Homebuyers could be forced to put down a deposit of at least 15 per cent

penguine

ukcarper wrote: »

Didn’t people save hard and put down big deposits like your OH which a lot of people now are not prepared to do now.

I think many people in the past few years haven't been prepared to put down deposits when buying a home because they didn't need to -- why bother if the bank was prepared to take all the risk? The crazy lending changed prevailing attitudes -- for a long time after prices started falling there were still people over on the house buying and renting forum asking where they could get a 100% mortgage. In another 5 years or so the majority of people will be back to expecting they have to save up a deposit first.

lostinrates

penguine wrote: »

I think many people in the past few years haven't been prepared to put down deposits when buying a home because they didn't need to -- why bother if the bank was prepared to take all the risk? .

Further to that I think most people in Britain, still, don't equate home ownership with risk.

Kenny4315

ukcarper wrote: »

That makes sense but has sense got anything to do with it

I think that this is the key .... personal responsbility. Not only with mortgages but with credit cards, etc. A large deposit would make folk alot more responsible something that is lacking in the UK, where mewing and spending others cash is seen as acceptable.

penguine

lostinrates wrote: »

Further to that I think most people in Britain, still, don't equate home ownership with risk.

"Safe as houses" is a uniquely British phrase!

mewbie_2

penguine wrote: »

"Safe as houses" is a uniquely British phrase!

It's actually goes back a bit further than that. Safe from the Latin, safartus meaning guaranteed, and hostrectum meaning a dwelling place or abode. The phrase safartus hostrectum would typical describe a centurions family dwelling, meaning a safe place to return after the various wars.

Typically back then a centurion would save a ten per cent deposit, and be able to borrow approx. three times main income in order to buy his first safartus hostrectum. Progress eh?

lostinrates

mewbie wrote: »

It's actually goes back a bit further than that. Safe from the Latin, safartus meaning guaranteed, and hostrectum meaning a dwelling place or abode. The phrase safartus hostrectum would typical describe a centurions family dwelling, meaning a safe place to return after the various wars.

Typically back then a centurion would save a ten per cent deposit, and be able to borrow approx. three times main income in order to buy his first safartus hostrectum. Progress eh?

:rotfl::rotfl: the Romans also had a nice useful little phrase: caveat emptor!;)

MissMoneypenny

Kenny4315 wrote: »

That has been the whole problem ... of remortgaging and releasing equity.

Perhaps if they go back to calling these loans "secured loans against your property" instead of "equity release" people might realise just what they are and not be so keen to take them out.