Mortgage lending up again, rises by 2%

HAMISH_MCTAVISH

MiserlyMartin wrote: »

CML figures class anyone who is entering the market without a property to sell as a FTB, .

I thought they had to have been out of the market for at least 3 years???

Which rules out anyone except the very, very few long term STR's.

Thrugelmir

ruggedtoast wrote: »

I would imagine that the average salary of a place that sees £90k 2 bed places is probably quite low though.

I don't think that FTB's purchase an average priced house. :rolleyes:

As they may not ( if a couple) both earn "average" wages. Far more people earn less than an average wage than more.

We are talking about flats which for many. Including myself many years ago was the stepping point onto the property ladder.

Thrugelmir

HAMISH_MCTAVISH wrote: »

As frequently stated, there is a massive shortage of housing, of the type people want, in the areas people want to live, and where the employment exists to support them.

But this has always been the case. People commuting long distances on a daily basis into London for example, in order to find their ideal home.

Emy1501

MiserlyMartin wrote: »

CML figures class anyone who is entering the market without a property to sell as a FTB, therefore this can include anyone who is renting currently having owned before. Also you forget about the many keyworker, and shared ownership purchases which are all many FTBs can scrape to afford at these prices.

Also 4 out of 5 FTB's rely on Parents for financial help so therefore if your parents are not well off then its likely you are frozen out.

Thrugelmir

Anyone care to do the maths for the average earnings of FTB's?

There were 6,200 first-time buyer loans for properties between the old threshold of £125,000 and the temporary threshold of £175,000, representing 32% of the 19,700 loans to first-time buyers in September. In addition, 7,800 first-time buyers (40%) bought properties valued below the £125,000 original threshold.
There were 7,300 home mover loans for properties between £125,000 and £175,000 which was 24% of the 31,000 loans to home movers in September.

Table can be found at

http://www.cml.org.uk/cml/media/press/2455

Thrugelmir

Emy1501 wrote: »

Also 4 out of 5 FTB's rely on Parents for financial help so therefore if your parents are not well off then its likely you are frozen out.

And where's the evidence to support this?

IveSeenTheLight

Thrugelmir wrote: »

Anyone care to do the maths for the average earnings of FTB's?



Table can be found at

http://www.cml.org.uk/cml/media/press/2455

The only maths that can be done on this is to show than on average FTBers took out a loan of value £111,675.
This is shown to be a 75% LTV loan so the average property purchased was for £148,900

The average income multiplier was 3.15 so theoretically their earning was £35,452 for the properties (joint or single not stated)

Interestingly the percentage of income spent on mortgage interest was only 15.1%

Of what benefit this shows, I do not know

Emy1501

Thrugelmir wrote: »

And where's the evidence to support this?

http://www.guardian.co.uk/money/2009/jul/09/first-time-buyers-parental-borrowing?showAllComments=true

IveSeenTheLight

Emy1501 wrote: »

http://www.guardian.co.uk/money/2009/jul/09/first-time-buyers-parental-borrowing?showAllComments=true

Hardly evidence or fact though is it

Around four out of five young first-time buyers are thought to be receiving help from their parents to raise a big enough deposit to get on the housing ladder, mortgage lenders said today.

Thrugelmir

IveSeenTheLight wrote: »

The only maths that can be done on this is to show than on average FTBers took out a loan of value £111,675.
This is shown to be a 75% LTV loan so the average property purchased was for £148,900

The average income multiplier was 3.15 so theoretically their earning was £35,452 for the properties (joint or single not stated)

Interestingly the percentage of income spent on mortgage interest was only 15.1%

Of what benefit this shows, I do not know

Merely that earlier it was suggested that an area must be low wage if "cheap" property is available to purchase.

My personal perception is that there must be "hot" spots that are supporting average house prices. Due to there being a concentration of above average wage earners. Such as silicon Thames Valley where you have all the worlds largest computer companies and mobile phone operators concentrated in a smallish area.