Mortgages may be capped at 3 times salary

[Acidmouse]

is this not what it used to be like? it only changed when people started borrowing too much in late 90's?

[rex008]

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.

Agreed. If I'm going to move upwards, I'd rather do it when prices are low than high, as the absolute difference between my house and the one I buy will be lower (in theory, assuming you can get the same discount on the asking price as you accept on your own). Problem at the moment is that no-one is buying at pretty much any price, it seems round here.

That's another discussion/rant though .

On another issue of government/regulatory stupidity, the company I work for is doing ok at the moment, but wants to borrow some money for investment. Cash flow and business plan is good, repayment plan is sound and achievable. The bank won't lend without security, but because it's mostly a software company that doesn't own its office, the company has no security the bank will accept. So they would accept a charge on the owners' house, which they're not keen on as they've already sunk a fair bit into the company. The new government Enterprise Loan Fund (loan guarantee scheme) won't guarantee the loan because there is other security available. However, if the owners were to take out a mortgage for all the available equity on their house for some other reason (stake me to tackle the WSOP, I suggested), then the ELF would guarantee the loan and the bank would lend. How fcked up is that?

[boldie]

is this not what it used to be like? it only changed when people started borrowing too much in late 90's?

yes

[phatomch]

didnt help when northern rock were offering 125% ltv mortgages and we could still offer our clients 125% sec loans, then house prices wen't for a burton.

[byronkincaid]

is this not what it used to be like? it only changed when people started borrowing too much in late 90's?

yes

lol no, there was a housing bubble in the late 80's with multiples well over x3

[boldie]

is this not what it used to be like? it only changed when people started borrowing too much in late 90's?

yes

lol no, there was a housing bubble in the late 80's with multiples well over x3

Really? In Holland the rule was always 3x the income...never more (well, more now obv now that houses are worth gazillions and prices will only go up....oh wait)

p.s. I am fine with people borrowing 4, 5 or 6x their income to buy a house.

Just don't come crying to me when you lose it...that's all I ask. and the bank that lends it to people shouldn't come and ask for my money either.

[ScottMGee]

On another issue of government/regulatory stupidity, the company I work for is doing ok at the moment, but wants to borrow some money for investment. Cash flow and business plan is good, repayment plan is sound and achievable. The bank won't lend without security, but because it's mostly a software company that doesn't own its office, the company has no security the bank will accept. So they would accept a charge on the owners' house, which they're not keen on as they've already sunk a fair bit into the company. The new government Enterprise Loan Fund (loan guarantee scheme) won't guarantee the loan because there is other security available. However, if the owners were to take out a mortgage for all the available equity on their house for some other reason (stake me to tackle the WSOP, I suggested), then the ELF would guarantee the loan and the bank would lend. How fcked up is that?

Rough translation the business owners don't think its worth the risk but are happy for the bank or the government to take the risk.

[rex008]

Untrue in this case, but not my point. My point was that the government will help out a company whose books look fairly screwed, but not one that is actually looking reasonably healthy and wants to invest for expansion. It just seems wrong. It's also a lot harder to get help for a company that exports a lot (which mine does), even though that's the kind of company the government should like.

It's been a ranty thread for me...

[cia260895]

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.

I lol'd at this bit

There are plenty of local amenities, with Finchley Road, The O2 Centre, Hampstead Village and Belsize Village all within walking distance. SOD  THAT WALK

[sovietsong]

Pls stop telling the southerners about the north. We don't want aload of shandy drinking cockneys dirtying the beautiful north.

Thank you.