Mortgages may be capped at 3 times salary

[Jon MW]

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.

...

This is why I searched for East Sussex - it was too easy if you searched in most regions.

[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.

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!

Hell, you can buy 3 bedroom houses for less than 200k in a nice villages (like the one I life in), close to both Edinburgh and Glasgow. I know this because I life in one.

Buy Scotland on Sunday and have a look.

This is in Nottingham (+10mile radius)

http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=REGION%5E1019&radius=15.0&displayPropertyType=flats&minBedrooms=2&maxBedrooms=&minPrice=150000&maxPrice=240000&maxDaysSinceAdded=&retirement=&partBuyPartRent=false&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&oldSecondaryDisplayPropertyType=&newHome=&auction=false&x=68&y=16

The below are flats in Glasgow. (+10mile radius)


http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E93616&sortByPriceDescending=false&minPrice=150000&maxPrice=260000&displayPropertyType=flats&radius=10.0&oldDisplayPropertyType=flats

Really, anyone claiming that for a 1/4mill they can't find a nice place in the UK is talking out of their arse or has never looked properly...or is looking at big city centres only....in which case, what do you expect?

[AndrewT]

Sounds like good news to me.

+1

LOL at Newmanseye saying £250k for a 2-bed flat is a shocking price for a property - I sometimes think that here in London we're living in a differernt country. £250k barely gets you a parking space round here.

[boldie]

Sounds like good news to me.

+1

LOL at Newmanseye saying £250k for a 2-bed flat is a shocking price for a property - I sometimes think that here in London we're living in a differernt country. £250k barely gets you a parking space round here.

you're not wrong...cost of living in London is nuts compared to anything north of it.

[kinboshi]

Sounds like good news to me.

+1

LOL at Newmanseye saying £250k for a 2-bed flat is a shocking price for a property - I sometimes think that here in London we're living in a differernt country. £250k barely gets you a parking space round here.

you're not wrong...cost of living in London is nuts compared to anything north of it.

I'd love to be able to get £250K for my 3-bedroom semi-detached, with decent sized gardens, large garage, in a cul-de-sac location. 

[AndrewT]

Sounds like good news to me.

+1

LOL at Newmanseye saying £250k for a 2-bed flat is a shocking price for a property - I sometimes think that here in London we're living in a differernt country. £250k barely gets you a parking space round here.

you're not wrong...cost of living in London is nuts compared to anything north of it.

Look at this one just round the corner from me - £275,000 for a one bed flat.

[kinboshi]

Sounds like good news to me.

+1

LOL at Newmanseye saying £250k for a 2-bed flat is a shocking price for a property - I sometimes think that here in London we're living in a differernt country. £250k barely gets you a parking space round here.

you're not wrong...cost of living in London is nuts compared to anything north of it.

Look at this one just round the corner from me - £275,000 for a one bed flat.

It's 'stylish' though.

[rex008]

The point of these proposals is, as usual with the "one-eyed Scottish idiot", too late and aimed in totally the wrong direction. Whether people have the ability to pay their mortgages is almost irrelevant. That's not what's brought the banking system to its knees. It's the loans at >100% of value that were/are the problem. Lack of security on the debt, and then transferring the risk on that debt in such a way that the lack of security becomes, if not hidden, then an incalculable amount, is what caused the problems.

Legislate for maximum LtoV, sure, but don't tell me how much mortgage I can afford compared to my salary when I have 40% equity in a house. The Scottish idiot has no idea what my salary is going to do for the next 25 years. Neither do I, for that matter, but if I do default on a mortgage at least all the debt is recoverable and I don't take the bank down with me.

/Rant

[ItsMrAlex2u]

Sounds like good news to me.

+1

LOL at Newmanseye saying £250k for a 2-bed flat is a shocking price for a property - I sometimes think that here in London we're living in a differernt country. £250k barely gets you a parking space round here.

you're not wrong...cost of living in London is nuts compared to anything north of it.

I'd love to be able to get £250K for my 3-bedroom semi-detached, with decent sized gardens, large garage, in a cul-de-sac location. 

