FSA to cap mortgage borrowing

[expat]

Let us prevent the ill-effects of second homes by putting a cap on income so that no-one can afford to buy a second home.

Or how about a Supertax? It was 95% when Brown and Darling joined the Labour Party, I'm sure they remember it with affection.

[Cyberman]

If you'rer such a visionary, economic whiz how come you still chase 40k permie jobs and didn't sell your house 2 years ago

I did put my house on the market almost two years ago, but as soon as the banking crisis hit, I decided not to sell because it was obvious to me at that time that holding a property is far safer than risking cash in a multitude of banks where only up to 30K at the time was guaranteed. I would have needed ten bank accounts, so pretty wise methinks !!

[d000hg]

A 3X limit will surely have a massive impact. Banning 100% mortgages is pretty meaningless now but I was told only last week by my mortgage advisor that most banks still work at 4X.

Wonder if it will actually go through?

[BrilloPad]

I did put my house on the market almost two years ago, but as soon as the banking crisis hit, I decided not to sell because it was obvious to me at that time that holding a property is far safer than risking cash in a multitude of banks where only up to 30K at the time was guaranteed. I would have needed ten bank accounts, so pretty wise methinks !!

If only we had all listened to the sage of cybertoryshire.

[Cyberman]

If only we had all listened to the sage of cybertoryshire.

Yes indeed. For a start, if HMG had told Northern Rock account holders that their money was guaranteed we would not have seen a run on the bank. The question is though, were the incompetent HMG aware that a guarantee had been in place since 1982 ?

[Mailman_1]

A 3X limit will surely have a massive impact. Banning 100% mortgages is pretty meaningless now but I was told only last week by my mortgage advisor that most banks still work at 4X.

Wonder if it will actually go through?

I was quoted around 6x by Abbey just last week. My current mortgage is with them and I rang to see how much i could borrow for a move up. They came up with over double the amount i needed with no requirement for accounts etc. My FA's advise that self cert and no accounts arent a problem either and are quoting the same rates as the mainstream banks for tracker and fixed price mortgages. A 25%+ deposit goes a long way at the moment.

[sasguru]

I did put my house on the market almost two years ago, but as soon as the banking crisis hit, I decided not to sell because it was obvious to me at that time that holding a property is far safer than risking cash in a multitude of banks where only up to 30K at the time was guaranteed. I would have needed ten bank accounts, so pretty wise methinks !!

Cretin.

By the time the further 50% drop in house prices takes place, you'll wish you had "risked" the banks.

[milanbenes]

fair doos...

sas 1 cyberman 0


Milan.

[Cyberman]

Cretin.

By the time the further 50% drop in house prices takes place, you'll wish you had "risked" the banks.

I doubt it. Anybody got money in Irish Banks ? Get it out FAST !!!!

[OwlHoot]

http://www.telegraph.co.uk/finance/p...borrowing.html

"FSA to cap mortgages at max 3 times salary and min 5% deposit."

Is this not going to drive down the price of houses ?

average salary = 24,000 (Aug 2008)

Max mortgage for a single is now 72,000 + 3600 for the deposit.

I assume that they will allow some contribution from the partner but if it was as when I bought my first house then that was just X1

That would make it £96000 top whack for Mr and Mrs average.

I do not see this working for years - all that will happen is people will not be able to move.

Yup, they really are as mad as hatters (especially regarding the deposit).