Todays events...Any FTBs feeling poor? I do

sympatex

After todays cut in interest rates which will undoubtedly find its way into savings rates tomorrow, loans sometime never, is any other FTB's feeling poor?

I've been saving for 4years since i left Uni, not in a position to buy a house, constantly rising unreachable unless i fancied taking huge risks or comitting fraud.

Finally last year i get into a position where i can purchase savings are pretty good, got the 10% deposit i've been told plus other money to cover fee's and furniture. have a browse and find i can get very little for my 4years of saving. House prices turn (for the better) and start tanking, so i hold off.

This year my savings earn 70% less than they did. Barred to the mortgage market by interest rates of 6.5% for moajority of 90% mortgages (that still exist) and local housing market stubbonly staying at 2006 prices. (there has been falls but for good properties no more than 10% off peak). I earn an average salary nationally and 3bed semis sell for 8x my salary.

Today with the rate cuts, confirmation of QE (has been happening for a while, see pound devalue vs foreign currencies) I just feel POOR. I am stuck, frozen out of what i want and being told to spend what i've just spent 4 yeas saving. What a waste of time!

/end rant.

ad44downey

It sucks. Irresponsible borrowers get rewarded and cautious savers get walloped

Entertainer

Just console yourself with the thought of all the money you're saving as prices continue to fall. £30,000 pays for alot of rent.

lostinrates

Actually I feel sick to the stomach today. I felt quite chilled about it all this morning, planning my takeover of the British country side with my Euro savings...and then sterling rose against euros.

I phoned DH who is frustratingly calm and nonplussed. He's of the opinion que sera sera but I like a good hysterical hop and and down...its got a curious numbing effect.

There is also a plus side, this has to have been the best appetite supressant day for a long while.

Sir_Humphrey

Entertainer wrote: »

Just console yourself with the thought of all the money you're saving as prices continue to fall. £30,000 pays for alot of rent.

Quite right.

To the OP: I am saving for a deposit, and £30000 is a lot more than the interest I have lost owing to the IR cuts. The money you saved is also less money you will need to borrow and pay interest upon.

ad9898_3

To be honest, I'm ok today, the most important thing is having a job and keeping it, rates at 0% are irrelevant if your savings are for a house purchase, as we all know average prices are down over 30k, so as long as you're working, things are fine.

lynzpower

lostinrates wrote: »

Actually I feel sick to the stomach today. I felt quite chilled about it all this morning, planning my takeover of the British country side with my Euro savings...and then sterling rose against euros.

I phoned DH who is frustratingly calm and nonplussed. He's of the opinion que sera sera but I like a good hysterical hop and and down...its got a curious numbing effect.

There is also a plus side, this has to have been the best appetite supressant day for a long while.

I felt like this last time, now I think Ive turned Que sera.

After all, we can all see what should be happening.

If the FSA are going to reduce the amount of multiples FTBS can get
AND
If the banks wont lend 8 times anymore
AND
therefore we all have to save 10% deposits
THEN
why is the governmetn not rewarding savers -= well its not even about them rewarding us- its about us getting the requisite amount of money together to get the deposit ready for the mortgage in the first place.

Those on the SVR are fine! many are seeing huge cuts in what they have top pay for thier mortgage. Those who are fixed wont benefit.

Those trying to sell wont be able to sell as FTBs are still trying to get thier deposits together and low IR isnt helping that happen.

I am trying to give up anger to this government. We are not listened to, so im not getting myself in a state about it.

When the IR drops to zero and we have to pay to have our savings in the bank.- I can definatley see this happen- they can forget it! There is no way that is going to happen. Id rather move to ireland :eek:

Alan_M_2

sympatex wrote: »

I earn an average salary nationally and 3bed semis sell for 8x my salary.

Here may be the root of your problem, a 3 bed semi is not a first time property and I don't think there has ever been a time when a 3 bed semi has been anywhere near 3.5 x a single persons salary......

The traditional FTB property for singleton is a studio flat or 1 bed flat....maybe a 2 bed with a partner/friend....a three bed semi? that one or two properties further on unless you had an inheritance or unusually well paid job.....

stephen163

I'm saving for a deposit too but i'm more optimistic than some of the views expressed here. Inflation will probably go very low soon enough and this will increase your real savings rate. Also, house prices show no signs of recovering any time soon, so as long as you're regularly putting money into your deposit fund, this scenario isn't too bad.

sympatex

Alan_M wrote: »

Here may be the root of your problem, a 3 bed semi is not a first time property and I don't think there has ever been a time when a 3 bed semi has been anywhere near 3.5 x a single persons salary......

The traditional FTB property for singleton is a studio flat or 1 bed flat....maybe a 2 bed with a partner/friend....a three bed semi? that one or two properties further on unless you had an inheritance or unusually well paid job.....

Alan, fair enough but if i earn average salary, i should therefore be able to purchase an average house regardless of my position in the housing chain. I could be a FTB earning 250k a year, they wouldn't buy a 1bed.

matthewcb

lynzpower wrote: »

I am trying to give up anger to this government. We are not listened to, so im not getting myself in a state about it. :eek:

I totally agree. I've given up hoping that New Labour will do the right thing,

The best thing for the country would be a clean slate, and an administration not hamstrung by a refusal to admit faults. The best thing Brown could do is acknowledge the country has lost confidence in him and go to the polls. He could leave with some dignity that way.

But we all know a man that brooded for 10 years for this job will hang on until the last second because he knows what will happen at an election.

This forum depresses me, not because of the posters (99% of you are great!). But because we have another 14 months of this before we're rid of this hopeless, and largely hated, bunch. So I'll just resort to be a lurker on the moneysaverarms board instead. I have my bottle of champagne ready for election night btw .