To worry about falling house prices

[Ll81]

They say prices in central London have been falling for a while and this is rippling out to the rest of the country. Also lots of talk about raising interest rates and they could also be another downward pressure on prices along with lots of EU nationals leaving.

Anyone else worried that falling prices may mean many that have bought in the last few years maybe stuck in ne?

tbf for most people the issue isn’t the affordability but the ability to save for a decent deposit.

I’m not sure it’s that unusual. £2k on childcare, £750 on commuting, £1k on
Mortgage. Obviously I Already have a mortgage, but the rent on my house would be twice that.

I was just about to ask if you had kids cherry. childcare is another mortgage!

When I got my mortgage I earned £55k. I borrowed £230k (deposit from previous house which was easily bought in the boom
Years) still with commuting costs and rent I couldn’t have saved £1k a month

(No kids then obviously!)

And there’s the problem, you think you should be able to rent some amazing house whilst you save up to buy

You already have a mortgage, a sensible one!

I can’t imagine paying 1.3k a month for 30 years when earning 50k as per the pp helpful advice. That is scary!

My problem? I don’t think you’ve understood my posts. I’ve been a homeowner for 15 years. Do keep up.

No I do get it CherryCokeNotWinning, it’s hypothetical, I do wonder how you manage to earn 6 figs if that is true. You don’t seem very bright.

I don’t think you’d be a decent judge of that, tbf.

bloody hell your nice!

You’ve just repeated back what I said to you! Very original.

Samantha77hat

what banks are lending 6 x your salary?

I looked up income multiples recently, they were much lower than I had thought. Definitely not 5 or 5.5 joint salary - more like 3 joint or 4 higher plus 1 lower.

(Can't remember where I was looking - maybe a money website).

That is also subject to affordability tests as well. Obviously some lenders may lend more, or course - but I did not get the impression that 5 or 5.5 * joint was standard.

5x joint income is readily available

but that won’t enable to buy the 350k home as per your hypothetical suggestion.

Plus in the current market with interest rates likely to rise I think it would be foolish to max your borrowing.

sothatdidntwork

that was my understanding. I mentioned it before (unsure if on this thread) but a few of my friends were looking at moving (myself included). We all have 6 figure household incomes, not one of us were looking at borrowing more than 4x our income. In fact some were offered less than they were 5 yrs ago when they were earning less.

Interesting Samantha - is that through brokers or do you know of direct lenders who lend 5 * joint? I suppose it may also depend on ltv - lower ltv may mean lenders will lend a higher multiple?

We have a six figure income and perfect credit histories, the most we were offered was 4x income.

We got 3.5, 4 x single too.

Chienrouge wonder what we are doing wrong!

First Direct lend 4.75x combined income on any LTV product

Who lends 5x?

Are you really that pedantic?
4.75 is 5 isn't it, to 0dp

I wasn’t being pedantic. You said 5x salary is readily available. Then gave an example of one lender who lends 4.75x.
Anyway we’ve just been through the whole process and with a 6 figure income, excellent credit history and high deposit we were offered 4x salary. Which was fine for us as we have a high salary in a cheap area. Wouldn’t he so great in London, I wouldn’t have thought.