Author Topic: Abbey are first bank to offer 5 times salary mortgage (Read 1187 times)

55starchief · « **on:** November 01, 2006, 11:13:39 am »

http://www.ft.com/cms/s/f681eae0-692a-11db-b4c2-0000779e2340.html

Titsy · « **Reply #1 on:** November 01, 2006, 12:30:50 pm »

Doesn't help much with house prices the way they are....

55starchief · « **Reply #2 on:** November 01, 2006, 12:33:25 pm »

Quoting: Titsy

Doesn't help much with house prices the way they are....

Thats why they have done it mate, before you might have seen 3 times your sallary but the average was 2.5

Kenny · « **Reply #3 on:** November 01, 2006, 12:36:28 pm »

Not much help to single buyers, but not bad if there's 2 of ya.

Still not as good as Royal Bank of Scotlands affordability mortgage though, but then in every other way RBS suck monkeyballs... they were suppose to release the funds yesterday for our flat but they haven't

hope they sort themselves out soon, i wanna move!

RBS rant over....

wow, i managed to prais and condem one company in a single rant

F Body · « **Reply #4 on:** November 01, 2006, 12:36:56 pm »

Still got to pay 5 times the interest

They are also taking about 50 year mortgages

End result is people will just work for their whole life to pay the mortgage and will be able to afford little else

Of course the Banks and Mortgage companies think it's great

55starchief · « **Reply #5 on:** November 01, 2006, 12:38:55 pm »

Quoting: Kenny

Not much help to single buyers, but net bad if there's 2 of ya.

Yes it is a single person can get the x5 on their salary and a couple can get x5 on each of their salaries

Titsy · « **Reply #6 on:** November 01, 2006, 12:43:40 pm »

Quoting: 55starchief

Yes it is a single person can get the x5 on their salary

Yeah, but like I said thats still not much help unless you're on wedge because of house prices being so high....

55starchief · « **Reply #7 on:** November 01, 2006, 12:46:19 pm »

Quoting: Titsy

Yeah, but like I said thats still not much help unless you're on wedge because of house prices being so high....

fine, still better than before. There are properties available mate, where i ahve just bought there are housing association properties. Most developers have to include this type of housing on new developments and although you wont own it out right its still a place of your own

Kenny · « **Reply #8 on:** November 01, 2006, 12:52:58 pm »

I'd recommend doing a group mortgage, just to get on the ladder. Add 2 -3 friends salary together and you can get a nice place. (just make sure you all sign a legal doc. saying you'll sell if one of you want to. the banks are encorageing(sp) these kind of mortgages now...

when we got our mortgage they even asked if we were going to rent out a room as this is counted as additional income...

Titsy · « **Reply #9 on:** November 01, 2006, 01:23:13 pm »

Quoting: Abbey

Individuals or couples with a 25 percent deposit and an annual income of 50,000 pounds or more will be able to borrow at the new level.

so no use for those trying to get on the property ladder...

55starchief · « **Reply #10 on:** November 01, 2006, 01:26:57 pm »

Quoting: Titsy

so no use for those trying to get on the property ladder...

Others will follow suite soon and expect changes of duration from 25 to 30 or 35 years. Meaning people on average incomes should be eligable for the new rates

Pod · « **Reply #11 on:** November 01, 2006, 03:29:15 pm »

Quoting: Abbey

25 percent deposit

That's a bit of a killer.
Even on a 100k house/flat, you need to come up with 25k up front.

FUBAR · « **Reply #12 on:** November 01, 2006, 03:57:40 pm »

Quoting: Pod

That's a bit of a killer.
Even on a 100k house/flat, you need to come up with 25k up front.

Thats a total killer for me, I have no cash for a house deposit, certainly not 25 grand!!!

Roadkill · « **Reply #13 on:** November 01, 2006, 05:14:49 pm »

Basically the Abbey offer is just a publicity stunt.

As mentioned above it is NO HELP WHAT SO EVER to the average person.

It's also HIGHLY likely that these types of Mortgage will come with higher interest rates to cover the lenders increased "risk".

No help at all.

