It's true - houses just aren't moving

mr.broderick

..Having said that dopester i do excuse your sharpness, it is a symptom of tension that the falls aren't quite happening as we all anticipated.

carolt

mircea wrote: »

Really? So how comes I have 90% LTV in my house, the mortgage value is 2 x multiple of combined income, we have good credit and yet we seem to struggle in getting a decent remortgage deal? Also how do you propose saving for a deposit? If we rent, with one child, we would be looking at paying around £700/month in rent. Our mortgage monthly payment (capital + interest) is £850. I doubt that the extra £150/month could get you a very large deposit! The house prices are a bit higher then they should be, but in my opinion the problem is the wages. In this country wages are too low! How is anybody meant to be saving is beyond my understanding.

:T Couldn't agree more! Time for big pay rises all round! Excellent!

That wouldn't have any knock on effects on the economy, would it mircea?

Like a teensy bit of inflation?

Just wondering......

Pobby

Like you moanymoany, I am keeping an eye out for properties at Wrinkly Bay. We are not going to do anything yet for 5 years and hoping that in that time there might be a bit more stability in the market. But who knows. Who could have predicted that house prices have done what they have yoy. So it`s anyones guess when the market is going to bottom.

One thing for certain, I would not like to be moving just now!

mircea

LittleMissAspie wrote: »

My boyfriend and I are managing it. We live in an expensive part of the country (Cambridge) and earn under 2x average wage between us (47k total). Yet we'll end up with 25k savings in 2 year's time.

Wages are not too low, as you said in a previous post. House prices are too high - they are out of kilter with everything else.

LOL - you earn far in excess of what most people do - £25k per annum taken as an average is ridiculous - the people earning millions are putting the average up but this bears no resemblance to reality. I would say the average is around £15 - 16k per annum.

mircea

!!!!!!? wrote: »

I don't believe I would struggle at all to find a mortgage at 3.5x my salary with me putting up a 10% deposit. I might certainly struggle to get a ludicrously cheap one - given that interest rates are currently 5% I'd expect SVRs to start at anything from 1.5% above that, as is traditional. Even then, 6.5%-7% is a very reasonable interest rate provided I'm not actually borrowing a huge multiple of my wages.
Ponying up a deposit proves a number of things. Firstly that you've actually got enough financial competence to manage your existing income and put some money aside. Secondly that you're insulated a little bit from negative equity. Thirdly, that the bank has some insulation from negative equity should repossession be necessary. Fourthly, that you actually have a financial stake in the endeavour yourself and aren't doing the whole thing with someone else's money.
If you can't see why the banks really shouldn't be giving out huge mortgages with no deposit it's no wonder that the result of sane lending practices is hitting you as a bit of shock.
In fact, when prices hit that level I'll be putting my money where my mouth is as I presently have about 3 years salary worth of savings ... and I earn above average. Hopefully the bank won't be called upon to take any risk at all - I'll be assuming 100% and reaping the benefits of not being milked for compounded interest over two decades. But no way am I going to buy into the market until the price of the place I'm buying is realistic.

You posting on a public forum only to boast about the size of your savings???lol - that shows two things: 1. You are not very clever if you share this kind of information in such a public place 2. You are very sad if you need to boast about your savings. lol
As far as your arguments for a deposit are concerned, I am afraid you have not convinced me; a deposit as proof of financial competence? lol Get real.

mircea

carolt wrote: »

:T Couldn't agree more! Time for big pay rises all round! Excellent!

That wouldn't have any knock on effects on the economy, would it mircea?

Like a teensy bit of inflation?

Just wondering......

