Nothing new. I went for my first mortgage back in '97 and the adviser told me to bullsh*t about my salary. My next encounter was last summer, and again I was advised to bullsh*t about my salary so as to get a £120,000 mortgage ! Thankfully I seen sense, and went for one well within a budget I can support if the interest rates go through the roof (which at the mo, seems that way). I have mates who told porkies on advice from banks/building societies, and I dread to think what will happen when the inevitable comes around.
i brought a house 9 years ago round here for £30,000 now its all gone mad its now its £70,000 , no way i would have been able to buy a house n for that price now ,
its stupid and unsustainable as the shortage of first time buyers shrinks and the house price collapse will come round when the interest rates go up , STUPID !
Quite true in what you say Mighty, but with the massive increase in house prices, I can see why people lie and go for a bigger-then-they-can-afford mortgages. The area I live in, semi detached houses were going for 40k back in '98. I bought mine for 75k last summer and it's now worth around 110k, so for the life of me, I can't even comprehend how single or low income couples can afford these high prices today, hence the reason for a few porkies on the application.
What I really could do with is a fixed term mortgage, for the life of the loan. Then I wouldn't worry about the Bank of England knocking up the rates.
Money is cheap at the minute and & £100k can be bought for £316 per mont on interest only £505+ on capital and interest.
The problem comes if the interest rates rise a couple of percent and you money rises.
2% and your so called cheap finance now costs you £750 upwards, 5% and your on the road to shitsville.
DON'T BITE OFF MORE THAN YOU CAN CHEW!
If you are struggling to make your mortgage payments now, then your finances need addressing.
Fixed term mortgages are available, and to be fair I have been paying a little over the odds for the properties that I own and rent out. What I do have though is piece of mind in the knowledge that if the rates rise I can still afford to maintain my investments.