# mortgage situation stinks



## alan hanson (May 21, 2008)

How the hell is one supposed to get a mortgage? well move to be more accurate. 

Basically we have been trying to sell for 9 months now with little luck for the first 6 months. We eventually found a place we liked and someone who offered on ours. Only prob was we had a small bit of negative equity which we could cover so didnt think too much of it. When we went to see the bank about moving as we have a portable mortgage they ripped everything apart askin for a letter of why we want to move, proof we could pay 20 squid of a credit card and cover the negative equity amongst other things. They offered to lend us just under 200k but we only needed 150k.

Anyway we went back with the proof they wanted only to turnaround a decline us for some other reason, gutted wasnt the word.

Now 2 months later we have since lost 3 more houses and 2 buyers we were thinking of callin it a day only for things to pick up.

We now have a offer on ours which leaves us with equity and no cards etc plus more earnings since. We thought we wouldnt have a problem as supposedly banks are starting to lend more. How wrong can i be. When the wife rang up and asked to carry on our previous application on another property (same price) they turned around and said that they would only now lend us 85% not the 95% 2 months ago!!!!!!

we are both devastated looks like 9 months of hard work down the pan for some *** to say no!!!!!! top it off 100 more made redundant at work this week

Sorry for the rant just dont know what to do anymore?

forgot to mention if we look elsewhere we own the bank early repayment fee of 3k!


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## The Cueball (Feb 8, 2007)

I am getting a bit fed up with all the hype and nonsense that is getting thrown around...

People and banks just need to chill out a bit, and return to simple and clear banking....

It would also help if people would stop being greedy and trying to live outwith their wages.....

I hope you get it sorted out mate, but personally, I think we all have another year to wait until things come back to some sort of normality....

By that time I'm sure the scapegoat will have proved to people what the truth was, and we will have a VERY embarrassed PM in our sights.....

:thumb:


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## Gruffs (Dec 10, 2007)

what annoys me is i work like a basterd to have enough money saved for a deposit and a mortgage within my means and the house down the street is gifted to some junky chav for nowt by our useless council. Where is the incentive to better yourself?


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## APK (Oct 6, 2008)

Alan,

My money is on your bank being C&G? sounds like typical behaviour from them.

I am having no trouble arranging mortgages, yes the lenders want more deposit, and 90% is the best you will get generally, do you have any penalties on your existing mortgage, could you move it to another lender who wants your buisiness?


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## alan hanson (May 21, 2008)

APK said:


> Alan,
> 
> My money is on your bank being C&G? sounds like typical behaviour from them.
> 
> I am having no trouble arranging mortgages, yes the lenders want more deposit, and 90% is the best you will get generally, do you have any penalties on your existing mortgage, could you move it to another lender who wants your buisiness?


Its not C&G begins with a N and its quite long but thats all im giving away, lol.

No penalties havent missed a payment on anything whether it be when i had finance on a car, mobile, or mortgage. Trouble is how am i supposed to save 25k and pay a mortgage at the age of 25 earning under 19k


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## colarado red (Jun 5, 2008)

Gruffs said:


> what annoys me is i work like a basterd to have enough money saved for a deposit and a mortgage within my means and the house down the street is gifted to some junky chav for nowt by our useless council. Where is the incentive to better yourself?


just about sums this government up at the moment.we need an election now while there is still time to turn things around not a years time.will have to pay more tax for a year or two to get our finances back in order bu we need change before we are all screwed


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## The Cueball (Feb 8, 2007)

colarado red said:


> just about sums this government up at the moment.we need an election now while there is still time to turn things around not a years time.will have to pay more tax for a year or two to get our finances back in order bu we need change before we are all screwed


Only thing I worry about is that the tax increase will not be for a few years.....

Ask any 'west german' about the solidarity tax (Solidaritaetszuschlag) they were only going to be paying for a few years @ 5.5%........that was around 20 years ago and they are still paying it!

:thumb:


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## colarado red (Jun 5, 2008)

The Cueball said:


> Only thing I worry about is that the tax increase will not be for a few years.....
> 
> Ask any 'west german' about the solidarity tax (Solidaritaetszuschlag) they were only going to be paying for a few years @ 5.5%........that was around 20 years ago and they are still paying it!
> 
> :thumb:


that scares me to


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## PaulN (Jan 17, 2008)

alan hanson said:


> How the hell is one supposed to get a mortgage? well move to be more accurate.
> 
> Basically we have been trying to sell for 9 months now with little luck for the first 6 months. We eventually found a place we liked and someone who offered on ours. Only prob was we had a small bit of negative equity which we could cover so didnt think too much of it. When we went to see the bank about moving as we have a portable mortgage they ripped everything apart askin for a letter of why we want to move, proof we could pay 20 squid of a credit card and cover the negative equity amongst other things. They offered to lend us just under 200k but we only needed 150k.
> 
> ...


Its a risky one but you could sell the house pay off your mortgage and look for a new one elsewhere or maybe rent for 6 months....

My advice would be stay put in your house, you said yourself mores jobs just gone from work so the last thing you need is a larger mortgage.

Its time to dig in and keep your head down.

Cheers

PaulN


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## alan hanson (May 21, 2008)

yeh we had a chat last nite and although its gutting its the sensible thing as if we moved anyhows we would have to pay 5.5k just to secure a mortgage. How the hell the banks got all that money from the gouvernment with no strings attached is just stupid.


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## mba (Jun 17, 2006)

A huge issue with the banks lending to first time buyers (and it would now seem existing home owners) is the size of LTV they offer. When the house prices were high you could get 100% or even 110% mortgages - i could of easily gone in to any bank and got a mortgage. (yes i realise my house would be worth less, but playing it right would mean my mortgage repayments would be also  )

Now the house prices have dropped you automatically assume that getting your first house will be easier, BUT now banks are requiring at the very least 10% deposit (5.5% mortgages) or 25% to get a 3% mortgage. Now the diffrence between 10% and 25% is farking hooooooooge when you are takling in cash.

On a £150,000 house thats an extra £22,500!!!

MArk


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## APK (Oct 6, 2008)

Previously the lenders were not pricing for risk, a 60% mortgage was more or less the same as a 95% one. They are now pricing for risk, I would say 15% deposit is best you will then get a decent deal, which historically will still be good (average mortgage rates over the last 30 years or so have been 6%+) yes it is higher, but you will need a smaller mortgage as the house has probably fallen by £50,000.


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## apebsible (Jun 2, 2009)

I pay an extra 10 per week, but whilst I have a roommate I try to pay about 80 extra per week.

I remember reading somewhere that every 10 extra you pay off your mortgage saves you 80 in interest over the years. 

Do you pay extra off your loan?


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