How to Stop the Drop in Home Values?

Herr-Berbunch · 10-14-11, 10:40 AM

In this country you didn't used to be able to get a mortgage for more than (IIRC) two-and-a-half times your annual salary as a couple, or three times as an individual.

So if I earnt £25k (which I did years ago, but don't now) I could've got a mortgage for £75k on my own.

Then came along self certification (under Labour for those interested!) and if I saw a house for £130k all I had to do was pretend to make £44k. As long as I could afford the initial repayments they offered - I was in a nice new abode worth almost double what I could've got a few years previously.

Then the interest rates would rise, other bills would rise, and hey-ho, I'd expect someone to come and help me out. That'd be you, the taxpayer! Why should my family and I lose out on this lovely home because somebody made me lie on a mortgage application form? Oooh, you've dropped interest rates, how kind, thank you banks. Sorry savers.

The above is all ficticious, I've never owned a house, or had a desire to, but I just think that those that lied should get their comeuppance!

10-14-11, 10:40 AM	#8
Herr-Berbunch Kaiser Bill's batman Join Date: May 2010 Location: AN72 Posts: 13,203 Downloads: 76 Uploads: 0	Herr-B's rant of the day! In this country you didn't used to be able to get a mortgage for more than (IIRC) two-and-a-half times your annual salary as a couple, or three times as an individual. So if I earnt £25k (which I did years ago, but don't now) I could've got a mortgage for £75k on my own. Then came along self certification (under Labour for those interested!) and if I saw a house for £130k all I had to do was pretend to make £44k. As long as I could afford the initial repayments they offered - I was in a nice new abode worth almost double what I could've got a few years previously. Then the interest rates would rise, other bills would rise, and hey-ho, I'd expect someone to come and help me out. That'd be you, the taxpayer! Why should my family and I lose out on this lovely home because somebody made me lie on a mortgage application form? Oooh, you've dropped interest rates, how kind, thank you banks. Sorry savers. The above is all ficticious, I've never owned a house, or had a desire to, but I just think that those that lied should get their comeuppance! __________________