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Mortgage affordability test plan
http://x404.co.uk/forum/viewtopic.php?f=19&t=3491		 Page 1 of 1
Author:  pcernie [ Mon Oct 19, 2009 9:14 am ]
Post subject:  Mortgage affordability test plan
http://news.bbc.co.uk/1/hi/business/8313853.stm

I bet the old ways still hold true for some people - 'Ah, Mr Mandelson, you look like a trustworthy sort...' :lol: ;)
Author:  bobbdobbs [ Mon Oct 19, 2009 9:40 am ]
Post subject:  Re: Mortgage affordability test plan
only about 5 years too late :roll:
Horse has not only bolted but has been on a round the world cruise.
Author:  paulzolo [ Mon Oct 19, 2009 6:34 pm ]
Post subject:  Re: Mortgage affordability test plan
bobbdobbs wrote:
only about 5 years too late :roll:
Horse has not only bolted but has been on a round the world cruise.


And it’s sending post cards.
Author:  Amnesia10 [ Tue Oct 20, 2009 9:32 am ]
Post subject:  Re: Mortgage affordability test plan
Quote:
However, the FSA drew back from any ban on 100% mortgages, or any limit on loan-to-value levels. There was also no ban on loans over a certain multiple of borrowers' incomes.

I think that these omissions are a mistake. There should be a ban on any mortgage higher than 90% LTV. There should also be a ban on mortgages more than 3 times a single persons wage. That would stop the market being bid up out of the range of genuine house buyers.
Author:  pcernie [ Tue Oct 20, 2009 12:45 pm ]
Post subject:  Re: Mortgage affordability test plan
Amnesia10 wrote:
Quote:
However, the FSA drew back from any ban on 100% mortgages, or any limit on loan-to-value levels. There was also no ban on loans over a certain multiple of borrowers' incomes.

I think that these omissions are a mistake. There should be a ban on any mortgage higher than 90% LTV. There should also be a ban on mortgages more than 3 times a single persons wage. That would stop the market being bid up out of the range of genuine house buyers.


+1, you would have a better idea of how the market was doing realistically if nothing else, and helping to prevent what we've already seen happening again.
Author:  Amnesia10 [ Tue Oct 20, 2009 3:47 pm ]
Post subject:  Re: Mortgage affordability test plan
My reasoning was that many couples will want to have kids one day and so if the house price is based on two earners then it will mean that they are forced to work. With the social problems that comes with latch key kids. When I grew up there were few families where everyone was working. So kids always had a parent at home. If house prices were lower then a couple could easily afford to have one member of the family staying at home to bring up the kids.
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