Property BOOM!

[AtW]

When the pack of cards falls later in the year and the BOE raises rates what rate will you be paying when the deal wears off?

Rates (BoE) not going up now - we’d be lucky if they don’t go down for effective wealth tax (on people with real money).

[AtW]

You can now borrow for 0% and infinite amount as long as your deposit is in main Tulip-coin

[vetran]

A 25 year 330K repayment mortgage at 3% is £1560 a month, at 5% its £1900 per month.

What interest rate did you use to get £2800 per month?

shorten the term to less than half for us old farts and the standard variable rate is 4-6%

When the pack of cards falls later in the year and the BOE raises rates what rate will you be paying when the deal wears off?

[northernladuk]

For a joint income it works out a 4K after tax, plus potentially child benefit. Which a single breadwinner on 60K will have to hand back. They will just get £3600 as you say.

Useful. Thanks.

[Fraidycat]

£60k is £3600 after tax.

For a joint income it works out a 4K after tax, plus potentially child benefit. Which a single breadwinner on 60K will have to hand back. They will just get £3600 as you say.

[ChimpMaster]

£60k so say £4-5k a month after tax depending on wage balance, borrowing £330K at say £800 per £100K so that is £2.8K a month on the mortgage. Blimey!

£60k is £3600 after tax.

We have a mortgage of £350k and it is £1600/month on repayment.

[Fraidycat]

£60k so say £4-5k a month after tax depending on wage balance, borrowing £330K at say £800 per £100K so that is £2.8K a month on the mortgage. Blimey!

A 25 year 330K repayment mortgage at 3% is £1560 a month, at 5% its £1900 per month.

What interest rate did you use to get £2800 per month?

[mallisarealperson]

Return of bumper sized mortgages as banks loosen rules

Aspiring homeowners can now borrow much more after banks raised the cap on mortgage sizes. Lenders have begun to relax affordability rules for borrowers after tightening them last year amid worries over the economy's health.

High street banks including NatWest, Lloyds and HSBC will once again offer mortgages worth five times a borrower's yearly salary, while Santander and Barclays now lend up to 5.5 times an applicant's income.

For most of last year borrowers were only eligible for loans worth up to 4-4.5 times their income.

This means home buyers will now be able to qualify for much bigger loans. A couple with a combined income of £60,000 would be able to borrow up to £330,000 rather than £240,000, for example.

Banks' easing of affordability criteria is the latest sign the mortgage market is opening back up after a year of restrictions. Hina Bhudia of Knight Frank Finance said the vaccine roll out had made lenders more confident.

...

According to analysts at Moneyfacts, there are now 518 deals available for borrowers with a 15pc deposit, up from the 323 available six months ago. Meanwhile, the number of deals for buyers with a 10pc deposit has climbed from a low of 48 in August to 277 today, though this is still significantly less than the 779 deals available in February 2020.

...

High street lender TSB cut rates on its low-deposit deals last week however, suggesting banks are becoming more relaxed about lending in this area. Banks are also beginning to consider bonuses once again when assessing whether a borrower can afford a mortgage.

Though traditionally an acceptable form of income when applying for a home loan, some lenders refused to take bonuses into account last year when assessing affordability.

Restrictions remain in place for self-employed workers, who in some cases are having to find a 40pc deposit to qualify for a loan.

But you have to have a job to get a mortgage. Lots of people on furlough may never go back to their job.

Will be an interesting year when the real affects of the economy start to bite. Country cannot afford to pay peoples wages forever.

lower salaries, ir35 hit contractors etc.

[vetran]

My rent is cheaper!

My mortgage is probably cheaper!

[ladymuck]

£60k so say £4-5k a month after tax depending on wage balance, borrowing £330K at say £800 per £100K so that is £2.8K a month on the mortgage. Blimey!

My rent is cheaper!

[mattster]

£60k so say £4-5k a month after tax depending on wage balance, borrowing £330K at say £800 per £100K so that is £2.8K a month on the mortgage. Blimey!

Less than that on current rates - we are paying less than a grand on about £215k I think, and rates are even lower now if you've got a big enough deposit.
I'd be more worried about an impending property boom if they lower deposit requirements or bring back interest only. This government is a one trick pony economically, so I wouldn't put it past them to try and goose the housing market (again) if it starts to look a bit wobbly. Can't have a property crash on top of Covid and brexit, and frankly it seems just about the only thing the great unwashed actually care about.

[vetran]

£60k so say £4-5k a month after tax depending on wage balance, borrowing £330K at say £800 per £100K so that is £2.8K a month on the mortgage. Blimey!

[northernladuk]

A brave move bearing in mind the state the economy is going to be in for the foreseeable future.

[ladymuck]

Return of bumper sized mortgages as banks loosen rules

Aspiring homeowners can now borrow much more after banks raised the cap on mortgage sizes. Lenders have begun to relax affordability rules for borrowers after tightening them last year amid worries over the economy's health.

High street banks including NatWest, Lloyds and HSBC will once again offer mortgages worth five times a borrower's yearly salary, while Santander and Barclays now lend up to 5.5 times an applicant's income.

For most of last year borrowers were only eligible for loans worth up to 4-4.5 times their income.

This means home buyers will now be able to qualify for much bigger loans. A couple with a combined income of £60,000 would be able to borrow up to £330,000 rather than £240,000, for example.

Banks' easing of affordability criteria is the latest sign the mortgage market is opening back up after a year of restrictions. Hina Bhudia of Knight Frank Finance said the vaccine roll out had made lenders more confident.

...

According to analysts at Moneyfacts, there are now 518 deals available for borrowers with a 15pc deposit, up from the 323 available six months ago. Meanwhile, the number of deals for buyers with a 10pc deposit has climbed from a low of 48 in August to 277 today, though this is still significantly less than the 779 deals available in February 2020.

...

High street lender TSB cut rates on its low-deposit deals last week however, suggesting banks are becoming more relaxed about lending in this area. Banks are also beginning to consider bonuses once again when assessing whether a borrower can afford a mortgage.

Though traditionally an acceptable form of income when applying for a home loan, some lenders refused to take bonuses into account last year when assessing affordability.

Restrictions remain in place for self-employed workers, who in some cases are having to find a 40pc deposit to qualify for a loan.