Price increases is it wise?

[Iron Giant]

I feel sorry for the younger generation who will struggle
My son is a self employed plumber on good money and the same with his missus who is a sparky yet they are living here as they need such a big deposit
My house is paid for next year and has appreciated over 250k since we have lived here for 22 years and the flat I had before made me 23k in a year and I can pay my mortgage with a day and a bit work each month
No first time buyer is gonna be able to get into this situation nowadays

Worse down your way mate or a lot of places south of where I live with houses prices been so high, the new build houses around here are obviously higher priced but if you can get an old house as we did then you're lucky, I honestly don't know how some people afford these new build houses must have 40 year mortgages to meet the affordability criteria on the monthly payments
Very sad when people want to get on with their lives and have the security of owning their own home and the houses prices just don't make it possible for them

 

[scottish cleaning service]

Worse down your way mate or a lot of places south of where I live with houses prices been so high, the new build houses around here are obviously higher priced but if you can get an old house as we did then you're lucky, I honestly don't know how some people afford these new build houses must have 40 year mortgages to meet the affordability criteria on the monthly payments
Very sad when people want to get on with their lives and have the security of owning their own home and the houses prices just don't make it possible for them

Aye, that's the reason I am fitting new windows next month in my house. No point putting the money in the bank, best to put it into your home. At least one won't lose it and makes it warmer. ?

 

[Iron Giant]

Aye, that's the reason I am fitting new windows next month in my house. No point putting the money in the bank, best to put it into your home. At least one won't lose it and makes it warmer. ?

Always makes sense to invest and improve one's home, we have plenty to do in our own house we figured one last move when covid hit and didn't see any holidays in sight for a long time just got spend £1,000's on this house to get it updated as everything is up 20 years old and beyond.

 

[AllGleam]

It's the effect on trying to get on and live a life with family and kids that's the saddest thing, if you can't get your own place you can't even think of starting a family. Life shouldn't be like this, food, water, heat and a roof over your head are necessities, not luxury items.

My rent is £800 per month, apparently I can't afford to buy a house so I haven't missed a single rent payment, council tax bill, gas / electric bill, water bill, tv license, van insurance, road tax, life insurance, mobile phone bill, in over 5 years since I started living here, I have zero credit cards and zero in loans but I'm not considered capable of paying a mortgage the equivalent of £800 per month? it's all wrong.

Hopefully interest rates will rocket and stay up which will put a lid on house price growth and sort some of the problems.

Vicious circle you have to have a good credit score to get mortgage, you have to get credit to make it look better and better by spending on credit and paying it back which then affects your score for taking credit out but even if you dont have loans credit cards etc but run a household with no missed payments they still won't let you have one its wrong it needs a new system shaping

 

[Chris34]

Vicious circle you have to have a good credit score to get mortgage, you have to get credit to make it look better and better by spending on credit and paying it back which then affects your score for taking credit out but even if you dont have loans credit cards etc but run a household with no missed payments they still won't let you have one its wrong it needs a new system shaping

Yeah, it's a stupid way of evaluating affordability. For me having a credit card means you can't afford the things you're using it for... so to be told to go and get some credit cards to show my ability to manage money just doesn't make any sense. I can't see why they just can't go off your rent payments alone with other bills... a monthly credit card payment is nothing compared to rent and bill payments.

 

[adamangler]

It's the effect on trying to get on and live a life with family and kids that's the saddest thing, if you can't get your own place you can't even think of starting a family. Life shouldn't be like this, food, water, heat and a roof over your head are necessities, not luxury items.

My rent is £800 per month, apparently I can't afford to buy a house so I haven't missed a single rent payment, council tax bill, gas / electric bill, water bill, tv license, van insurance, road tax, life insurance, mobile phone bill, in over 5 years since I started living here, I have zero credit cards and zero in loans but I'm not considered capable of paying a mortgage the equivalent of £800 per month? it's all wrong.

Hopefully interest rates will rocket and stay up which will put a lid on house price growth and sort some of the problems.

I struggled for years to get a mortgage with having a ltd co, finally got one last year i pay £575 per month, 130k mortgage with 20k deposit... Luckily houses are cheaper up north.

 

[kevinc250]

Yeah, it's a stupid way of evaluating affordability. For me having a credit card means you can't afford the things you're using it for... so to be told to go and get some credit cards to show my ability to manage money just doesn't make any sense. I can't see why they just can't go off your rent payments alone with other bills... a monthly credit card payment is nothing compared to rent and bill payments.

when we applied for a mortgage to buy our house the adviser ask how much we owed, we uummdd and aaagghhh think it was somewhere around £3.50 to the milkman, that was a while ago and times have changed, it seems now you have to have a credit score, mine is probably as bad a chris 34's as we pay bills on time. we have cards but never use them so whilst it seems we are the best payers we are deemed as the unknown quantity, and yet people up to their eyes in credit cards and juggling payments here and there are deemed a better risk? i just can't understand it, i really can't.
i really feel for those getting on the ladder but, my parents said the same many years ago i think its one of those ongoing things that houses get more expensive compared to those who bought for what seems now a pittance but, back then it was a struggle to make ends meet as it is now.

