Abandoned hope for all ye FTBs

IveSeenTheLight

mbga9pgf wrote: »

Not with 10% deposit requirements they wont. :rotfl::rotfl:

Why would you ask for a 10% deposit when the lenders know prices have another 20-25% to drop?

Who "knows" that?
Crystal ball time again I think.

Graham_Devon

IveSeenTheLight wrote: »

slight decrease or dramatically improved?

http://www.lloydsbankinggroup.com/media/excel/01_05_09Affordability.xls

According tot he above link the UK has a house price to earning ratio of 4.35, down from a peak of 5.86 and is much nearer the long term 26 year average of 4.02.

Some areas are showing ratios under a 4.00 ration of 3.73 (Scotland), 3.76 (Y & H) & 3.80 (NWest)

Sure there are still some areas very high i.e. 5.62 (N Irleand) and 5.42 (SWest), but overall, there is in my opinion a dramatic change in the affordability ratios

The affordability ratios are worthless right now though.

It's fine saying its now 4.35x wages, but you simply cannot get that money lent to you.

So it really is pointless saying affordability is now just above average, so just work harder.

Just like someone saying "hey, this loan is great, it's only 1% APR, you should get it" and then telling me "not that you can ever have it, but still, think about what you could do if you could!".

a_rather_tall_man

pickles110564 wrote: »

So what were you doing before the recession kicked in? Always something or someone to blame other than yourself.

I don't recall saying I was struggling in anyway but thanks for the concern. I was merely pointing out that jobs aren't exactly in abundance right now.

pickles110564

Graham_Devon wrote: »

It's fine saying its now 4.35x wages, but you simply cannot get that money lent to you.

Says who?
If banks are not lending are all the houses that are selling at the moment being paid for in cash?

penguine

kittie wrote: »

In the `old` days we saved and saved hard for a deposit ie we did without other things . Different times and different mentality. Nothing was handed to us on a plate and many of us did two jobs to get the mortgage deposit together. It can be done these days too but takes sacrifice and commitment

I agree that getting a deposit in place should be a pre requisite to buying a property. But we also need a more stable property market. When prices are ballooning out of control it can be virtually impossible to save a deposit. House prices in some areas were increasing vastly out of proportion to people's ability to save.

IveSeenTheLight

Graham_Devon wrote: »

The affordability ratios are worthless right now though.

It's fine saying its now 4.35x wages, but you simply cannot get that money lent to you.

So it really is pointless saying affordability is now just above average, so just work harder.

Just like someone saying "hey, this loan is great, it's only 1% APR, you should get it" and then telling me "not that you can ever have it, but still, think about what you could do if you could!".

1) Available Lending - See my post 4 on this subject
http://forums.moneysavingexpert.com/showpost.html?p=21843843&postcount=4

2) Just work harder - I did not say people just needed to work harder, my point was that people could afford before and afforability levels have dramatically increased, back to 2002 levels from some reports

Graham_Devon

pickles110564 wrote: »

Says who?
If banks are not lending are all the houses that are selling at the moment being paid for in cash?

Pickles. I have spent long enough here, and read enough threads to realise there is absolutely no point in trying to debate or even explain things to you.

So, have a look around the mortgages board. Read the papers. Watch the news. Maybe try applying for a motgage like my mate has just done and been turned down with a 15% deposit.

pickles110564

Graham_Devon wrote: »

Maybe try applying for a motgage like my mate has just done and been turned down with a 15% deposit.

Like I have been asked in the past, supply proof that he was turned down with a 15% deposit.
Show letter explaining full reasons of why he was turned down if he ever was, this would show that you are not making it up like most on here do to try and convince others to their side of the jackanory.

StevieJ

a_rather_tall_man wrote: »

Might have been possible a before the recession kicked off but right now I know people struggling to find one job let alone two.

Similar to the early 80's then.

IveSeenTheLight

penguine wrote: »

I agree that getting a deposit in place should be a pre requisite to buying a property. But we also need a more stable property market. When prices are ballooning out of control it can be virtually impossible to save a deposit. House prices in some areas were increasing vastly out of proportion to people's ability to save.

I can agree with this.

If this is accepted, then with prices already at the long term average growth, maybe people should not be wishing / hoping for a massive undershoot of that long term trend