Kenny · « **Reply #14 on:** November 01, 2006, 06:03:13 pm »

the mortgage Rachel and i have just got is 100% mortgage from RBS. it works on affordability (so non of this x3, x5 crap).

put it this way, when we went to abby they said we could get a max £80K.

then went to RBS (we'll a broker but...) and we were offered a max of £211K.

so we went for them

only problem with this 100% mortgage is the high (6.25%) interest rate which is a bit high, but as new buyers we had no choice.

Oh, all was completed at 1700 today! i have the keys

55starchief · « **Reply #15 on:** November 01, 2006, 06:12:51 pm »

Well my second mortgage is with the abbey around 130k at 4.62% for 2 years intrest only my first mortgage is with C&G cant remember the rate but it was about the same.

oh yeah and i exchanged yesterday so i now have 2 appartments

hope to complete on the new one early next year

Ponti · « **Reply #16 on:** November 01, 2006, 06:25:21 pm »

Quoting: Kenny

Oh, all was completed at 1700 today! i have the keys

Quoting: 55starchief

oh yeah and i exchanged yesterday so i now have 2 appartments hope to complete on the new one early next year

Well Done you two. Now I suppose it's my turn. Off looking tomorrow.
Best we could do as I'm not able to so on 1 income was 113,000 with a 10% deposit.

Jo · « **Reply #17 on:** November 01, 2006, 07:45:19 pm »

We had a housing association house to get us on the housing ladder we had 60% mortgage & 40% rent which was affordable, otherwise we'd have had no chance, we sold that & 2 years ago bought the house we have now and it's all ours, well in 17 yrs time lol

55starchief · « **Reply #18 on:** November 01, 2006, 09:59:29 pm »

Quoting: Podette

We had a housing association house to get us on the housing ladder

Well they are building more and more of those houses and apartments as part of estates now. The site my new place is on has about 30 homes classed as affordable housing

Roadkill · « **Reply #19 on:** November 01, 2006, 10:11:23 pm »

As a side note for first time buyers - avoid interest only mortgages these tend to be aimed at "professionals".

They look great but quickly F@ck you over.

See "endowment" mortgages.

Also be VERY wary of any mortgage over 5.5% . . . If your payments are around the £800 mark a 1/4% rise will equal £40 ish - at least.

Also note interest rates are likely to rise again soon.

Also, where possible, put a deposit down. Minimum 5%, but preferably 15%.
This way you'll get far more favourable interest rates AND shorter tie-ins.

Finally, ignore "incentives" . . . by this I'm talking cash backs . . . . these are pointless in the long term.
When I say ignore them, ignore them entirely when making your decision on a mortgage.

55starchief · « **Reply #20 on:** November 01, 2006, 10:18:04 pm »

The best advice is to get a good broker, and not one that offers you the most money.

Roadkill · « **Reply #21 on:** November 01, 2006, 10:27:52 pm »

I had my first Mortgage with the Abbey . . . Good company I found . . . . . but that was a few years back, now.

philoldsmobile · « **Reply #22 on:** November 01, 2006, 11:41:24 pm »

Quoting: Titsy

Yeah, but like I said thats still not much help unless you're on wedge because of house prices being so high....

indeed....

i'm on what in bedford is a pretty strong wage, (bedford wages suck) but i'd still be nearly 80k short of an average house in this area if i borrowed 5 times my salary....i'm still 25k short of an appartment...

the prospect of ploughing every single penny i earn into a shoebox is simply unthinkable.. there has to be another way...

55starchief · « **Reply #23 on:** November 01, 2006, 11:51:44 pm »

Quoting: philoldsmobile

there has to be another way...

there is mate do exactly what pod and podette did and use a housing association property.

Roadkill · « **Reply #24 on:** November 02, 2006, 02:46:16 pm »

Quoting: philoldsmobile

there has to be another way...

Murder a rich relative ?

Quoting: philoldsmobile

the prospect of ploughing every single penny i earn into a shoebox is simply unthinkable

I did it, BTW. Mine wasn't that small but the place was a dump, really.

If you want to get on the ladder you've got to start when you can - don't whine about how cr@p it is - Tough !

That's the way it works for normal people.

Holding out for a mansion for your first house ain't gonna happen.

Author Topic: Abbey are first bank to offer 5 times salary mortgage (Read 1187 times)

Roadkill

Roadkill

Roadkill

Roadkill