Mortgages

[jamesbrown]

Doesn't make sense, the market returns well above the interest rate - I would rather dump money into stonks than overpay on the house.

It does make sense in terms of risk to the bank if the market crashes. That's why the majority of options w/ a 90% LTV disappeared at the start of the pandemic.

Meanwhile, I hope you have stonking success with your stonks.

[cannon999]

Yup. 20% is the magic number to reach a good variety of options, generally speaking.

Doesn't make sense, the market returns well above the interest rate - I would rather dump money into stonks than overpay on the house.

[jamesbrown]

That extra 5% deposit makes a significant difference

Yup. 20% is the magic number to reach a good variety of options, generally speaking.

[ladymuck]

I looked a few weeks ago, 2.08% fixed for 2 years with 20% deposit or 2.27%for 5 years, from CMME. That was after some time out, just need to get the renewal in Feb sorted first.

That extra 5% deposit makes a significant difference

[anonymouse]

It is very harsh but that's the reality right now. My credit history is f7cking perfect and long running. The interest rates right now are also extortionate. Best I could get was 3.15% with 15% deposit.

I looked a few weeks ago, 2.08% fixed for 2 years with 20% deposit or 2.27%for 5 years, from CMME. That was after some time out, just need to get the renewal in Feb sorted first.

[jamesbrown]

It is very harsh but that's the reality right now. My credit history is f7cking perfect and long running. The interest rates right now are also extortionate. Best I could get was 3.15% with 15% deposit.

The comparatively small deposit is probably your main issue - that's definitely been trailed in the press, particularly for the self-employed. Worried about a post-pandemic crash, negative equity and lack of work, I suppose.

[cannon999]

That is a bit harsh though. There's lots of reasons why people move and don't register on the electoral roll. To turn down a person with an otherwise perfect credit history does sound like they're looking for reasons to decline.

It is very harsh but that's the reality right now. My credit history is f7cking perfect and long running. The interest rates right now are also extortionate. Best I could get was 3.15% with 15% deposit.

[ladymuck]

I can only go by what experian tell me. Yes that's what I was told by the broker. They also said that after contacting the bank that even though my financial score was excellent it was not perfect due to address history and they can only do 10% for someone with a perfect score.

That is a bit harsh though. There's lots of reasons why people move and don't register on the electoral roll. To turn down a person with an otherwise perfect credit history does sound like they're looking for reasons to decline.

[cannon999]

You wouldn't have a credit score like that, being absent from the electoral roll. Something smells there. Anyway, you don't know which company they are going to use for the credit check (some banks consistently use the same company, but many ask one of several companies) and none of the banks look at the scores you see - they have their own scoring systems based on the contents of the credit report.

I can only go by what experian tell me. Yes that's what I was told by the broker. They also said that after contacting the bank that even though my financial score was excellent it was not perfect due to address history and they can only do 10% for someone with a perfect score.

[cannon999]

Your credit score wasn't that with them otherwise they would have given you the mortgage.

And yet I am registered with experian and that's what they are telling me. I have signed up to their pro plan and it says I can gain the remaining 17 points by resolving the electoral roll issue. But I am sure you know better. They did give me the mortgage, just 15%, not 10%.