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

chucky

the_ash_and_the_oak wrote: »

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)

here's what Brit says

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.

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

his expectations of 25% deposits are that house prices will fall to normal levels which is 3 times salary levels.

my point is that 25% depositis won't do this. 60% or 70% deposits might but not having people borrow with 25% deposits.

the_ash_and_the_oak

60 or 70% deposits would absolutely destroy the market!

I think if the market relied on 25% deposits it would have a pretty serious effect though, no? This is kind of a moot point really because its pretty clear there are plenty 10% deposit mortages out there

chucky

the_ash_and_the_oak wrote: »

60 or 70% deposits would absolutely destroy the market!

I think if the market relied on 25% deposits it would have a pretty serious effect though, no? This is kind of a moot point really because its pretty clear there are plenty 10% deposit mortages out there

exactly - Brit continually posts this nonsense.

you would have thought that he would have caught on by now the number of timers people tell him.

chucknorris

chucky wrote: »

exactly - Brit continually posts this nonsense.

you would have thought that he would have caught on by now the number of timers people tell him.

I have noticed in the last few days that some of the bears here do not seem to be able to evaluate information and merely cut and paste articles blindly. Even when you point out to them why something is wrong or probably incorrect they merely point back to the article without questioning it's validity.

the_ash_and_the_oak

chucky wrote: »

exactly - Brit continually posts this nonsense.

you would have thought that he would have caught on by now the number of timers people tell him.

I have no idea.

I think where I draw a bit of a blank here is that while these 10% deposit mortgages clearly exist - the problem is when we've looked I can't really get anyone to give me more than 3.5x salary. We've used 40k as an average salary when doing this (tho this seems to be hotly disputed). This is putting an ave London FTB apartment purchase price at around 154K - what I really don't quite get is - who is the market for the large number of 250-300k apartments in places like Kensal Green, are there really enough 70k earners to buy 1bed flats in Kentish Town?

HAMISH_MCTAVISH

chucknorris wrote: »

I have noticed in the last few days that some of the bears here do not seem to be able to evaluate information and merely cut and paste articles blindly. Even when you point out to them why something is wrong they merely point back to the article without questioning it's validity.

The "50% of mortgages are liar loans" or whatever mindless nonsense it was is a prime example.

You go through the thread, correct the errors, break down the real figures, provide sources to prove them, and the same muppets just repost a page later claiming the same discredited rubbish.

It's been quite interesting watching their psychology this year, the clear stages of denial, fear, and now sheer desperation that they are going through.

Most entertaining, and strangely satisfying.......:beer:

ravenfield

the_ash_and_the_oak wrote: »

I have no idea.

who is the market for the large number of 250-300k apartments in places like Kensal Green, are there really enough 70k earners to buy 1bed flats in Kentish Town?

I know who they are, majority of rich people from outside the UK or rich parents from overseas. Lots of my GF friends from singapore, malaysia, HK, etc are buying those expensive flats as investments. They get a lot of deposit from their parents like easily £200k in cash. I suspect not many local UK people owns those expensive assets.

IveSeenTheLight

the_ash_and_the_oak wrote: »

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)

3.5 * £40k + 10% deposit is pretty nigh on the UK average property

The problem is that you might be competing against joint applications.
HSBC offer 3.5 times joint income at 90% LTV

https://hsss1.hsbc.co.uk/bankinguk/mortgageAIP/ourservice.jsp?Start=true

IveSeenTheLight

the_ash_and_the_oak wrote: »

I have no idea.

I think where I draw a bit of a blank here is that while these 10% deposit mortgages clearly exist - the problem is when we've looked I can't really get anyone to give me more than 3.5x salary. We've used 40k as an average salary when doing this (tho this seems to be hotly disputed). This is putting an ave London FTB apartment purchase price at around 154K - what I really don't quite get is - who is the market for the large number of 250-300k apartments in places like Kensal Green, are there really enough 70k earners to buy 1bed flats in Kentish Town?

Like I said, joint income applicants

the_ash_and_the_oak

IveSeenTheLight wrote: »

Like I said, joint income applicants

Have to admit here I hadn't previously considered couples were buying 1bed flats in any serious number (like the previous poster I had thought it more to be investors)