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

Graham_Devon

ray123 wrote: »

It should only take 2-3 years to save the deposit.
Is a very good idea imo, for the reason that it will teach FTBs the art of budgeting...

If someone cannot save a deposit of 30k over 3 years (833.33 per month), how can they afford to puchase a property and keep up with mortgage repayments?

£833 per month is a HELL of a lot to save when you are paying out rent too.

That's some peoples entire salaries.

I'm not so sure some people on here seem to live on the same planet as those they preach too.

House prices are going to HAVE to plummet if this takes effect.

lostinrates

mitchaa wrote: »

Average family with 2 kids, ........
This is getting ridiculous expecting everyday normal people to save 15-25%

Perhaps if you are living with parents, or in the military, £833pm savings may be possible on modest incomes but if living in the real world, and having to pay expenditure like above, not a chance.

I agree, I think it would take longer if you have a fmaily, as I mentioned But it always slightly surprises be that its assumed people are starting saving from no where when they start to look for a house/in a relationship. Its possible to start saving, even if not aggressively, as soon as you enter the work place, and meet your partner/reach a place where you start to think about buying/settling down with some degree of savings already established.

Cat695

Looks like house prices haven't got a hells chance doesn't it.

What with proposal's of 3 x salary max....or even this 15% deposit

I completely agree that anybody buying a house (with mortgage) should have some kind of deposit (15% sounds like a good idea)....

why should a bank put up all the risk if the buyer hasn't bothered to save a simple deposit.

chucky

Graham_Devon wrote: »

I'm not so sure some people on here seem to live on the same planet as those they preach too.

yes you're right

Graham_Devon wrote: »

£833 per month is a HELL of a lot to save when you are paying out rent too.

That's some peoples entire salaries.

I'm not so sure some people on here seem to live on the same planet as those they preach too.

House prices are going to HAVE to plummet if this takes effect.

just shows that home buying isn't for everyone and should only be for those that can afford to own their own property

mitchaa

Cat695 wrote: »

Looks like house prices haven't got a hells chance doesn't it.

What with proposal's of 3 x salary max....or even this 15% deposit

Strange, i have not seen any stamped approvals of any such legislations, just ideas flouted around on the internet with no basis behind them.

Neither of the above will ever get approval if you ask me.

I would put my house on it in fact.

mitchaa

Oh, and this 3x income nonsense has been deferred for 6 months until September before it is next discussed.

So not happening anytime soon, or in fact never at all

Graham_Devon

chucky wrote: »

yes you're right



just shows that home buying isn't for everyone and should only be for those that can afford to own their own property

Just shows you havent a clue what you are on about....again.

The point was about saving £833 a month (sorry, ONLY £833 a month).

People could pay their mortgage on that. But they can't pay their rent AND pay for their lives, AND pay for their families AND save those amounts.

You want people to save 10k a YEAR, on an average salary of 24k a year, before tax, leaving them around 19k per year.

So you are giving them 9k a year to live on AND pay for their entire families lives.

No seriously, I'm not the one living on a different planet here. You may find this extremely scary from a landlord perspective with your BTL mortgages, as house prices will have to plummets, but people just can't do this, and your just making yourself look silly now.

Cat695

mitchaa wrote: »

Strange, i have not seen any stamped approvals of any such legislations, just ideas flouted around on the internet with no basis behind them.

Neither of the above will ever get approval if you ask me.

I would put my house on it in fact.

Hence why i said proposals.....and not approvals

And seeing as the 3 x salary came from the FSA then I think its a little more than ideas floated around the internet.

ILW

mitchaa wrote: »

Unless you are high earners, the above would be next to impossible. The requirement for 15/25% deposits would be ridiculous if you ask me.

Average family with 2 kids, 1 male earning average £26k income and paying normal 6% pension contributions and a P/T mum earning £11k with no pension, the income of £37k is as below

£1515+£790 = £2305

Typical 3 bed SD property = £750
CT and water rates = £150
Car expenditure incl petrol/tax/MOT/Servicing = £200
Necessary bills = £250
Food = £400
Child costs, clothing, leisure, school clubs = £200

That's leaving around £350 spare cash leftover however i've not taken into account birthdays, xmas's, holidays, adult leisure, any debts etc etc

These are typical incomes and expenditures of average families, so where on earth do you suggest that they find a spare £833pm from when taking into consideration all the above

For an average family to save £30k, i think you would be looking at closer to 10yrs, not 3yrs. What would be the point in saving for 10yrs, 10yrs worth of wasted rental and missed equity if you ask me.

This is getting ridiculous expecting everyday normal people to save 15-25%

Perhaps if you are living with parents, or in the military, £833pm savings may be possible on modest incomes but if living in the real world, and having to pay expenditure like above, not a chance.

Why not save the deposit, get the house and THEN have the children. Just a suggestion.

Graham_Devon

ILW wrote: »

Why not save the deposit, get the house and THEN have the children. Just a suggestion.

And your supposed to live on the streets knitting clothes from used teabags and fag ends in the meantime?