I never knew it was so hard to get a mortgage nowadays
Discussion
Just gave the current mortgage lender a ring to talk figures as I'd seen a house I was kind of interested in buying. It's got a lot more room than the current one for important car repairs and toys etc. Obviously I know it's not the best time for buying and selling.
As it's early days I just wanted to talk through some rough figures and see what the monthly payments would be like
I'm not talking big bucks house value, just into 3 figures. I've owned mine for about 3 years, and there's not a lot of difference between the two houses, maybe £15k against me. Mortgage company happy to lend the money, and a fair bit more if I needed it, borrowing not a problem.
Based on the value of the new house, vs writing the old policy they basically wanted £25k deposit! There's only one scheme they can do, and it's a tracker. Currently that'd be 7.something% - they add 2.2% onto BoE rate, which is more likely to go up than down
f
k that!!! I'm staying put
As it's early days I just wanted to talk through some rough figures and see what the monthly payments would be like
I'm not talking big bucks house value, just into 3 figures. I've owned mine for about 3 years, and there's not a lot of difference between the two houses, maybe £15k against me. Mortgage company happy to lend the money, and a fair bit more if I needed it, borrowing not a problem.
Based on the value of the new house, vs writing the old policy they basically wanted £25k deposit! There's only one scheme they can do, and it's a tracker. Currently that'd be 7.something% - they add 2.2% onto BoE rate, which is more likely to go up than down
f
k that!!! I'm staying putCan you not just port (move) your existing mortgage to the new property, most lenders allow this, then top up the small difference in price with another rate from their current range? This is assuming your current rate is half-decent.
Edited by anonymous-user on Thursday 31st July 17:12
andyquantum said:
Just gave the current mortgage lender a ring to talk figures as I'd seen a house I was kind of interested in buying. It's got a lot more room than the current one for important car repairs and toys etc. Obviously I know it's not the best time for buying and selling.
As it's early days I just wanted to talk through some rough figures and see what the monthly payments would be like
I'm not talking big bucks house value, just into 3 figures. I've owned mine for about 3 years, and there's not a lot of difference between the two houses, maybe £15k against me. Mortgage company happy to lend the money, and a fair bit more if I needed it, borrowing not a problem.
Based on the value of the new house, vs writing the old policy they basically wanted £25k deposit! There's only one scheme they can do, and it's a tracker. Currently that'd be 7.something% - they add 2.2% onto BoE rate, which is more likely to go up than down
fk that!!! I'm staying put
Welcome to the world of finance pre-1997 when reality really bites hard.As it's early days I just wanted to talk through some rough figures and see what the monthly payments would be like
I'm not talking big bucks house value, just into 3 figures. I've owned mine for about 3 years, and there's not a lot of difference between the two houses, maybe £15k against me. Mortgage company happy to lend the money, and a fair bit more if I needed it, borrowing not a problem.
Based on the value of the new house, vs writing the old policy they basically wanted £25k deposit! There's only one scheme they can do, and it's a tracker. Currently that'd be 7.something% - they add 2.2% onto BoE rate, which is more likely to go up than down
f
k that!!! I'm staying putyellowbentines said:
Can you not just port (move) your existing mortgage to the new property, most lenders allow this, then top up the small difference in price with another rate from their current range? This is assuming your current rate is half-decent.
It was laughable, could almost hear the desperation in the womans voice. Apparently they used to be able to do funky stuff with the figures, now they cant. Couldnt even go with fixed rate either (which is what I'm on til early 2010), they're not offering it! Edited by yellowbentines on Thursday 31st July 17:12
andyquantum said:
yellowbentines said:
Can you not just port (move) your existing mortgage to the new property, most lenders allow this, then top up the small difference in price with another rate from their current range? This is assuming your current rate is half-decent.
It was laughable, could almost hear the desperation in the womans voice. Apparently they used to be able to do funky stuff with the figures, now they cant. Couldnt even go with fixed rate either (which is what I'm on til early 2010), they're not offering it! Edited by anonymous-user on Thursday 31st July 17:12
andyquantum said:
Just gave the current mortgage lender a ring to talk figures as I'd seen a house I was kind of interested in buying. It's got a lot more room than the current one for important car repairs and toys etc. Obviously I know it's not the best time for buying and selling.
As it's early days I just wanted to talk through some rough figures and see what the monthly payments would be like
I'm not talking big bucks house value, just into 3 figures. I've owned mine for about 3 years, and there's not a lot of difference between the two houses, maybe £15k against me. Mortgage company happy to lend the money, and a fair bit more if I needed it, borrowing not a problem.
Based on the value of the new house, vs writing the old policy they basically wanted £25k deposit! There's only one scheme they can do, and it's a tracker. Currently that'd be 7.something% - they add 2.2% onto BoE rate, which is more likely to go up than down
fk that!!! I'm staying put
Or alternatively you could run through things with a broker to see what is available to you away from your lender. Depends how much you want to move really.As it's early days I just wanted to talk through some rough figures and see what the monthly payments would be like
I'm not talking big bucks house value, just into 3 figures. I've owned mine for about 3 years, and there's not a lot of difference between the two houses, maybe £15k against me. Mortgage company happy to lend the money, and a fair bit more if I needed it, borrowing not a problem.
Based on the value of the new house, vs writing the old policy they basically wanted £25k deposit! There's only one scheme they can do, and it's a tracker. Currently that'd be 7.something% - they add 2.2% onto BoE rate, which is more likely to go up than down
f
k that!!! I'm staying putActually off that, you're tied in until 2010 so moving would cost you an ERC.
.... like YB says check for portability......
Edited by scotal on Thursday 31st July 17:21
V8mate said:
andyquantum said:
I'm not talking big bucks house value, just into 3 figures.
