Mortgage advice

[noby]

Pick a number, and double it, it seems.

[paul_oshea]

hmmm just like here so. i thought it was stricter at home!

[noby]

It used to be, then it wasn't, and now it probably will again.

[beautifulrock]

It used to be, then it wasn't, and now it probably will again.

I agree Noby, bound to get stricter. In the UK most lenders have moved to a payment to income ratio calculation as a measure of what they will lend to you rather than the old salary by 3 or 3.5 or whatever number worked for them.

[Macy]

I agree Noby, bound to get stricter. In the UK most lenders have moved to a payment to income ratio calculation as a measure of what they will lend to you rather than the old salary by 3 or 3.5 or whatever number worked for them.

It's been payment to income ratio here for a while. It is supposed to take into account all loans, however, at the height of the boom there were blind eye's turned to other loans (one of them even said to us it was unfortunate that our credit union subs appeared on our payslips!).

[paul_oshea]

well they are still doing both over here, one is sorta done after the other, when i went to the banks it was a clear case of salary x 4 or whatever, but when i checked out a few brokers it was NET Income to Payment ratio, that they worked off, so bonuses etc could be used if provided for the previous year. Basically assuming you had no other loans you could get all minus bills/food/travel which is a joke.

[OneRedArmy]

I would imagine the reason brokers in the UK now charge is because of the changes introduced under depolarisation.

Re loans amounts, has tightened up in the last 6 months and as someone has said is now generally based off an affordability rather than an income measure. Eg regardless of what you earn if you have learge car loans, credit card balances etc, you won't be able to borrow as much.

It is difficult for lenders to check if you are being honest and there's no doubt brokers in particular preyed upon this during the boom, but the ICB is collecting more and more info and moving more towards the UK model where credit searches turn up everything you've ever done and as arrears increase (which they are) banks have incentives to properly verify affordability.

[pete]

I started with EBS as I was already a member but they have gone downhill a lot & tracker rates uncompetitive. I wanted to change my mortgage with them & they want to change me a search fee when they already hold the deeds. Very unimpressed by their recent management & will soon.