Who should be able to buy?

Dan:_4

mewbie wrote: »

No. I am not saying that. But it is difficult to explain in such a way that you are able to understand. Lower base rates mean heavily indebted overborrowers have survived for longer than in more normal rate scenario.

There. Does that help you?

Mewbs, don't be foolish here. The low base rate has only helped those on a tracker or SVR and to be honest, there is no reason to suggest they could not afford the repayments when rates were 6%.

Other folk who are heavily indebted are likely to have personal loans and credit cards, and the base rate does not effect these.

mewbie_2

Dan: wrote: »

Mewbs, don't be foolish here. The low base rate has only helped those on a tracker or SVR and to be honest, there is no reason to suggest they could not afford the repayments when rates were 6%.

Other folk who are heavily indebted are likely to have personal loans and credit cards, and the base rate does not effect these.

.5% rate should mean a housing boom, an absolute madness of another bubble building. The fact it isn't means that the market is being propped up by artifically low rates. At some stage this will change.

chucky

mewbie wrote: »

.5% rate should mean a housing boom, an absolute madness of another bubble building. The fact it isn't means that the market is being propped up by artifically low rates. At some stage this will change.

mortgage rates aren't 0.5%

banks aren't lending to everyone and being very selective to whom and where they lend.
how can you have a housing boom if lending is being restricted?

mewbie_2

chucky wrote: »

mortgage rates aren't 0.5%

banks aren't lending to everyone and being very selective to whom and where they lend.
how can you have a housing boom if lending is being restricted?

I assume that professional investors can borrow at more favourable rates that the amateur BTL's. I'm thinking of business people Chucky, not wannabee's like us.

chucky

mewbie wrote: »

I assume that professional investors can borrow at more favourable rates that the amateur BTL's. I'm thinking of business people Chucky, not wannabee's like us.

no they wouldn't be able to get favourable rates unless they you were looking at a massive deal.
mere mortals like us couldn't compete with these guys.

off the shelf BTL finance is currently quite expensive. especially fixed rates.
the differential on trackers is not as good as it was 18 months ago.

if you go down the commercial route it can be cheaper - for example a 5 year fixed would be the current swap rate plus anything between 2.5% and 3.5% dependent on LTV.

current swap rates are
2 year 2.08%
3 year 2.78%
5 year 3.52%

the_ash_and_the_oak

agree that rates aren't as low as headline figures might suggest (esp for new or future buyers - meaning 'buy now rates this low will never happene again" is a touch disingenuous)

as for who "should" be able to buy - difficult and subjective word 'should'. will say that ownership stats in this country are certainly much higher than most, but more important imo is the fact that this figure has risen steadily over the last century - and is a factor in rising prices. obviously there comes a point at which the figure cannot rise any further without 'artificial' support (right-to-buy, shared ownership, govt schemes etc). could it rise still further? possibly. is that desirable? depends on opinion.

the_ash_and_the_oak

also kinda feeling that when ownership stats are lower but increasing this is a great boost to prices (in real terms), a small group selling to a larger pool. but that when ownership stats are high this boost to prices in real terms isn't present (unless it is going to go higher still - schemes can achieve this to a degree imo)

Thrugelmir

Dan: wrote: »

Mewbs, don't be foolish here. The low base rate has only helped those on a tracker or SVR and to be honest, there is no reason to suggest they could not afford the repayments when rates were 6%.

45% of all mortgage advances in 2007 were based on self certified income. :eek:

Thrugelmir

chucky wrote: »

no they wouldn't be able to get favourable rates unless they you were looking at a massive deal.
mere mortals like us couldn't compete with these guys.

off the shelf BTL finance is currently quite expensive. especially fixed rates.
the differential on trackers is not as good as it was 18 months ago.

if you go down the commercial route it can be cheaper - for example a 5 year fixed would be the current swap rate plus anything between 2.5% and 3.5% dependent on LTV.

current swap rates are
2 year 2.08%
3 year 2.78%
5 year 3.52%

Where is BTL finance available? Chelsea BS have left the market permanently now, and won't be the last.

JoeCrystal

mewbie wrote: »

Er back to topic.

Who should be able to buy? Anyone with a 10% deposit, 3.5 times income. Should also get you in a two bed somewhere - not a new build 'studio' apartment.

3.5 times income? So that mean I can only get mortgage of £41,000... There is a nice 1 bedroom flat with front garden and garage and such costing £109,950 nearby. Of course, it require 60% deposit... :mad:

I suppose it is nice to have your own home and indeed, it always been my desire to have a nice home with back garden. :beer:

While I agree with mewbie's income limit or indeed, should it be lower. The deposit of 10% really should be up to more higher level. Which ironically meant that it is even less likely to get a home!

Despite what I mentioned above, I pretty much gave up the hope of getting my very own home in my lifetime.