Rightmove October +2.8%, London records biggest ever indice rise at 6.5%

fc123

lostinrates wrote: »

Good! BTW i saw one of your products on a banner somewhere else entirely, and I thought ''Good for FC123''.

Ooooh where where? Do tell?

brit1234

Its scary stuff, if sellers keep this up there will be no bottom of the market. FTB will not exist.

:eek:

Simply unsustainable, how many people have 25% deposits at the bottom rung. There will be no chains, everything will come to a standstill.

Prices are simply going to fall to normal levels with more and more people being exposed for their dodgy loans as they expire.

dopester

Cleaver wrote: »

Apologies in advance if this post comes across as a bit irritable Dopester. If it does then it's because I respect your opinion a lot, so take it as a compliment. That said...

Cleaver. I deliberately dangled an irritation-hook for you in my last post on this thread, which you've done well to avoid biting on, and instead answered reasonably.

All your well-made points are noted and respected. It isn't like I'm anti-Cleaver's happiness in my own outlook. You reasonably wanting to move from a smaller flat (where noise is becoming an issue) to a bigger nicer home of your own in another area. If after all the different house price discussions on this forum you are comfortable and clear with a decision to buy, that is fine with me. You know the forum just wants the best for you.

Treadmill

FTBs don't have big deposits because they have never needed them before, if bigger deposits are needed, given time to save then FTBs will have bigger deposits, I can't see this being an issue slowing down HPI much longer. the knock on effect will be the FTBs squirreling away money and not spending it on other things and so keeping lots of money out of the economy though.

Some of the young couples I now are saving a over grand a month towards a deposit and forgoing nights out and holidays...

Also with mortgage rates being very low, Mum and Dad have more money to give them, in some cases (like me) parents have been saving for years or investing money to give their kids a deposit , my Daughter is 13 and I've got 35K stashed already, don't be fooled into thinking there is no money about in all cases.

the_ash_and_the_oak

How long do we think mortgages for FTBs are going to stay this low?

HAMISH_MCTAVISH

Treadmill wrote: »

FTBs don't have big deposits because they have never needed them before, if bigger deposits are needed, given time to save then FTBs will have bigger deposits, I can't see this being an issue slowing down HPI much longer. the knock on effect will be the FTBs squirreling away money and not spending it on other things and so keeping lots of money out of the economy though.

Some of the young couples I now are saving a over grand a month towards a deposit and forgoing nights out and holidays...

Also with mortgage rates being very low, Mum and Dad have more money to give them, in some cases (like me) parents have been saving for years or investing money to give their kids a deposit , my Daughter is 13 and I've got 35K stashed already, don't be fooled into thinking there is no money about in all cases.

Exactly.

Never underestimate the desire, willingness or ability of people to do whatever it takes to gain the security and advantages of home ownership.

Large deposits won't stop HPI. Better checks on affordability won't stop HPI. They may slow HPI for a couple of years, but soon enough the first of the savers will have achieved their deposit and every month afterwards there will be more joining them. And of course such rapid and aggressive saving would mean people more than satisfy the new affordability criteria.

IveSeenTheLight

brit1234 wrote: »

Simply unsustainable, how many people have 25% deposits at the bottom rung. There will be no chains, everything will come to a standstill.

Only a 10% deposit is required.
Many lenders provide 90% LTV products

the_ash_and_the_oak

IveSeenTheLight wrote: »

Only a 10% deposit is required.
Many lenders provide 90% LTV products

There seem to be a good few 90%LTV mortgage for FTBs around at about the 6% level. It is difficult to tell just how long the low rates will be around - opinion seems pretty divided on this

chucky

brit1234 wrote: »

Its scary stuff, if sellers keep this up there will be no bottom of the market. FTB will not exist.

:eek:

Simply unsustainable, how many people have 25% deposits at the bottom rung. There will be no chains, everything will come to a standstill.

Prices are simply going to fall to normal levels with more and more people being exposed for their dodgy loans as they expire.

1. why is this unsustainable? in the 1970s and 1980s mortgage lending depended on 25% deposits. house prices did not crash.

2. there are quite a few lenders who are offereing 90% mortgages with a reasonable interest rate.

nice soundbites Brit - but it's an innacurate post

the_ash_and_the_oak

chucky wrote: »

1. why is this unsustainable? in the 1970s and 1980s mortgage lending depended on 25% deposits. house prices did not crash.

2. there are quite a few lenders who are offereing 90% mortgages with a reasonable interest rate.

nice soundbites Brit - but it's an innacurate post

1. Yes but imo the arg here isn't really so much whether 25% deposits themselves crash anything but if 25% deposits follow a period where 0% deposits are required (the same way 15% rates in themselves aren't a problem if they are following a period of 12% rates but would be if following a period of 5% rates)

2. 90% LTVs at around 6% are certainly available for FTBs (but when we had a look at week or so ago I couldn't get them to lend me more than 3.5x a 40k salary for the above)