It'll be a disaster if they need to drop that far because it'll mean we are in a downturn.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
2-3pc please! Keep that mortgage bill low!
Associate
Problem there is all the scandals doing the rounds about PwC etc auditing financials of big companies. It will be just a few years before the situation arrises where 2 companies are in an area. Company 1 does a good job and charges a fair rate while company 2 does a poor job and undercuts company 1. If your tying to save money... company 2. If your house has problems... company 2. Company 1 now goes bust and the whole thing is shot.
FluffySheep
Nationwide to launch mortgages at six times' income for first-time buyers
The UK's biggest building society will let some first-time buyers borrow up to six times their income.
www.bbc.co.uk
That seems like another mortgage related financial crisis waiting to happen....
Things like this will just push house prices up more.
The only reason we have such absurd house prices is due to people being able to borrow so much. If people weren't allowed to borrow so much, the market would have naturally tracked and not gone insane.
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They are leverage on the fact that first time buyer will have more incoming earning potential. They would never lend that on a remortgage deal.
Someone young on a 30k/yr will have much more potential to get salary over 2x that amount which means it will be likely that the multiple is much less down the line and therefore more affordable.
If you think average first time buyer age which is around 30 something now…it may make some sense in the above logic.
It is another way to get the population ever indebted.
Someone young on a 30k/yr will have much more potential to get salary over 2x that amount which means it will be likely that the multiple is much less down the line and therefore more affordable.
If you think average first time buyer age which is around 30 something now…it may make some sense in the above logic.
It is another way to get the population ever indebted.
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The problem with accountancy firms or any corporate level negligence is that the punishment is too light. That’s why these people will keep doing it.
If they get caught, it is only slight repetitional damage. After 6 months everything is forgotten anyway.
What the Chinese did to PwC on Evergrand is probably what everyone should do - bar them (should be more than 6 months tbh), fine them the commission they charged for the contract, and fine them a decent amount. If possible jail the senior management and struck them off.
That way no one would dare to mess around. We are too softie softie tbh.
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Soldato
I do agree with you in general, but actually Valuers are actually still pretty reputable in general, yes there will always be the one or two dodgy ones, but as a whole they are pretty honest and decent. The main thing being is they get paid regardless, you value a property at X, after that you are done, there are no other incetives or agenda so you tend to get honest responses from them.
Lenders use all different ones based on service agreements and financial packages for bulk etc, and apparently there is a shortage of valuers in the industry.
I often thought about doing it myself as I reckon it would be a bit more interesting than what I do, but you need a degree (RICS qualification) which would mean doing some form of university course and I dont think I can be dealing with that on top of working full time with kids etc. Maybe one day.
Im pretty sure @fastwunz does it for a living.
Soldato
Massive moment, just made the redemption payment on the mortgage 
House all paid for.
House all paid for.Nationwide to launch mortgages at six times' income for first-time buyers
The UK's biggest building society will let some first-time buyers borrow up to six times their income.www.bbc.co.uk
That seems like another mortgage related financial crisis waiting to happen....
Things like this will just push house prices up more.
The only reason we have such absurd house prices is due to people being able to borrow so much. If people weren't allowed to borrow so much, the market would have naturally tracked and not gone insane.
Yeah it pushes up prices.
It allows the lender to lock in that customer on a nice profitable rate for 5-10 years and just generally benefits all the businesses involved in house selling.
It does get younger people into more debt for longer.. But that's the trap we are in perpetually
Associate
So longer mortgage debt + the insane student loan debts means that there's going to be a generation trapped into working for longer paying for things they can't afford.
I count myself so lucky that I graduated uni in 2011 and only had 27k on my loan (which I paid off this year).
I'm not sure what's worst, the 6x income mortgages or the zero deposit mortgages. Or maybe the PCP trend on cars. It just all feels designed to trap people.
I graduated in 2007 (what a waste of a degree) and luckily only had 10k of debt. (3k living loan * 3 years )
But I had a poop job for so long I didn't start paying it off until late.
Paid it off a couple of years ago.
For anyone now around average. It's just a graduate tax
Life is basically becoming a subscription. Some of that is good. (ie tv.. Better than buying loads of dvds). Some of it is not.
With cars or pushes up insurance for everyone too. If everyone is driving bangers around an accident might cost 7k in damage.
Now a small bump could easily be 100k with 2 finance cars.
I guess people will still owe the bank when they have to retire due to health.. Or just won't retire.
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Soldato
Massive moment, just made the redemption payment on the mortgage
I can't wait, sub 10k here, it's coming!
Just fixed yesterday on 5 years @ 3.94% with Nationwide. Whilst I know rates are coming down I felt I needed some stability and sub 4% seemed a good place to be. Was on tracker since Feb and feels good to be rid of the 5.74% (Base + .74%) it was on.
I'll be watching and if rates do plummet I can always pay ERC to save some money but for now I am happy with it. Planning to move in <5 years but confirmed I can port the mortgage so still have options.
I'll be watching and if rates do plummet I can always pay ERC to save some money but for now I am happy with it. Planning to move in <5 years but confirmed I can port the mortgage so still have options.
Soldato
And this is how they keep people in the ratrace... I could have purchased something 25% more expensive as my mortage in principal allowed it, since then I've moved jobs and got a 50% uplift in salary. I rather pay of my current house in half the time than to have 50% more of a house to pay for, if I could retire a few years early then it's all the better for me.
Soldato
Good man, now that mortgage payment is all yours.Massive moment, just made the redemption payment on the mortgage
How many of you have re-mortgaged and asked for more money? i.e. Balance left is 200K, but when you renew you ask for 220k? Is it as simple as literally just asking for what you want and then they assess? Do you have to give a reason for wanting to borrow more? Anything more to know?
Just tell them you need the money for a RTX 5090 and they will no questions asked understand
Almost certainly they will ask why I would imagine.
Just tell them you need the money for a RTX 5090 and they will no questions asked understand
Almost certainly they will ask why I would imagine.
In all seriousness, what legal obligations do you have when you tell them said reason? So say you say home improvements and then spend it on a boat...I mean...what difference does it make? They're not going to check afterwards for how much was spent at Screwfix vs Boats R us?
Would like to know the answer to this also tbh.