You're going to spend over a hundred a quid on a house? Are you mad? There's a credit crunch, don't you know!?
Go and find a repitable financial advisor. That is what we did. We even had a choice of lenders and mortgage protections providers.
well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
jessica said:
Go and find a reputable financial advisor. That is what we did. We even had a choice of lenders and mortgage protections providers.
well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
The IFA should have pointed out that generally mortgage protection is a scam.well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
To the OP: 25% LTV is now standard if you want the best rates.
However, as you have just spoken to one provider (your current one) obviously you don't want the best rates.
Remember when your fix ends, you should probably just stick on SVR - that's a good idea too.
walm said:
jessica said:
Go and find a reputable financial advisor. That is what we did. We even had a choice of lenders and mortgage protections providers.
well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
The IFA should have pointed out that generally mortgage protection is a scam.well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
To the OP: 25% LTV is now standard if you want the best rates.
However, as you have just spoken to one provider (your current one) obviously you don't want the best rates.
Remember when your fix ends, you should probably just stick on SVR - that's a good idea too.
ASU can work for some people, it did for me. Mind you Single premium is a scam, no argument there.
Jessica, why did you go to an advisor that charges? And did they rebate the commission on the mortgage, or did they take double bubble?
I'm not too bothered about getting into a new house, just idle curiosity more than anything. I havent read the fine print on portability, the current lender would only go down the route of trackers so called an end to the call at that point.
Pity those who are trying to buy at the moment, average house of say £100k and no-one's doing much in the 90%+ LTV range anymore. I think when I first bought it was 95%, could have done 97% without too much trouble
Pity those who are trying to buy at the moment, average house of say £100k and no-one's doing much in the 90%+ LTV range anymore. I think when I first bought it was 95%, could have done 97% without too much trouble
scotal said:
He's on fixed rate Walm, he's tied in until 2010. If he's only putting the mortgage up a little, there's very little chance he's going to save the cost of the ERC with a new mortgage.
Sorry, good point, missed that. I retract my sarky comment. (It has been a bad day.)Anyway, +1 on the check for portability.
walm said:
jessica said:
Go and find a reputable financial advisor. That is what we did. We even had a choice of lenders and mortgage protections providers.
well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
The IFA should have pointed out that generally mortgage protection is a scam.well worth the fee they charge. they can get you the best deals. and if you are worried about their fees they can in certain circumstances be added to the mortgage,
To the OP: 25% LTV is now standard if you want the best rates.
However, as you have just spoken to one provider (your current one) obviously you don't want the best rates.
Remember when your fix ends, you should probably just stick on SVR - that's a good idea too.
Edited by anonymous-user on Thursday 31st July 18:13
With banks wanting 25% deposits then the only finale will be house prices dropping rather rapidly.
There is imo NO way a first time buyer can come up with 25%. Even if the house/flat is 100k thats still 25k which i doubt many can get their hands on.
It is for the best though imo as these prices need to settle back to realistic levels and if people can't borrow to buy them then they aren't getting sold.
Round here i,d need 36k plus 1800 stamp duty etc..... just for a little two bed.
There is imo NO way a first time buyer can come up with 25%. Even if the house/flat is 100k thats still 25k which i doubt many can get their hands on.
It is for the best though imo as these prices need to settle back to realistic levels and if people can't borrow to buy them then they aren't getting sold.
Round here i,d need 36k plus 1800 stamp duty etc..... just for a little two bed.
yellowbentines said:
walm said:
To the OP: 25% LTV is now standard if you want the best rates.
However, as you have just spoken to one provider (your current one) obviously you don't want the best rates.
Remember when your fix ends, you should probably just stick on SVR - that's a good idea too.
25%LTV is NOT now standard for the best rates, minimum 25% deposit is, which equates to 75% LTV (I think this is probably what you meant anyway, don't mean to be pedantic). Also many fixed rates no longer revert to SVR, some go to a tracker, e.g. base rate + 1.99%, which can actually be better than some of the new rates out there when you take into account arrangement fees and switching costs to move lenders.However, as you have just spoken to one provider (your current one) obviously you don't want the best rates.
Remember when your fix ends, you should probably just stick on SVR - that's a good idea too.
25% deposit, 75% LTV is exactly what I meant. Sorry (again).
I am sure you are right about some SVR's being reasonable value, just not most.
Coincidentally I've just been talking to my broker about this. He claims there are signs of lenders unclenching their sphincters a bit and easing off their knee-jerk reaction to Northern Rock.
Makes sense. After all if nobody can borrow money they can't make any. They're all leeches anyway. What's with these bl00dy arrangement fees? They're earning interest and they want ME to pay THEM to do so?
WTF?
Makes sense. After all if nobody can borrow money they can't make any. They're all leeches anyway. What's with these bl00dy arrangement fees? They're earning interest and they want ME to pay THEM to do so?
WTF?
Flintstone said:
Coincidentally I've just been talking to my broker about this. He claims there are signs of lenders unclenching their sphincters a bit and easing off their knee-jerk reaction to Northern Rock.
It's nothing to do with the lenders. The 'lenders' are in effect 'borrowers' they borrow money from the markets to lend to you. The fact they might be willing to pay more for what little money is available and then pass the charges onto you doesn't mean the magic endless money supply is going to be turned back on any time soon.
Jesus it amazes me that some people just don't get the bigger picture.
Don't talk b0llocks. They've been too scared to lend for fear of a repeat.
"Sorry Simpkins, we're going to have to fire you for doing a Northern Rock". It amazes ME that some people put themselves up as internet experts when they have the sum of feck all idea about that which they spout
"Sorry Simpkins, we're going to have to fire you for doing a Northern Rock". It amazes ME that some people put themselves up as internet experts when they have the sum of feck all idea about that which they spout
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