Blatant "I live in a big house" brag post

[TheChipPrince]

The point of these proposals is, as usual with the "one-eyed Scottish idiot", too late and aimed in totally the wrong direction. Whether people have the ability to pay their mortgages is almost irrelevant. That's not what's brought the banking system to its knees. It's the loans at >100% of value that were/are the problem. Lack of security on the debt, and then transferring the risk on that debt in such a way that the lack of security becomes, if not hidden, then an incalculable amount, is what caused the problems.

Legislate for maximum LtoV, sure, but don't tell me how much mortgage I can afford compared to my salary when I have 40% equity in a house. The Scottish idiot has no idea what my salary is going to do for the next 25 years. Neither do I, for that matter, but if I do default on a mortgage at least all the debt is recoverable and I don't take the bank down with me.

/Rant

You have a 400k house, you have nothing to rant about!! 

[kinboshi]

Sounds like good news to me.

+1

LOL at Newmanseye saying £250k for a 2-bed flat is a shocking price for a property - I sometimes think that here in London we're living in a differernt country. £250k barely gets you a parking space round here.

you're not wrong...cost of living in London is nuts compared to anything north of it.

I'd love to be able to get £250K for my 3-bedroom semi-detached, with decent sized gardens, large garage, in a cul-de-sac location. 

Blatant "I live in a cheap house" brag post

FYP

[EvilPie]

The point of these proposals is, as usual with the "one-eyed Scottish idiot", too late and aimed in totally the wrong direction. Whether people have the ability to pay their mortgages is almost irrelevant. That's not what's brought the banking system to its knees. It's the loans at >100% of value that were/are the problem. Lack of security on the debt, and then transferring the risk on that debt in such a way that the lack of security becomes, if not hidden, then an incalculable amount, is what caused the problems.

Legislate for maximum LtoV, sure, but don't tell me how much mortgage I can afford compared to my salary when I have 40% equity in a house. The Scottish idiot has no idea what my salary is going to do for the next 25 years. Neither do I, for that matter, but if I do default on a mortgage at least all the debt is recoverable and I don't take the bank down with me.

/Rant

This just about sums up my view on the subject.

Very well ranted sir.

[byronkincaid]

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5001536/The-FSA-mortgage-cap-how-it-affects-you.html

[rex008]

The point of these proposals is, as usual with the "one-eyed Scottish idiot", too late and aimed in totally the wrong direction. Whether people have the ability to pay their mortgages is almost irrelevant. That's not what's brought the banking system to its knees. It's the loans at >100% of value that were/are the problem. Lack of security on the debt, and then transferring the risk on that debt in such a way that the lack of security becomes, if not hidden, then an incalculable amount, is what caused the problems.

Legislate for maximum LtoV, sure, but don't tell me how much mortgage I can afford compared to my salary when I have 40% equity in a house. The Scottish idiot has no idea what my salary is going to do for the next 25 years. Neither do I, for that matter, but if I do default on a mortgage at least all the debt is recoverable and I don't take the bank down with me.

/Rant

You have a 400k house, you have nothing to rant about!! 

Well, yes, but my mortgage is less than half that, and if we want to move to a house that's another, say 75k (+ 25k moving costs, mostly tax), it would probably take me over this 3xsalary limit. And Scottish Idiot (c) would say I'm not allowed. Why? Who's at risk? Me? Protect me from myself, yes thanks Gordon, cos if you didn't, I'd surely do something silly.

/Rant2

Besides, if I was in London and had a 400k house I'd be considered a pauper .

[outragous76]

Gross property price isnt the problem per say. The problemis net loss as a % in these difficult times.

ie. if you are in London  - you have a 'flat' for 250k - if that falls 10% you need 25k to cover that loss (paper loss). The problems occur when a paper loss turns into an actual loss when you lose your job etc.

The same 10% price fall up north on say a 90k flat is obv only 9k. the paper loss effect is the same (ie still 10% value) - but the actual gross loss if realised isnt so much of a problem.

I know everyone knows this - it just seemed relevant.

Paper losses arent stricly a problem. Infact in some instances they can be a benefit. Lets say you want to buy a bigger house, you may have 'lost' value of 10k - but the house you want to buy if you are moving up may have falllen by 50k (relatively speaking). Therefore providing you arent in negative equity and you can afford the next deposit - it can be beneficial.