Anything which gets the prices of Starter Homes down to a point at which FTB can buy is surely a good thing?

These regulations will go a step closer to that ideal.

 

Dictatorship is what its called I believe... dont drink, dont spend, dont let your kids eat sweets, do this do that..

We work hard for our money it should be our choice on how we spend it, I have a regular payment to two charities I choose then the government decides its going to give to charities I dont want to support and bail out banks I wouldnt buy shares in personally because of the way they run their businesses....

But back to the original point... Lending went stupid over that last 10 years, I was a bank manager and I left because the banks policy is to lend lend lend to people it knows would never be able to pay the money back.. wheres the sense in that?

Young people starting out these days have no chance of getting a mortgage, and if the lending criteria came down to 3 x the value of wages would the house prices come down retrospect?? And is that fair to the pensioners who have no mortgage but their houses are their savings?

Country is a mess.. and one person to blame

 

The thing is nothing is being done with self certified mortgages, then capping borrowing to 3x income is still not going to prevent irresponsible lending since people can say they earn 70K instead of 20k to get their mortgage.

 

It wasn't maths, it was a hastily typed post and figures plucked from thin air.

 

I always thought you needed to show 3 recent payslips?

I believe that the Mortgage Brokers were at fault and were corrupt to put it bluntly.

 

I have heard that these payslips were sometimes "created" by some less than savory brokers.

 

A Self-cert mortgage is where you confirm your income without the need for independent verification and are generally for self-employed people, those who have irregular earnings, or those whose income comes from a number of different sources.

Self-cert mortgages require the borrower or borrowers to state how much they earn on the mortgage application form. Although the borrower may not be asked to prove this, the lender could ask for business bank statements to check the gross income received. Those who already own a home may also be asked to supply mortgage statements.

 

not always my bank just looked at my account and I was pre-approved to about 10X my income
helps having a business account and a lump of equity to put down. Anyway this threads a non starter they're not going to limit lending to 3X

 

Have they actually stated any multiple? I haven't heard whether they have on the News?

Is it still to be worked out on 'affordability'?

 

most self cert mortgages were called "liar loans" in the mortgage broker industry

I think the clue is in the description somewhere!!!!

and all this talk of capping is bllox -- if money is to be made in the short term, the smart people in the finance industry will find a way of lending (initially to the financially savvy, then when they run out, any tom dick or harry)

the problem with the whole finance industry is that people make the mistake of believing it is fundamentally based on maths/equations/formulae and so is fundamentally rational-- only the deluded believe that

it’s run by Humans and is run on the basis of a combination of confidence and greed – simple, all the maths is used to create/justify this.