I was referring to the well known fact that living standards are much higher elsewhere in Europe than in UK, ie they have lots more money left after paying for the basics. Of course just raising everyone's wages would bring inflation and I wasn't suggesting such a simplistic and stupid thing, I was simply stating an opinion but if you are going to belittle everything I say like that ... oh hang on, aren't you the woman who is famous on this forum for her bile and for belittleing everybody, so sorry I will stop now I thought I was replying to a normal person. lol

WTF?_2

mircea wrote: »

You posting on a public forum only to boast about the size of your savings???lol - that shows two things: 1. You are not very clever if you share this kind of information in such a public place 2. You are very sad if you need to boast about your savings. lol

Actually I was replying to your claim that I would have trouble getting a 3.5x salary 90% LTV mortgage. I don't believe that there is much of an issue for such mortgages.

I went on the add a litle personal info to back up my assertion that 3.5x salary is the place where FTB houses should be before they become worth buying again. I'll be putting my own money where my mouth is when houses hit that 3.5x average salary level. The bank hopefully won't even need to be involved.

As for disclosing info, I'm pretty relaxed that the world knows that '!!!!!!?' has savings of 3x his annual salary :rolleyes:

As far as your arguments for a deposit are concerned, I am afraid you have not convinced me; a deposit as proof of financial competence? lol Get real.

If you can't see the stupidity of taking on a huge mortgage with no deposit (or lending it if you are a bank) even at this stage then there's probably little more that I can do to convince you.

carolt

mircea wrote: »

I was referring to the well known fact that living standards are much higher elsewhere in Europe than in UK, ie they have lots more money left after paying for the basics. Of course just raising everyone's wages would bring inflation and I wasn't suggesting such a simplistic and stupid thing, I was simply stating an opinion but if you are going to belittle everything I say like that ... oh hang on, aren't you the woman who is famous on this forum for her bile and for belittleing everybody, so sorry I will stop now I thought I was replying to a normal person. lol

Don't think I'm 'famous' for anything, actually! But if you don't wish your ideas to be made fun of, post what you mean instead of nonsense, as you posted originally.

The reason countries like Germany, say, have greater disposable income is because housing costs are cheaper. That's it. I'm not aware of other bills being substantially cheaper; if you have proof of this, please post it here, rather than making random assertions.

It seems a whole lot easier to just let housing costs return to normal levels, as they are doing, than attempt to raise all wages whilst simultaneously keeping prices level and inflation down.

If you can suggest a way of doing this, I would be more than happy, and I suggest you stand for parliament immediately, as our country (not to say the world) clearly needs great thinkers like you.

So how do you suggest we go about it?

mircea

!!!!!!? wrote: »

If you can't see the stupidity of taking on a huge mortgage with no deposit (or lending it if you are a bank) even at this stage then there's probably little more that I can do to convince you.

Nope can't see the "stupidity" at all. Are you telling me that the cleaner at the Rover factory who's inherited 10k from her grandmother is a smaller risk to a lender because she is putting her 10k as a deposit than let's say a heart surgeon who wants a 100% mortgage? You lot on this board are so horse blinkered by your own righteousness of 3.5 x salary deposit blah blah blah you can't even see when people are talking about side issues and you just keep on and on about this blah blah. I am really bored now.

dopester

mircea wrote: »

Nope can't see the "stupidity" at all. Are you telling me that the cleaner at the Rover factory who's inherited 10k from her grandmother is a smaller risk to a lender because she is putting her 10k as a deposit than let's say a heart surgeon who wants a 100% mortgage? You lot on this board are so horse blinkered by your own righteousness of 3.5 x salary deposit blah blah blah you can't even see when people are talking about side issues and you just keep on and on about this blah blah. I am really bored now.

Oh please... the army of doctors and surgeons flush with cash are not going to save this market.

New doctors are crippled with debts of around £37,000 after five years of study and I can't see NHS being able to continue high rates of pay for many public sector workers... including £100K+ head-teachers.

Junior doctors are already being squeezed for £5K. (July 2008)

Claire Capshaw, UCL final year medical student, added: ‘I’m very upset.

‘I’m graduating on £40,000 of debt. The starting pay for a doctor is £20,000 a year basic.