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Debate House Prices
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Mortgage approvals up again in July.
Comments
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"Restrictive rates on high LTV products are locking the majority of first time buyers out of the property market."
Thing is they're not really restrictive rates are they. So a fixed rate of 5.5% - 6% is restrictive by historical standards is it?
I think you'll probably find it's the high purchase price resulting in the rather large subsequent mortgage is the problem.0 -
whose they?
I own my house outright & don't want HPI
I share your way of thinking. I am "lucky" enough to own my own home, and i do not begrudge others having the same opportunity that I had.
It seems that some sad individuals kind of relish others facing more difficult prospects in the property market.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
shortchanged wrote: »"Restrictive rates on high LTV products are locking the majority of first time buyers out of the property market."
Thing is they're not really restrictive rates are they. So a fixed rate of 5.5% - 6% is restrictive by historical standards is it?
I think you'll probably find it's the high purchase price resulting in the rather large subsequent mortgage is the problem.
Well I'm surprised that FTB can get 95% LTV at Northern Rock or Lloyds at under 4%. I expect you have to be pretty 'clean' to get this.
But the 'clever' ones, are those that are still living at home (not yet married or shacked up). They earn 100 'units'. So can borrow 300 'units'. Let's be cautious and say 90% LTV at 4%. So he can buy a property at 335 units. Hence needs to stump up 35 units deposit. This person would be an idiot not to understand that he'll one day be looking at mortgage rates of 6% or more, so 6% on loan of 300 'units' would cost 18 units a year. Save 18 units for two years, and hey presto, there's the deposit.
The 'not so clever' ones are presumably renting. So probably 25 to 30 units of cost in rent alone. You can't save 18 units on top of that. By the time you have saved the 35 units, then the same house will be 10% higher in cost I expect.
Life is full of choices........0 -
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Graham_Devon wrote: »You, Sir, are a liar.
You must be.
Owning a house, and not wanting / seeing HPI as fantastic does not compute.
Mainly as someday I want to move up the ladder, which means I can get more house for my money & require a smaller mortgage. Every £1 my house increases, my prospective house increases by £2.0 -
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angrypirate wrote: »When you're children are struggling to get on the market because they are outbid by landlords maybe you'll feel differently. Its a sorry state when the average age of FTBs in a developed nation is 37.
I don;t think you understand, but JB has pointed out.
I'm looking to the future and covering for a time if my children find it hard to become owners.
I've secured property that can be used for them if necessary 20+ years ahead of when they will possibly need it.
Hands up who thinks property prices will be cheaper in 20+ years than from now?....................Nobody?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Loughton_Monkey wrote: »Well I'm surprised that FTB can get 95% LTV at Northern Rock or Lloyds at under 4%. I expect you have to be pretty 'clean' to get this.
But the 'clever' ones, are those that are still living at home (not yet married or shacked up). They earn 100 'units'. So can borrow 300 'units'. Let's be cautious and say 90% LTV at 4%. So he can buy a property at 335 units. Hence needs to stump up 35 units deposit. This person would be an idiot not to understand that he'll one day be looking at mortgage rates of 6% or more, so 6% on loan of 300 'units' would cost 18 units a year. Save 18 units for two years, and hey presto, there's the deposit.
The 'not so clever' ones are presumably renting. So probably 25 to 30 units of cost in rent alone. You can't save 18 units on top of that. By the time you have saved the 35 units, then the same house will be 10% higher in cost I expect.
Life is full of choices........
If I stayed at home rather than flatsharing in London (as I used to), I'd be on a train for 3 hours a day whilst paying extortionate rail fares and having to live with my parents.
Hardly "clever", that.0 -
HAMISH_MCTAVISH wrote: »Lenders granted 49,239 loans to buy homes, compared with 48,500 the previous month, up 3% year on year and the highest level in 14 months.
Slightly better, but nowhere near what is needed.
Lets see what the commentators are saying......
Yep. Mortgage rationing sure is helping the young. Not.
Anyway, how about the future.
By value, mortgage lending for new purchases is down from £5,900,000,000 to £5,000,000,000 (15%) year on year. Re-mortgaging is up quite substantially however by value.(link)0
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