Parents, you're just making it worse! Please STOP!

Pobby

BobProperty wrote:

One of the things that I believe has skewed the market in the last few years has been the increasing availability of IO mortgages and the increase in the limits on the income multiples that are being allowed. These days it appears you can get an IO mortgage of 5 times income, a product which wouldn't have existed 5 years ago. The only way a crash is going to be postponed is by lenders offering American style "exotic" mortgages and god help anyone who takes one of those out in the next 5 years. If we go along that route, the crash will be more like an earthquake when it happens.

Can only agree with the above.I know of people who VERY exposed imho and are taking on huge IO mortgages and I see no real vehicle they are investing in to pay off the capital.

Some,believe it or not are thinling of going into btl as well.most have no idea what they are doing but it`s go with the flow!Give it a year maybe 5 years there will be a lot of people burnt badly by property.

hornetgirl

I don't see how things like help from parents and BTL are "skewing" the market. That is the market, like it or not. FTBs don't have a divine right to special reduced prices.

PoorDave

sanfrancisco wrote:

Japan. Were global now. Get reading.

I totally agree with vishpatel. Everything you say is spot on.

Everything? Or just posts on this thread?

And I thought the world was flat...

PoorDave

nelly wrote:

Sinse when has it bothered this government about alienating anyone?

heres how it'll be worded.

Right peasants, when you were thick enough to belive our bullsh1t about not putting 1 single penny on income tax you fell for it.

Heres the list of other taxes we had to invent instead, I've had to write it on a bog roll cos its that long.
So now we are doing a new one called "taxing people with houses who dont work in whitehall", basically it means you pay more and we dont.

We know this is a tried and tested system cos we did it when we awarded ourselves a pay rise and pension rise, where as you lot have no pension and dont earn as much as us and you never will, now sod off, do as your told, and get your hand in your pockets.

They might put a few big words in there but it'll basically add up to the same result.

Same applies to any government though

sarah_elton

vishpatel wrote:

Rate rises are good for FTB!

Except repayments are more so you won't be able to borrow as much.

Prices will fall, but you will be able to borrow less.

PoorDave

hornetgirl wrote:

I don't see how things like help from parents and BTL are "skewing" the market. That is the market, like it or not. FTBs don't have a divine right to special reduced prices.

Exactly. I couldn't agree more. We can't magically turn the clock back to a time when there weren't so many BTL LL's "ruining the market for FTB's". Anyone who thinks that is thinking down the wrong lines i'm afraid.

vishpatel

sarah_elton wrote:

Except repayments are more so you won't be able to borrow as much.

Prices will fall, but you will be able to borrow less.

yes, but over the 'long term' rates will come down thus leaving you with less interest to pay, and also less principal.

Buying when interest rates are low will mean you'll pay more for the property in the first place, and loads more on interest when rates go up.

vishpatel

hornetgirl wrote:

I don't see how things like help from parents and BTL are "skewing" the market. That is the market, like it or not. FTBs don't have a divine right to special reduced prices.

I just wish more would say no to the high prices being asked at the moment. But most just give in to the pressure & spin. Shame - they're just young and impressionable.

vishpatel

Ems*Honie wrote:

Surely these are not the only times in which parents have lent money/ financially helped their children buy a house? Is it not something that is normal and part of being a family?

I would wager it happens a LOT more often now. I've had to fend off such offers from my family - generous as they are. There's something very wrong. I should be able to afford it myself, and if I can't - tough.

vishpatel

PoorDave wrote:

Who says rate rises are coming?

I do. Thats my educated opinion based on the evidence I see in the global economy.

It depends whether you believe the governments inflation figures to a certain extent. Delaying rate rises as the MPC have done IMO will just increase the pain later on.

OK for me though. No debt, just cash in the bank