A first-time buyer's story

obsessed_saver

http://news.bbc.co.uk/1/hi/business/7450384.stm

This interview just reeks of unrealistic expectations and financial decisions guided by feelings rather than doing the sums.

I had banked with the Halifax for years but they wanted a £40,000 deposit. How can anyone in our position save that?

If they can't think of saving £40k, how do they think they'll cope with having to pay a mortgage and paying off the property?

If I could go back we would rent somewhere for about £750 a month. Our mortgage is £1,300 a month, so we could have put money away until the credit crunch blows over.

Suddenly, reality bites.

The government gives no incentive for first-time buyers.

Why and how should the government help? Obviously tax money is meant to be used to help people onto the property ladder. :rolleyes:

dean_ham

obsessed_saver wrote: »

http://news.bbc.co.uk/1/hi/business/7450384.stm

This interview just reeks of unrealistic expectations and financial decisions guided by feelings rather than doing the sums.



If they can't think of saving £40k, how do they think they'll cope with having to pay a mortgage and paying off the property?



Suddenly, reality bites.



Why and how should the government help? Obviously tax money is meant to be used to help people onto the property ladder. :rolleyes:

Lets be honest £40k is alot of money to save. Im a 23 year old FTB. Ive been saving since 2003 and im at £32k saved. Luckily living with my parents have given me the chance of saving this. Otherwise it wouldnt be anywhere near that figure. But i dont know why that need a £40k deposit? What are they buying a £400,000 house!?!?!? surely they must be buying something in the region of £150k which means a £15k deposit.

The goverment hasnt help us FTB what so ever. Forget the b*****t shared ownership schemes etc etc, they are a waste of time. All it does is laden us with even more debt by keeping house prices high as they are affordable (or so people think)

The goverment doesnt help aswell when one minute they say no no no house prices will stagnate over the coming months, the economy is doing fine bla bla - then a week later THE HOUSING MINISTER is caught with a document saying that they are expecting a 5 to 10 % drop in prices by the end of the year.

I certainly wont be falling for this rubbish and will just sit here paitiently saving £1000 a month while i keep watching the houses and ecomomy fall into free fall.

SquatNow

Have added the bbc story link to the SlaveBoxes page rotator.

Trune

If they can't think of saving £40k, how do they think they'll cope with having to pay a mortgage and paying off the property?

stupid comment. Easily...
ive heard you can pay a mortgage off over 25+ years if you want to.

some people dont have 25 years to save thier deposit or they will be half way to dead without starting mortgage repayments.

get real.

Why and how should the government help? Obviously tax money is meant to be used to help people onto the property ladder. :rolleyes:

They pretty much control \ cause inflation and dictate how the country is run, so why shouldnt they?

pretty pointless post.

Bf109

Trune wrote: »

They pretty much control \ cause inflation and dictate how the country is run, so why shouldnt they?

pretty pointless post.

Why shouldnt the govenment then pay for my beer and fags also? how about a nice pedicure and a holiday to Thailand?

I rather think its your post thats pointless.

SquatNow

There are still far too many young people being told by their parents that buying a house is a good idea.

Their parents will have bought when interest rates were high and house prices were relatively cheap (compared to now) and then saw their payments become more affordable as interest rates dropped and wage inflation inflated their payment down to a pittance.

This will NOT be happening again.

We are now a net importer of energy instead of an importer and we don't have any major manufacturing. There is no way wages can spiral up like they did in the 80s as there are no jobs. Unemployment is at record levels but is being disguised with "incapacity benefits", "training scemes" and PAYING kids to stay at school for another 2 years. Lots of spare workers means wages are held down.

If you have debt you will have to work away living in poverty for the rest of your life until you repay it.

Premier_2

They were looking to buy a property up to £180k

As halifax currently offer up to 97% LTV (or 90% with no salary funded bank account with them), I guess the £40k deposit relates to lack of income multiple rather than LTV limit.

Now they've overstretched themselves (which explains why Halifax sets their income multiples where it does) the borrowers are moaning about the cost.

Btw, the £1300 per month payment includes about £225 per month paying back the loan - they did realise they'd have to pay it back one day didn't they? It's effectively like saving £225 per month on top of the rent they used to pay i.e. they should really be comparing £750 rent Vs £1075 interest.
If they hadn't stretched themselves so much they could have got a better interest rate

But these guys don't expect much do they?
A new home of their own, a £5k wedding deposit/part-payment, a holiday a least once a year, a new playsation...oh, and some disposable income at the end of the month too. My heart bleeds :rolleyes:

SquatNow

Premier wrote: »

As halifax currently offer up to 97% LTV (or 90% with no salary funded bank account with them), I guess the £40k deposit relates to lack of income multiple rather than LTV limit.

I'de love to see anyone actually get this rate. Actually, even 90% would be impressive. It will be upto 97% on a 1x salary mortgage!

I'm amazed banks can even advertise "upto 97%" since when shows advertise offers like that a certain %age/number of customers actually have to be able to get the deal, else it's false advertising!

It's like when PC World advertise their 10% off sale... they offer 10% off books as due to the number of different books they sell it makes up something like 30% of their entire product line. (Each book counts as one product line!!!)

Bf109

I just read this bit

We seem to have no disposable income...... have really wanted a PlayStation for six months but I cannot go out and buy one

Yup, reckon he needs the taxpayer bailing him out urgent! Cant afford a playstation! Oh the humanity!

SquatNow

Bf109 wrote: »

Yup, reckon he needs the taxpayer bailing him out urgent! Cant afford a playstation! Oh the humanity!

But surely he's legally ENTITLED to a playstaion under european law?

Human rights act?

grebbo

That article was one of the funniest things I've ever read.

I don't want to sound like an !!!!!!! but those people need to crash and burn.