Getting a Mortgage from a Lender
In the News
I have seen on the news how people are struggling to own their own homes. I also had a conversation with my family yesterday. I’m lucky my mortgage is nearly completed but I feel for those people. Why do lenders only take into account regular earnings? Today it’s hard to find jobs that are not contract, zero, temporary etc or more than minimum wage even for graduates. My niece and nephew will have a hard time. Also if people are affording a certain amount of rent why does not that count as an affordable mortgage payment? I heard they don’t consider that. Do you think it’s unfair and needs changing according to modern life? What’s the point of building houses when not many can actually afford one?
The issue due to a high level of immigration we have a lot more people looking for houses than actually available so its all about supply and demand. Many people are priced out of housing nowadays because there are probably 3 people/families for every 1 house available etc. Statistics from 2020 show there was about 280 people per square kilometre in the UK compared to 330 in Japan but our level of immigration has been huge in the last 4 years plus the United Kingdom includes Scotland which has a low population density due to much of the land not really being ideal for habitation. England itself is well above the population density of Japan and that is why there is a housing shortage. We will need to rethink housing in the UK with much smaller homes like Japan, smaller cars and trying to prevent people travelling as much i.e. local shops like Japan. We need to adapt to our new environment. We also need food security so we need to grow and produce more of our own food so more land needs to be dedicated to agriculture. Crops are failing around the world due to global warming and we cannot rely on imports for both environmental and economic reasons. We shouldn't be importing food from Africa or Asia when many people are starving there.
The problem is that they want a deposit. Given the price of houses and the amount they want a deposit can be £10,000 minimum. That is part of the problem. People struggle to save that kind of money. Yes they can afford the monthly mortgage payment but not the deposit. They only take regular earnings into account because they need to know you can definitely pay your mortgage every month. I understand them taking regular income into account. I do think a smaller deposit should be looked into. The other problem is the price of houses. Some places are cheaper than others and you get more for your money.
I’ve just read this and remembered this chat.
Minimum purchase price £100,001, Maximum purchase price of £500,000
You will need a minimum £5,000 deposit and this mortgage product is a 5 year fixed rate mortgage
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