the below, longer terms allow higher LTI's

]image.png.6eff4ed2f0665bea47d790df7a03e48c.png

The affordability test and the LTI flow limit complement each other in protecting households’ ability to service their debt. The affordability test effectively sets an LTI cap for each borrower that depends primarily on the term of the mortgage, or ‘tenor’, and the borrower’s spending commitments. The relationship between the effective LTI cap and the mortgage term is illustrated in Chart A.14. The swathe reflects variations in the effective cap, depending on the borrower’s spending commitments and the precise stressed interest rate used by lenders to assess affordability

Link to comment
Share on other sites

Democorruptcy
13 hours ago, spygirl said:

Nope.

MMR is evolving regulation. Wait n see.

Before MMR the UKs mortgage regulation ....... nothing.

No rules, no guidelines. Banks were assumed theyd run themselves in an orderly manner.

Even the US had the FICO rules, which is why sub-prime exists i.e. mortgages that do not get bought by the one of theMACs.

MMR rolled out. Banks lobbied to dick around with limits. BoE/PRA let them. However,, as more mortgages are taken out that will not end til way after retirement age, there will be review and the PRA will outlaw them. Or at least insist mortgages are finished before retirement.

 

Yep.

It might be better than nothing but crap in it's present form and needs changing.

Link to comment
Share on other sites

Democorruptcy
13 hours ago, spygirl said:

Nope.

https://www.ft.com/content/b05416b6-4ca1-11e9-8b7f-d49067e0f50d

Taking the example of a £200,000 repayment mortgage at a rate of 2.5 per cent over 25 years, monthly repayments would be just over £897, and total interest payable would be £69,169 over the term.

“However, the same mortgage taken over a 40-year term would reduce the monthly repayments to £659.56, but increase the total interest paid to £116,588, resulting in an additional £47,419 in interest,” Mr Cook said.

One you go ver 25 years, what you barely win on reductions. That extra 145 years on the treadmill takes 100/m of the repayments.

MMR is based on mortgage payments not taking ~30% of after tax n expense income.

 

 

Yep.

£897 - (£659 + £100) = £138 a month cheaper and the difference between being able to secure a mortgage or not. With the banks making £10's of £1,000's more in mortgage interest over a longer term.

 

 

 

Link to comment
Share on other sites

2 minutes ago, Democorruptcy said:

Yep.

£897 - (£659 + £100) = £138 a month cheaper and the difference between being able to secure a mortgage or not. With the banks making £10's of £1,000's more in mortgage interest over a longer term.

 

 

 

47,000 more.

 

Link to comment
Share on other sites

Democorruptcy
18 hours ago, A_P said:

II do find it quite funny that you're unable to process how the market has and continues to shift.  

The reduction of £140 per month is the very difference between passing the tests or not, plus the banks get the added bonus of additional interest.

It's an easy enough mistake for spy to make, spelling Yep as N O P E.

It's just slightly confusing using it to reply as if someone is wrong about something but then posting stuff that backs the other person's point of view.

Link to comment
Share on other sites

20 hours ago, spygirl said:

Nope.

https://www.ft.com/content/b05416b6-4ca1-11e9-8b7f-d49067e0f50d

Taking the example of a £200,000 repayment mortgage at a rate of 2.5 per cent over 25 years, monthly repayments would be just over £897, and total interest payable would be £69,169 over the term.

“However, the same mortgage taken over a 40-year term would reduce the monthly repayments to £659.56, but increase the total interest paid to £116,588, resulting in an additional £47,419 in interest,” Mr Cook said.

One you go ver 25 years, what you barely win on reductions. That extra 15 years on the treadmill takes 100/m of the repayments.

MMR is based on mortgage payments not taking ~30% of after tax n expense income.

 

 

 

Link to comment
Share on other sites

7 hours ago, Democorruptcy said:

Yep.

It might be better than nothing but crap in it's present form and needs changing.

Keep in mind that before MMR theres was nothing, zilch.

Just a vague idea that the banks would not do anything stupid.

As it stands, 25+ mortgage terms are being used to take~100/m off the mortgage payments.

Nuts.

Theyd be better off increasing their income. Or reducing their spend.

But hey ho, 30-40 year mortgages are being used as the new IO mortgage.

The BoE is constantly 'reviewing' mortgages. When it decides that theres too many 25+ year mortgages, or at least mortgages extending into retirement, being sold, itll just update the rules and ban them.

Theres a couple things to keep in mind:

1) Theres still TFS money slushing around. Thats why banks are still so keen to  sell mortgages.

2) There's very few mortgages being sold.

 

 

Link to comment
Share on other sites

20 minutes ago, spygirl said:

Keep in mind that before MMR theres was nothing, zilch.

Just a vague idea that the banks would not do anything stupid.

As it stands, 25+ mortgage terms are being used to take~100/m off the mortgage payments.

Nuts.

Theyd be better off increasing their income. Or reducing their spend.

But hey ho, 30-40 year mortgages are being used as the new IO mortgage.

The BoE is constantly 'reviewing' mortgages. When it decides that theres too many 25+ year mortgages, or at least mortgages extending into retirement, being sold, itll just update the rules and ban them.

Theres a couple things to keep in mind:

1) Theres still TFS money slushing around. Thats why banks are still so keen to  sell mortgages.

2) There's very few mortgages being sold.

 

 

I wouldn't call 1 million a year a few O.o. Ok down from the highs of 2007 but year on year increases since 2007 and FTB'ser are back to their previous highs

Link to comment
Share on other sites

The nubmers are aroudn the levels of the mid 90s, where there was doom n gloom.

They reckon the 80k mortgage a month are needed to keep up with death divorce + debt. Otherwise prices start to fall as invetory racks up.

I guess the reason why they havent - or at least not much - is down to people living a bit longer, low rates, removing the urgency to sell  and the distortions of BTL, where theres now a quiet large owned of super-home owners, 'owning' 10+ houses.

Now, bear in mind that most fo the OI BTL is going to rapidly-ish unwound as the HMRC tax demand lands on LLs doormats, theres goign o be about 8-10 years stock being shifted in a couple of years.

Get away from London/Se and most places esp. North show same nominal prices compared to 10-15 years ago.

 

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...