A first-time buyer's story

PasturesNew

They are a couple. Aged 27 in what sound like decent jobs.

They've GOT the money, they're just spending it on the wrong things and have an unrealistic set of expectations.

You can't live like the people in TV land... you can't have everything.

£5 will only buy you £5 of goods. You can't buy £20 of goods with £5 and still have £10 left over ... that's in La La Land. If you buy a house, doubling what your rent would have been, the money has to come from somewhere.

I'd love to see their SOA!

barnaby-bear

grebbo wrote: »

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.

Thing is this must be the extreme of stupidity and bad financial practice and that's their case study... if these people are just complaining about the pinch but not actually having anything bad happen (and they are on repayment rather than IO) it makes you think that perhaps a lot of people are ok...

bubblesmoney

quite a few people want to have their cake and eat it too. have holidays, spend on weekends, eat out instead of taking lunch from home, spend on fancy designer clothes etc etc and buy a house plus have spending money. too bad money doesnt grow on trees. it is like rotating money on credit cards on zero percent interest, at some point the system has to give and you have to pay for what you buy. there is no such thing as a free lunch except for the free loaders the govt keeps feeding every month, while the rest of us bums slog for a living.

lisal0u

SquatNow wrote: »

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!!!)

We were offered a 97% LTV mortgage fixed at 6.14% for 5 years with the Halifax. But we are only borrowing 2x our combined salary! Im glad we fixed it when we did because now its 7.44%!!

CFC

It never fails to amaze me when people seem to believe that the world owes them everything. Even an average terraced (for my expensive city area) 150k house is beyond me, I bought an ex LA house at a great deal less money than that, because that was what I could afford.

I cut my coat according to my cloth. Obviously I am just showing my age and am out of touch with what my expectations should be!!!

carolt

This one amazed me too. But I supposed that being 27, they're too young to remember the last crash at all, and part of the generation that thinks mortgaging yourself up to the hilt for a173K for a manky 1 bed flat quite normal.

What's stopped me buying lots of overpriced hovels over the last 10 years is that I'm old enough to quite clearly remember when they cost 2p and people couldn't give them away. But for those without this memory to guide them, and the idea gleaned over 10 years of property !!!!!! shows that 'house prices only ever go up' and if you don't buy soon, you'll have 'missed the boat', it may not have seemed so obvious.

So personally, I don't feel able to have a good laugh at their expense, though I couldn't help the sharp intake of breath when I first read this....

BTL merchants now - that's another story. Quite happy to split my sides laughing when they go down the pan.... :rolleyes:

HouseBuyer_2

I can't believe the cheek of that couple. (and I'm around that age too)

"we've just spent 5k on our wedding but we need a 100% mortgage." NEWSFLASH, could have saved the 5k for the house deposit instead.

"we need a holiday once a year"
NEWSFLASH, no you don't. lots of people survived without jetting off once a year

They need a big reality check.

ruggedtoast

Someone I know and his partner bought at the peak a year ago, some one bed flat, and now want to move. All the equity theyve put in has gone and they cant sell for the price they need to move, let alone trade up.

Theyre being really irrational about it and keep insisting that their flat isnt worth any less than it was - just that the price has gone down due to other people chickening out and lowering their prices (yeah , I know - but theyre really upset so I didnt say anything) .

Theyre convinced that its the fault of the mortgage brokers that they wont lend FTBs enough money to buy their flat not that their flat is too expensive. Theyre really in the denial stage of Kubler-Ross and its quite alarming to see educated rational people so lacking in perspective of the situation theyve got themselves in.

Basically thousands of pounds they put in to their property last year has been wiped out and they stand little chance of saving it back due to the size of their mortgage. They need to move and they cant, nor will be able to in the foreseeable future.

Loose_Cannon

I'm 27. I've just been a FTB. Five years of scrimping, saving, investing and self-denial by both me and my parents yielded me a very substantial deposit. I shopped around hard for a mortgage and got a fixed rate of 5.7% for five years in March, which, in combination with some hard negotiation over the house price, leaves me with repayments I can comfortably meet. Sure, I have a job with a better-than-average salary, which definitely helps, but the key is not spending what I haven't earned. Like HouseBuyer said, this pair need a serious reality check.

The Beeb seem to have gone and found a couple of dreamers who were prepared to whinge for the nation's amusement. They should have interviewed me

sympatex

Ruggedtoast, but do they "have" to move, unaffordable/breakup/job location change. If it was something like their commute became longer or simply don't like the area, surely they are 'aspirational' movers in which case they are going to have to sit tight! I'm a FTB, same age as loose cannon, been saving same amount of time too, infact i saved my student loan for a deposit also(which i'm promptly paying back incredibly slowly and will be student loan debt free when i'm 50!) It seem's we're stuck in the period off high costs for loans and high house prices (hang over from cheap money, doh). I want to buy at the beginning of next year with my gf as it's 'that time' for us and can no longer stay at home (Boohoo). I have no doubt that house prices will continue to depreciate which is something i accept but hopefully we can plan for the future as best we can, try to get as smaller mortgage as possible, mix in a few overpayments, and select a mortgage to run over 3-5 years and fingers crossed it won't be so bad in 2014!! by which time i'll be halfway dead.