How long is a mortgage and lending ratio

[craig12]

just wondered how long the young couples get to have a mortgage these days I heard it was 30 -40 years cos of the horrendous prices ,also whats the deposit now  , when I was buying it was a strict 10 % down , wage slips checked etc etc  2.5 joint income was all we could have as a loan

Edited November 26, 2018 by craig12

[choogling]

The joint income of a couple was also considered in the seventies, we put 20% down to reduce the costs but to do so worked my butt off for twelve months to raise the cash.The interest rate was about 15% at the time.

[Jeffrey Shaw]

On 11/26/2018 at 5:28 PM, craig12 said:

just wondered how long the young couples get to have a mortgage these days I heard it was 30 -40 years cos of the horrendous prices ,also whats the deposit now  , when I was buying it was a strict 10 % down , wage slips checked etc etc  2.5 joint income was all we could have as a loan

It entirely depends on the criteria used by the mortgage (lender).

Darlington Building society is now offering advances of up to SIX times earnings but says that it screens applicants rigorously to ensure affordability.

Very risky for both parties!

[craig12]

6 x earnings , glad im a silver stacker

[Cyclone]

Duration is upto the person taking out the mortgage and what they can afford, but longer mortgages have become available when in the past I get the impression they simply didn't exist.

[topflat29]

Before the introduction   of AST letting agreements in mid 1990s and before BTL mortgages came onto the market  , the  traditional  building societies  followed the rule  to  allow only   one mortgage  loan which had to be fully  paid off on reaching retirement age  at  65 years. 

 

I believe that Halifax Bank will now let  your  mortgage loan  run up  to 80 years age but many  other mortgage  lenders still want the mortgage loan paid off on reaching   65 years  age, when  the job ends  and  many  have to  live  off   their meager state  pension .

[Cyclone]

If you started at 20 though that would still allow for a 45 year mortgage!

[Jeffrey Shaw]

On 12/1/2018 at 12:11 AM, topflat29 said:

Before the introduction   of AST letting agreements in mid 1990s and before BTL mortgages came onto the market  , the  traditional  building societies  followed the rule  to  allow only   one mortgage  loan which had to be fully  paid off on reaching retirement age  at  65 years. 

 

I believe that Halifax Bank will now let  your  mortgage loan  run up  to 80 years age but many  other mortgage  lenders still want the mortgage loan paid off on reaching   65 years  age, when  the job ends  and  many  have to  live  off   their meager state  pension .

True; but there are 'retirement' mortgage advances available, in which the accruing interest can be 'rolled-up' rather than being paid.