 

[Jaygti]

It’s not rocket science.
Get a credit card, and pay it off at the end of the month.

 

[AllGleam]

It’s not rocket science.
Get a credit card, and pay it off at the end of the month.

They say get credit card spend 100 a month pay it straight back and your score flys up

 

[Pjj]

I have a very good credit score but since paying off the mortgage a couple of years ago it has dropped dramatically, I have credit cards and use them and pay them off in full every month , I don’t owe anything but my credit rating is dropping, crazy but there you go !!!!!

 

[AllGleam]

Its very tough at mo i cant even get mortgage and probably won't at 40

 

[Dave B]

No such thing as a credit score
Ask Martin lewis
It’s a rough guide and every company uses different guidelines

 

[Pjj]

No such thing as a credit score
Ask Martin lewis
It’s a rough guide and every company uses different guidelines

There is and there are loads of different ones every bank and building society has there own set of criteria and you will be different on them all , I bank with lloyds and my credit rating has dropped dramatically the bank said it’s beacause I don’t have a mortgage anymore. Hears an example below

 

[Cghwindowcleaning]

There is a credit score but more importantly there is an affordability test you have to pass.
Experian is a good place to check your credit score it will tell you what is effecting you negatively and positively and then you can work on what you've got to improve on.

 

[Iron Giant]

my parents said the same many years ago i think its one of those ongoing things that houses get more expensive compared to those who bought for what seems now a pittance

Compared to down south houses up north are a pittance..

 

[Chris34]

There is a credit score but more importantly there is an affordability test you have to pass.
Experian is a good place to check your credit score it will tell you what is effecting you negatively and positively and then you can work on what you've got to improve on.

It's just stupid though the whole principle of it, it's basically playing the system to make it work for you. I fully understand how it works... but it's totally bonkers.

If you take my example, if someone has been paying rent for 5 years without a missed payment then that should be enough to prove that that person can afford a mortgage for the same monthly cost.

PJJ's example just shows truly how bonkers it is, pay off your mortgage and your credit score drops, it needs a total rethink.

 

[AllGleam]

It's just stupid though the whole principle of it, it's basically playing the system to make it work for you. I fully understand how it works... but it's totally bonkers.

If you take my example, if someone has been paying rent for 5 years without a missed payment then that should be enough to prove that that person can afford a mortgage for the same monthly cost.

PJJ's example just shows truly how bonkers it is, pay off your mortgage and your credit score drops, it needs a total rethink.

Most of the time rent is more than monthly mortgage too systems upside down

 

[ched999uk]

If I remember correctly the 'affordability' checks were brought in after the last financial crash and the bank bailouts i.e. too many iffy loans/mortgages being issued then gov picking up the bill for the bad debts.
It was all about protecting the gov and tax payers!!!
They are about to change the rules on renting too by stopping no fault evictions and limiting rent increases - just as the mortgage rates are going up!!!!
Not sure who that's supposed to help?
It's all mad, I am so glad we managed to pay off our mortgage.

 

[scottish cleaning service]

If I remember correctly the 'affordability' checks were brought in after the last financial crash and the bank bailouts i.e. too many iffy loans/mortgages being issued then gov picking up the bill for the bad debts.
It was all about protecting the gov and tax payers!!!
They are about to change the rules on renting too by stopping no fault evictions and limiting rent increases - just as the mortgage rates are going up!!!!
Not sure who that's supposed to help?
It's all mad, I am so glad we managed to pay off our mortgage.

The rental game is over and many will probably sell.

 

[Part Timer]

The rules are the rules, many things in life don't make sense. Fight the system as much as you want, guess what, you'll lose.

 

[Chris34]

If I remember correctly the 'affordability' checks were brought in after the last financial crash and the bank bailouts i.e. too many iffy loans/mortgages being issued then gov picking up the bill for the bad debts.
It was all about protecting the gov and tax payers!!!
They are about to change the rules on renting too by stopping no fault evictions and limiting rent increases - just as the mortgage rates are going up!!!!
Not sure who that's supposed to help?
It's all mad, I am so glad we managed to pay off our mortgage.

Yeah before the financial credit crunch you could get a mortgage without proving your earnings if you were self employed. So you could say you earned £80k per year and they'd give you a mortgage with minimal background checks.

What they effectively did is they didn't actually deal with the problems, they just kicked the problems further down the road. They effectively borrowed money and put the country in more debt to prop up the debt ridden system, at the same time they slashed interest rates to zero. This stopped people losing their houses but it also stopped a much needed overdue correction in the market, it effectively allowed the market to recover and carry on from where it left off.

Now there is a problem with inflation so interest rates have to go up and that should effect the market. What I expect they will do however is prop up the market with some other juggling act and kick the latest problem further down the road again.