Bank Of England plans to introduce stricter mortgage eligibility criteria

rightwingdub

Just came across this story that the bnk of England are now planning to restrict mortgage lending whereby in the future and perspective buyers will have to put down a minimum deposit of 10% up to a maximum of 25% apparently been backed up by the British government, what do people think.

Personally, I think the Bank of England are been very sensible but I think if they brought in a 25% deposit requirement that would be quite excessive.

http://www.belfasttelegraph.co.uk/business/business-news/bank-of-england-may-restrict-mortgage-lending-14928519.html

the_syco

Mortgage experts have voiced concerns that the proposals would stop first-time buyers getting on to the housing ladder.

LoL. The prats are still going on about the "housing ladder"... :rolleyes:

rightwingdub

the_syco wrote: »

LoL. The prats are still going on about the "housing ladder"... :rolleyes:

The prats have obviously never heard of making sacrifices in order to save for a deposit, a mate of mine and his girlfriend hardly went out for two years as they wanted to put together a 15% deposit on a house.

conorhal

rightwingdub wrote: »

Just came across this story that the bnk of England are now planning to restrict mortgage lending whereby in the future and perspective buyers will have to put down a minimum deposit of 10% up to a maximum of 25% apparently been backed up by the British government, what do people think.

Personally, I think the Bank of England are been very sensible but I think if they brought in a 25% deposit requirement that would be quite excessive.

http://www.belfasttelegraph.co.uk/business/business-news/bank-of-england-may-restrict-mortgage-lending-14928519.html

Well, it's up to a 25% max, but a minimum 10% deposit seems very sensible to me.
Firstly, it may force down prices as people need to save for a deposit, and secondly, it reassures lenders because the applicant has at least demonstrated an ability to save and manage money.
I just knew the that the 'end times were neigh' for the property market with the emergence of 100% mortgages, they stood out as a prime indicator that house prices had way exceeded affordability and pandered to those investing for a 'quick flip' sale or the types that clearly couldn't afford the property that they were looking at in the first place.
Frankly this move by the Bank of England seems like a sensible and positive regulatory move for the market and the consumer.

rightwingdub

conorhal wrote: »

Well, it's up to a 25% max, but a minimum 10% deposit seems very sensible to me.
Firstly, it may force down prices as people need to save for a deposit, and secondly, it reassures lenders because the applicant has at least demonstrated an ability to save and manage money.
I just knew the that the 'end times were neigh' for the property market with the emergence of 100% mortgages, they stood out as a prime indicator that house prices had way exceeded affordability and pandered to those investing for a 'quick flip' sale or the types that clearly couldn't afford the property that they were looking at in the first place.
Frankly this move by the Bank of England seems like a sensible and positive regulatory move for the market and the consumer.

I wonder if own financial regulator Elderfield will do the same here, he threatened to do it about a month ago to banks who were still offering outrageously leniant mortgages to people at 6 times their salary.

Yes I agree its a very sensible move by the Bank of England.

the_syco

rightwingdub wrote: »

The prats have obviously never heard of making sacrifices in order to save for a deposit, a mate of mine and his girlfriend hardly went out for two years as they wanted to put together a 15% deposit on a house.

So? Does this mean that they would barely afford repayments? Or does this mean that once they get the house, they'll have loads of money to squander?

As someone has said, having 15% shows that you can save money, which, when paying mortgage, is important.