House prices down to at least 115K... Thans FSA! 3X here we come!

System

whathavewedone wrote: »

So far as people who already have already bought are concerned I imagine it's the same as it's always been. If you are in negative equity or have less than a 5% deposit you can't move or remortgage but just go on the SVR with your existing lender until you are out of negative equity.

Coventry are already doing 100% mortgages for existing borrowers. I expect the banks who have received government money will roll out similar deals, particularly if prices do fall a lot further. It wouldn't be in the banks' interests to repossess people in 100s of thousands of equity because they'd never get their money back. It would also cost the taxpayer more.

The only people who will get repossessed will be the people who can't pay their mortgage same as in previous recessions.

I hope this is true. I have no problem paying my mortgage but if I'm stuck on the SVR I'm not going to be given a fair opportunity to do so

Really2

mbga9pgf wrote: »

Well, yes, if you dont have a 30% deposit like me, it could be a problem!

I disagree when I purchased my first house in 2001 the house was 5% deposit and less than 3X single wage.

In most areas I think that will get you on the ladder at least now.

it is just historicaly expensive areas it could prove a stumbling block but I guess those areas are more afluent so a larger deposit would not be a problem.

ukcarper

What type of house was that

mbga9pgf

really2,examples please? Difference between getting on the ladder and not buying some thrown up new build crap!!!

And Im not on your average wage either!

Really2

ukcarper wrote: »

What type of house was that

3 Bed Semi 90K I was on £30K

Really2

mbga9pgf wrote: »

really2,examples please? Difference between getting on the ladder and not buying some thrown up new build crap!!!

And Im not on your average wage either!

Sorry if you want an Edwardian Manor house you may be left disapointed by all of this.

Britains second largest city (birmingham) as hundreds of 2+ bedroom houses(Not flats) available if you put £120K as the max..

ukcarper

30k must have been above average wage in 2001

Really2

ukcarper wrote: »

30k must have been above average wage in 2001

Most probably and a large 3 bed semi was not a FTB house either.

mbga9pgf

Hmm, birmingham... The place with the largest unemployment growth in the UK... Sounds nice.

30K was only marginally over the average wage in 01, by 2-3K.

Which means that 3 bed semi at under 3X earnings needs to drop to around 105K to be of similar affordability today accounting for inflation.

Really2

mbga9pgf wrote: »

Hmm, birmingham... The place with the largest unemployment growth in the UK... Sounds nice.

30K was only marginally over the average wage in 01, by 2-3K.

Which means that 3 bed semi at under 3X earnings needs to drop to around 105K to be of similar affordability today accounting for inflation.

I don't live there but you wanted exaples I could have done leeds.