Mortgages may be capped at 3 times salary

[byronkincaid]

http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3136243&c=1

the ramifications of this could be enormous for some people if this goes ahead. anyone over the cap won't be able to remortgage when interest rates start going up. there will never be another housing boom. house prices could go down massively. people like my brother who chipped in with a friend to buy a 2 bedroom flat for 300K are completely screwed. scary stuff

[Robert HM]

Others will benefit though. Such as those too tempted to stretch themselves with impossible mortgage payments and, more importantly, those who will finally sort out their divorce this year and be looking to by in the last quarter in the Croydon are, for instance.

[Bongo]

Sounds like good news to me.

[outragous76]

http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3136243&c=1

the ramifications of this could be enormous for some people if this goes ahead. anyone over the cap won't be able to remortgage when interest rates start going up. there will never be another housing boom. house prices could go down massively. people like my brother who chipped in with a friend to buy a 2 bedroom flat for 300K are completely screwed. scary stuff

hey byron - are you a surveyor? - i work in property and read PW.

Although itis100% certain that there will be legislative change - it is unlikely to soley be this. There will be more emphasis on Loan to Value borrowing as this is more critical IMO

but there will be change - no doubt

[Newmanseye]

Great Idea IMHO, House prices spun way out of control, quarter of a million pounds for a 2 bedroom flat, gimme a break,.

I would love to see this impemented, property prices need a reset as far as i am concerned.  Houses in this country have been overpriced for far too long.

[phatomch]

http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3136243&c=1

the ramifications of this could be enormous for some people if this goes ahead. anyone over the cap won't be able to remortgage when interest rates start going up. there will never be another housing boom. house prices could go down massively. people like my brother who chipped in with a friend to buy a 2 bedroom flat for 300K are completely screwed. scary stuff

hey byron - are you a surveyor? - i work in property and read PW.

Although itis100% certain that there will be legislative change - it is unlikely to soley be this. There will be more emphasis on Loan to Value borrowing as this is more critical IMO

but there will be change - no doubt

secured loans are already down to 75% max ltv at the moment for clean employed people and 65% for self employed or btl properties, but they work it out on det to income instead of income multiples so you can get more. Hard times at the moment.

[Hairydude]

Does anybody think this will have a significant effect on house prices??

I'm a bit worried...Just about to buy a flat as thought just now was the ideal time(basically know a house builder and getting flat for 100% ownership for 69% of list price)

Intention was to buy it as an investment for when market recovers in a few years time and sell it on for profit but if this(3x salary cap) goes through and house prices plummet i'll be royally screwed

[byronkincaid]

hey byron - are you a surveyor?

lol no, i just decided to start taking an interest in investments/business/finance/making money a few months ago so spend some time most days reading stuff on the internet. all I have learnt is that there's nothing i want to invest in atm except perhaps gold, which is meant to be in a bubble which could pop at any moment so you are gonna be looking for a greater fool an all that. anyone know anything about gold? best way to invest in it?

i wrote some stuff out about buying a flat but i just deleted it cos tbh i haven't got a fckin clue. if you think we are in for some crazy inflation then maybe but it's a huge risk imo.

[thetank]

As I understand it, house prices may fall, but it's unlikely they will plummet.

The cost of labour and materials for building new homes remains pretty much fixed, developers will stop building as many homes if there is less profit to be had (ie if the house prices start to plummet).

Less homes being built = more demand (for both new and existing homes). This pattern should cushion any dramatic fall in house prices.

[Royal Flush]

Great Idea IMHO, House prices spun way out of control, quarter of a million pounds for a 2 bedroom flat, gimme a break,.

wtf where can you get a 2 bed flat for 1/4m? Beirut?

[Newmanseye]

Great Idea IMHO, House prices spun way out of control, quarter of a million pounds for a 2 bedroom flat, gimme a break,.

wtf where can you get a 2 bed flat for 1/4m? Beirut?

Thats my point, a 2 bedroom flat in a shit area and you are paying 1/4 of a mil !


Property prices are a joke and as such the gap between those that are rich and poor is growing at alarming rate.

Young families can only get houses by buying is shit areas that may potenitaly be a risk for their children, with the hope of eventually moving up, The system sucks!

but thats my rant over

[boldie]

Great Idea IMHO, House prices spun way out of control, quarter of a million pounds for a 2 bedroom flat, gimme a break,.

wtf where can you get a 2 bed flat for 1/4m? Beirut?

Thats my point, a 2 bedroom flat in a shit area and you are paying 1/4 of a mil !


Property prices are a joke and as such the gap between those that are rich and poor is growing at alarming rate.

Young families can only get houses by buying is shit areas that may potenitaly be a risk for their children, with the hope of eventually moving up, The system sucks!

but thats my rant over

lol..there are a ridiculous amount of 2 bed properties in decent areas going for way less than 1/4 mill.


The 3times salary cap is a good thing IMO..anything over that and people will start to overstretch.

[Newmanseye]

Great Idea IMHO, House prices spun way out of control, quarter of a million pounds for a 2 bedroom flat, gimme a break,.

wtf where can you get a 2 bed flat for 1/4m? Beirut?

Thats my point, a 2 bedroom flat in a shit area and you are paying 1/4 of a mil !


Property prices are a joke and as such the gap between those that are rich and poor is growing at alarming rate.

Young families can only get houses by buying is shit areas that may potenitaly be a risk for their children, with the hope of eventually moving up, The system sucks!

but thats my rant over

lol..there are a ridiculous amount of 2 bed properties in decent areas going for way less than 1/4 mill.


The 3times salary cap is a good thing IMO..anything over that and people will start to overstretch.

name a couple of these areas please

BTW i just searched s1homes and there are 4 flats, 3 are in total toilets for areas and 1 is decent but its still way overpriced for what it is!

[rex008]

You lot are all Southerners I presume? Jesus. I'm trying to sell my 5 bed house on 1/3 acre land for £395k and had 1 viewing in 7 months. And I'm only 40 mins from DTD (at 2 in the morning anyway . You can get a pretty decent flat for 250k near Nottingham.

I think the government imposing 3xsalary cap on mortgages is BS. It will achieve nothing - the banks are already a lot more cautious in their lending - it's bolting the stable door after the horse has long gone.

[Jon MW]

Great Idea IMHO, House prices spun way out of control, quarter of a million pounds for a 2 bedroom flat, gimme a break,.

wtf where can you get a 2 bed flat for 1/4m? Beirut?

Thats my point, a 2 bedroom flat in a shit area and you are paying 1/4 of a mil !


Property prices are a joke and as such the gap between those that are rich and poor is growing at alarming rate.

Young families can only get houses by buying is shit areas that may potenitaly be a risk for their children, with the hope of eventually moving up, The system sucks!

but thats my rant over

lol..there are a ridiculous amount of 2 bed properties in decent areas going for way less than 1/4 mill.


The 3times salary cap is a good thing IMO..anything over that and people will start to overstretch.

name a couple of these areas please

BTW i just searched s1homes and there are 4 flats, 3 are in total toilets for areas and 1 is decent but its still way overpriced for what it is!

I searched East Sussex on Halifax for 2 Bedroom flats less than £1/4m

There were 44 results - Not all of them are in 'toilet' areas imho.

But it is a very humble opinion, what constitutes a nice area and what doesn't does depend on your basis for comparison a bit.