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I say definitely NOT a good idea. First of all, I'm on just over £14000, the mortgage payments alone would take up over half my monthly wages. I would not dream of trying to get a mortgage that was five times my salary.
Property prices are ridiculous. I refuse to buy a titchy little place with my hard-earned money. I want to see something for it. The way it's going, first time buyers are going to have to do that 50% house share / own scheme. It'll be the only way for people to get onto the property ladder who don't earn a lot of money.
Locally, there are building houses in a rough area. Guess how much they start out at? £160000. No kidding. It goes to show you that the house builders do not take in the area they are in building in nor the population income either.
The whole country's going to pot! |
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jojo
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crazy suggestion if you cant get a mortgage with a joint income of 50k then move to an area you can. dont work/live in london move to a cheaper area. why pay £250000 for a terrible small house there are plenty jobs houses north of london and plenty of nice houses have a better standard of living in a better area in a nicer outside london. |
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sam
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i beleive it's so that first time buyers can get on the ladder however, the market is going to burst next year so there will be people who can't afford the repayments and more repossessions. By the end of next year it will be a buyers market so i would advise people to wait until early 2008 to buy a property. |
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Latin Techie
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The banks just get you in hock ready for when they takeover the property. They know the market cannot sustain price levels and artificially held prices for ever, so they do something to keep it all going, of course if the market in the States is now "correcting", then guess what ? Look out U.K ! It is up to the man in the street not to get sucked in to "sweeter than wine" offers. |
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Vicky
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I can't believe that this has only just come to light, i work in mortgages and loans and we work alongside a lender that has offered 5x income since they set up 3 years ago as a sister company to GMAC! This lender is an adverse lender aswell which makes it worse because even if you have been repossessed in the past you can still get it! |
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Coley
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I think they just wanna be able to hit you with interest when you can't make the payments and get in debt. |
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MJFrog
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If you actually read the small print of these new mortgages then you can only have one if:
1. You have a 25% deposit
2. Your houshold income is £60,000+ a year
3. Your credit will be heavily scrutinised
4. As will you incomings and outgoings
Realistically, this isn't for the first time buyer - its for the well off business couple / family who are moving up the property ladder. |
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'Dr Greene'
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I agree it's bad for two reasons.
It will help fuel property prices by enabling even higher asking prices to become attainable against higher borrowings.
It will only work whilst interest rates stay low. I agree that as interest rates have fallen the old multipliers have become out of date, but it never seemed to have held back property prices so no harm done.
As soon as interest rates rise, these borrowings will cripple! |
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IloveMarmite
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It just means more debt !!! |
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Sidharth S
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no |
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Ivan
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Would you sell your house for less than 50k, I think you have answered your own question, the Abbey is giving people more chance to own there own house, so in one way it is a good idea but as you say repossession is high, |
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Denny
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Very bad idea some people are struggling with the one they have now.
What happens if you borrow the maximum and the interest rate rises you will lose your house. |
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The brainteaser
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suggest thats fine, but 5 times 300 quid, is only 1500 of loan, suggest you get a better job |
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