Why do FTBs get all the help?

Thrugelmir

Idiophreak wrote: »

Don't necessarily disagree with you, but to reply to a post where someone says they're saving that amount with "if you can't afford to save" is a little bit odd.

Did you mean to say "if you can't afford to save 2k/month" or similar? What's your suggestion of how much someone should be able to save before they should have the nerve to consider trying to own their own home?

In any case, you don't know what the OPs existing outgoings are...If they're paying most of the bills etc associated with running a home already, plus rent to their parents, £700 per month could well be enough to move up to living in their own home.

To broaden the debate out. Rather than refer to a particular individual of whom we know little.

House purchase is a serious long term purchase. I refrain from using the word investment as thats what property has become. Rather than a secure place one can call home.

We have all become to pulling out a credit card, getting a sofa on 4 years interest free credit or asking the bank for a 125% advance to buy a home. We have lost the savings habit as a nation. Not everyone but the majority.

So its hardly surprising now that when people decide to buy a home. They realise the enormity of the task. As they've spent their disposable income most months. In the process paying interest on a high proportion of their purchases. As its been on buy now pay later.

Saving in even the smallest form has to start even at the point when you get your first job. A few pounds tucked away from every pay packet.
May not seem much but over a period of time invested in a good savings account will mount up.

I'm not criticising anybody for the choices they've made in how they spend thie money. We live in a Nanny state as it is. But each person has to take individual responsibilty for themselves.

Banks don't print money. They lend us somebody elses. So unless we save ourselves who are we going to borrow from in the future?

As for 95% mortgages they are to help people who already have a mortgage with the same lender. Its not for new lending.

House prices haven't bottomed out yet ( in my opinion). Are unlikely to rise for a number of years. So best advice is to keep saving and the goal will become achievable.

Apologies if my previous comments were curt.

Thrugelmir

winnie101 wrote: »

Hi!
I am in agreement with selbyjay. I moved house two years ago. I bought a new house for £320k and had a deposit of £100k (68.7% LTV). This to me was a good deposit. I have been in the housing market for 6 years and I have never missed a payment. Abbey have now told me my house is worth £230K (94% LTV) and I can't get a decent mortgage rate. Why am I being punished for irresponsible people who got mortgages in the past but couldn't afford them! Banks need to take more notice of people's credit history!

Unfortunately you fall into the high risk category for the banks. I've no idea as to your employment stability but a loss of income and falling house prices would quickly push you into negative equity.

Its not a question of not affording mortgages. Changes in personal circumstances are very sudden. Three weeks ago we made some employees redundant , last Friday we heard that the wife of one of them had also lost her job. So from two incomes they've now got none. Life is savage.