House price rises "not sustainable"

Dan:_4

Graham_Devon wrote: »

Yer, and you pay the price. I'm not that daft. Just the arrangement fee would pay for my entire food shopping bill for a year.

The smaller the deposit, the more expensive rates you pay. This is not something new.

Over the years, as house prices rise and you pay the mortgage, your LTV will reduce and so will the rates.

Its hard at first but gets easier over the years. Ask anyone who has had a mortgage over 10, 15, 20 years.

Graham_Devon

Dan: wrote: »

The smaller the deposit, the more expensive rates you pay. This is not something new.

Over the years, as house prices rise and you pay the mortgage, your LTV will reduce and so will the rates.

Its hard at first but gets easier over the years. Ask anyone who has had a mortgage over 10, 15, 20 years.

Dan, theres no need to try and convince me.

I am telling you of the problems. The house may be cheaper, but actually it's less affordable now its cheaper. Theres no point in trying to convince otherwise, or saying buy now while it's cheap, without looking at the problems associated with it all.

I'd guess property for most FTB's, although lower in price, has become less attainable. Unless of course you gain your deposit from somewhere other than working and saving.

Whether it becomes cheaper over 15 years is neither here nor there. Your skirting around what I said with obvious statements.

The whole situation in my mind, of rising prices, lack of lending, bigger deposits, bigger arrangement fee's, the upcoming interest rate issue, actually, makes this silly boom in house prices even less sustainable than what we have just been through in the last boom.

Dan:_4

sjaypink wrote: »

really? i put some figures into a comparison site (money supermaket i think) a couple of weeks ago, and it come up with no available mortgage for 10% ? only a couple for 15%

perhaps it is to do with the wage multiple?

Moneysupermarket is rubbish.

A very quick search revels Halifax offer FTB mortgages for those with 10% deposits.

The mortgage board is very useful to find out which lenders offer this LTV product.

sjaypink

Dan: wrote: »

Moneysupermarket is rubbish.

A very quick search revels Halifax offer FTB mortgages for those with 10% deposits.

The mortgage board is very useful to find out which lenders offer this LTV product.

i guess advertising those mortgages is one thing, but approving them is another

i wonder how many people are being approved.....? guess youd have to have v good wage and perfect credit for 10% ltv atm

Dan:_4

Graham_Devon wrote: »

Dan, theres no need to try and convince me.

I am telling you of the problems. The house may be cheaper, but actually it's less affordable now its cheaper. Theres no point in trying to convince otherwise, or saying buy now while it's cheap, without looking at the problems associated with it all.

I'd guess property for most FTB's, although lower in price, has become less attainable. Unless of course you gain your deposit from somewhere other than working and saving.

Whether it becomes cheaper over 15 years is neither here nor there. Your skirting around what I said with obvious statements.

Im certainly not trying to convince you of anything, especially into buying. Just pointing out your errors (you said at least 20% depoist was required) incase people are reading that are seeking information.

Graham_Devon

Dan: wrote: »

Moneysupermarket is rubbish.

A very quick search revels Halifax offer FTB mortgages for those with 10% deposits.

The mortgage board is very useful to find out which lenders offer this LTV product.

LOL, at an interest rate of 6.34%.

An arrangement fee of 2.5% of the total loaned.

On the house I'm looking at, that would mean basically the arrangement fee it's self would be £4225

Dan:_4

sjaypink wrote: »

i guess advertising those mortgages is one thing, but approving them is another

i wonder how many people are being approved.....? guess youd have to have v good wage and perfect credit for 10% ltv atm

Salary will depend on the amount the want to borrow.

A perfect credit rating is a must.

sjaypink

Graham_Devon wrote: »

LOL, at an interest rate of 6.34%.

An arrangement fee of 2.5% of the total loaned.

out of interest, is that an upfront fee or added to the mortgage term?

mewbie_2

Dan: wrote: »

Salary will depend on the amount the want to borrow.

A perfect credit rating is a must.

Who on earth has got one of those? We've all done a bit blagging in our younger days surely? I don't mean anything illegal - just stolen cards, stealing ID's - low level monkey business. More of a benefit supplement than a crime.

Graham_Devon

sjaypink wrote: »

out of interest, is that an upfront fee or added to the mortgage term?

Will be added to the mortgage, and interest charged.

You could of course pay it up front. But thats a pretty large sum of extra saving you need to do.

Edit: May I also state I don't spend £4000 on food a year. I'm don't have a job as a politician. I just didn't realise that the fee's were so damn huge, seem to have gone up a bit since the last time I looked.