Mortgages

[accountantpete]

I was under the impression that mortgages were becoming harder to get but one of my clients who is in her 50's and has joint income of around 65K and asked her bank out if curiousity what she could borrow - 365K was the answer.

This cannot be right can it?

[Indizine]

would it dpend what equity would be put into the property? ie was it say for example, a 365k mortgage against a 500k property?

[Paul Norman]

It would depend on a variety of questions, not simply their income.

For me, I would not want to repay a £365k loan on a £65k income....just too much!!!

[Mike Seddon]

The mortgage situation like the apparent recession is 90% press hype and 10% reality.

Yes there are businesses suffering big time and a lot of bad deals are coming home to roost but recession?

I haven't been so busy with work coming out of my ears!

[OldWelshGuy]

You can get a 75% mortgage by just signing a form stating you cn afford the repayments. no real credit status (other than a CCheck to confirm you are not bankrupt.

[RedEvo]

The mortgage situation like the apparent recession is 90% press hype and 10% reality.

Like you Mike we are very busy but to assume the CC is hype is very wide of the mark. The reality is, the effects of it are only just starting to kick in as the credit binge of the past 10 years shakes down.

Strong companies - like yours - could well flourish but don't write the CC off as hype, it really isn't.

All this just my humble opinion but based on extensive reading about the nitty gritty

d

[Paul Norman]

I agree Red. The economic reality is grim. When major banks start to lay off staff, fold, get taken over in emergencies, when household name companies are 60 % down on orders, when international investors are pulling out in droves, its not hype.

I am often accused of talking down the economy, but I am simply observing. Noticing the reality of the situation is not being defeatest or negative, just wise. Excellent businesses will survive, and survive well. But it is not hype. Just ask the employees of Lehmans.

I too am busy. But, much as I would like to think otherwise, my little business is not statistically significant, and, as mentioned above, the real impact has yet to hit.

[RedEvo]

I am often accused of talking down the economy, but I am simply observing.

Me too. I'm also a little smug. I didn't go along with the borrow now pay later brigade so although I have a mortgage I have no other debt.

If a daft laddie like me could see all this was going to unravel how come so many so called clever people - the masters of the universe as they have been laughingly referred to - got it so wrong. No doubt the usual business drivers, fear and greed

d

[Mike Seddon]

Like you Mike we are very busy but to assume the CC is hype is very wide of the mark. The reality is, the effects of it are only just starting to kick in as the credit binge of the past 10 years shakes down.

Strong companies - like yours - could well flourish but don't write the CC off as hype, it really isn't.

All this just my humble opinion but based on extensive reading about the nitty gritty

d

That will teach me to type something in a hurry whilst getting called for dinner!

What I was trying to say and badly put is that the press are whipping up a storm about the current situation and we could all easily give up now because they tell us its doom and gloom for everyone.

A just don't believe we have a 1930 recession on our hands or that we will face a 3 day week etc. Yes the financial markets are in a serious crisis and it's going to get worse before it gets better.

Like you Dave, I've lived within my means and have only one debt (the mortgage) and even that was bought well within what I could afford.

I promise to never rush a post out again!

[Jeewhizz]

I promise to never rush a post out again!