FTB's and buying now..

Gangstabird

Just purchased I assume you are in the public sector then:D

toocan

Gangstabird wrote: »

So what will stop the banks lending again at silly multiples

I dont think thell start lending large sums of money again to people who cant afford it.

wymondham

Gangstabird wrote: »

The only problem I can see at the moment is job security.

If you work for the 'guvvament' you are ok, police, nhs,fire service, mp etc.

If you work anywhere else, you are taking rather a big risk in case you lose your job.

not so sure, police are being laid off around here, as are nurses......

wymondham

toocan wrote: »

I dont think thell start lending large sums of money again to people who cant afford it again. ever.

So would this not keep prices down, keeping more people who have bought now/recently in negative equity?

toocan

wymondham wrote: »

So would this not keep prices down, keeping more people who have bought now/recently in negative equity?

not sure what you mean do you mean keep house prices down?
I think the facts speak for themselves. banks have seen huge profit loss they are business's and arnt going to repeat the mistakes of overlending and giving credit to those who cannot afford it.

wymondham

toocan wrote: »

not sure what you mean do you mean keep house prices down?
I think the facts speak for themselves. banks have seen huge profit loss they are business's and arnt going to repeat the mistakes of overlending and giving credit to anyhow.

As I understand it (and please anyone come in and correct me!!!)
If banks no longer lend as they have been, then this will limit how high prices go - the threshold in effect goes down. Those who have purchased at the recent high prices then risk being stranded beyond the new threshold banks are willing to lend to new buyers if they wish to sell.....

lostinrates

Jennifer_Jane wrote: »

I did the right things (£20000 deposit on £80000 house and I think I was earning about £16000 a month). I needed somewhere to live and it had to be my own place. In retrospect I wish I had bought cheaper, 2 bed terrace rather than something built in the 70's and 3-beds, but there you are.


Jen

But thats the point most people in the recent economic climate have NOT been able to buy at that level of afforability. If they were then what you did would still be great!

toocan

wymondham wrote: »

As I understand it (and please anyone come in and correct me!!!)
If banks no longer lend as they have been, then this will limit how high prices go - the threshold in effect goes down. .

No supply (people not being leant or having money) = No Demand ( no one is buying) which means house prices will naturally fall to the point that people can access.

wymondham wrote: »

Those who have purchased at the recent high prices then risk being stranded beyond the new finances banks are willing to lend...

yes if they borrowed at high multiples with the increase in the cost of living they ae stretched beyonds there means hence the increase in reposetions. Negity equity doesnt matter unless your selling as thats when your accessing your equity which unfortunately for some because of increased living cost they have too

Either way this is reducing house prices and leaves us FTB in a strong position to not only afford already reduced propertys that were previously out of reach but to also negotiate further discount based on the falling market.

in short i think for a ftb to buy now is an idiot is flawed to a certain extent. your point about having a good stable job however is very relevant

wymondham

toocan wrote: »

in short i think for a ftb to buy now is an idiot is flawed to a certain extent. your point about having a good stable job however is very relevant

I don't recall saying anyone is an idiot. I do try to be polite!

It might be quite a while before people who have max'ed out and recently purchased can sell if this whole scenario plays out...

Chris2685

I think one thing to remember about people buying now is that banks are only lending to people who they think are a 'good bet'. This means those people are much less likely to go into negative equity, or default on their payments, or need repossessing.