The Future of Mortgage Loans


(Bethany Rose Huff Guelbert) #1

Hello!

I’m 19 years old and in a full time job at a financial advice firm and there’s so much opportunity in my role between now and the rest of my life and I don’t want to rent a house as its insanely expensive and I don’t have the salary to afford it, and I want to buy a house. The problem I’m coming across is that banks will only loan me 4.5x my annual salary meaning I need a 20K+ DEPOSIT which will take me years to save. As my now preferred banking app, and as you now have a banking license I’d really like to suggest that when you guys get round to mortgages and loans, please base the LTV (loan to value) and mortgage loan amount on how old someone is, their current salary and how much room they’ve got for increase in salary and how the re-payment period my start at 50 odd years on current salary, but that in 4 years time my salary could double and re-payment period becomes shorter and shorter.

It’s making my getting independence and gaining my own financial stability and independence extremely difficult and painful.

Thank you!


(Alan) #2

So much common sense there - and I guess in the absence of successive governments continuing failure to address the real issue of supply and demand (hence such inflated prices particularly in the South of Englandshire) it is high time there was some innovation from banks and building societies to develop products along the lines you have indicated.

I think Monzo have their hands full in the short term - but it would be great for some groundbreaking solutions to appear - once created, I’m sure many others would follow.


(Christopher J. Sladdin) #3

Some really interesting points which I’d definitely agree with, although you might want to take a look at this blog post by @Tom which suggests that mortgages aren’t going to be part of Monzo’s product offering in the long-term…


(Chris Brind) #4

Shame - I have a great mortgage combined current account deal which is preventing me from making Monzo my primary current account.

But I hate the provider (RBS One Account) and they haven’t updated their website (except for minor security updates) since about 2001!

2 0 0 1

An no app (or even mobile web support). I had to write my own iOS app which does crazy screen scraping just to save me having to login to be abomination manually.

So if no mortgage, how about a large (150k ish) overdraft? I would move it all over in a heartbeat!


(P Burrows) #5

This makes sense! I’ve been working my ass off for two years now to save a mortgage deposit and it’s infuriating that I even need to. A small deposit (like 2 or 3%) should be all I need. I pay rent on time every month and it seems to mean nothing??? I don’t really get why.

But :man_shrugging:t2: In February I’ll be done! Hopefully in the future a more logical system is in place for my nephews when they come to buy a house.


(Chris Brind) #6

So my situation changed. We’re moving in to my mum’s hold house, but still need a small mortgage. My employer is based in the US (DuckDuckGo) so banks are super-cautious about lending to folk if they are self employed or have a foreign employer. My current bank wouldn’t even let me move the mortgage over! (RBS One Account - it’s been terrible)

Anyway, I have made alternative arrangements with my mum and it’s all working, I’ll be mortgage free but have a couple of unsecured loans instead.

Annoying, but means I can move over to Monzo finally and dump RBS once and for all!


(Richard) #7

Self employed I understand - you need to be able to show good records that your income over a certain number of years (usually around 3) has been pretty stable.

As for being employed by a non UK company, can’t say I’ve had that experience? My employer is based in the US and RBS are more than happy to lend me a ridiculous sum of money (that I wouldn’t even dream of borrowing).


(Chris Brind) #8

Yeah, maybe it’s specifically a One Account thing.

My IFA also recommended Santander.