What were the lending rules pre 2008 financial crash for a mortgage

Ray Palmer

iColdFusion wrote: »

I wouldn't be too jealous, most people that got those crazy mortgages during the boom vastly overpaid for houses and are probably only now getting out of negative equity.

Saddens me a bit how quickly everyone has forgotten how crap the post 2008 years were; mass emigration of young people and graduates, spike in suicides due to massive debts, massive mental health issues when people lost hope in the future, more taxes, cutbacks on public services, they really were dark days

On topic, people buying new cars with their 110% mortgages was all the rage back in the day, shur you couldn't be parking some 4 year old car in front of your new house could you :rolleyes:

Everyone I know who went through negative equity is very happy now. The people their own age that didn't buy got stuck renting. Rents were low for a little bit but ultimately went up and cost more long term. People have aged out of mortgages and now can never buy.

There were all these people saying they would wait for a crash and buy cheap. Didn't work out because they couldn't get any money. There was also less to buy as people didn't want to sell at low prices.

As for easy money from the banks, the broker promosed a huge amount but the banks wouldn't lend what he said when we progressed. You had to lie on your application to get the crazy money. It is why I always felt the public had a lot more responsibility than the public acknowledge. I had a decent job but friends were worker less paying jobs were getting bigger mortgages. They also were using further out to get more space for their money. Ended with ever increasing commute times. They seem surprised that traffic got worse and fuel prices went up.

Flinty997

Lot of truth in all of that Ray.

Time is a great healer when it comes to negative equity.

JimmyVik

Ray Palmer wrote: »

Everyone I know who went through negative equity is very happy now. The people their own age that didn't buy got stuck renting. Rents were low for a little bit but ultimately went up and cost more long term. People have aged out of mortgages and now can never buy.

There were all these people saying they would wait for a crash and buy cheap. Didn't work out because they couldn't get any money. There was also less to buy as people didn't want to sell at low prices.

As for easy money from the banks, the broker promosed a huge amount but the banks wouldn't lend what he said when we progressed. You had to lie on your application to get the crazy money. It is why I always felt the public had a lot more responsibility than the public acknowledge. I had a decent job but friends were worker less paying jobs were getting bigger mortgages. They also were using further out to get more space for their money. Ended with ever increasing commute times. They seem surprised that traffic got worse and fuel prices went up.

I remember I was one of them waiting for the crash. Still am
Then the crash happened and i was shouting about how i was lucky to escape and sure I was living in Donnybrook for a quarter what I would have been paying for a mortgage.
Then as the years went on, rents became not so cheap and that bliss fell apart too.
So then here I am able to get a max of about 15 - 18 years on a mortgage if I needed a mortgage. Time is always your enemy and waiting for a crash wastes an awful lot of that.
How many people have been waiting since their mid to late 30s for another crash? They might be in for a shock when they approach the banks at the age they are now.

Nijmegen

JimmyVik wrote: »

I remember I was one of them waiting for the crash. Still am
Then the crash happened and i was shouting about how i was lucky to escape and sure I was living in Donnybrook for a quarter what I would have been paying for a mortgage.
Then as the years went on, rents became not so cheap and that bliss fell apart too.
So then here I am able to get a max of about 15 - 18 years on a mortgage if I needed a mortgage. Time is always your enemy and waiting for a crash wastes an awful lot of that.
How many people have been waiting since their mid to late 30s for another crash? They might be in for a shock when they approach the banks at the age they are now.

Go read the property market thread, back to the start of the pandemic and also before it when there were folks there apparently with cash in their hands but not prepared to jump. Trying to time the market is very difficult. Constantly cat calling and saying it'll fall over any time now is pointless - you'll be right eventually, but how eventually... Are you buying an investment asset or are you buying somewhere to live that you'll eventually own outright to fund whatever in retirement or similar.

Darc19

I'd agree that you should not put too much pity on those that bought between 2005-2008 as most of them had a tracker mortgage.

They also had very good tax relief on mortgage interest that was worth tens of thousands over the years it was available.


I calculated previously that a 1% tracker was worth about 25% of the price paid. Add in the TRS and they didn't do too badly overall.

It's those that didn't take a tracker that suffered