100% Mortgages

tara747

poppysarah wrote: »

If you really can't save then DO NOT HAVE A MORTGAGE.

If you can save, just not enough, write to your MP about the House price inflation that's ruined your chances of getting on the ladder.

Do not buy a % of a house or flat. That's just mad.

Hear hear!!!!!!!!!

Brummygold

Hopefully 100% mortgages will not come back and i say this as a young potential first time buyer saving a deposit. If people cannot save the 10,15 or 25% deposits then what hope is there of them paying the mortgage and all the other expenses involved in owning a home.

Mum_of_3_3

No idea where you live PoppySarah, but £52k gets you nothing in my area. The only houses/flats for sale under £110k are part ownership ones, 2-bed houses start at £135k.

Are you seriously suggesting that a couple on average wages (which around here believe it or not is about £20k) and already renting and therefore incurring away-from-parents living expenses are meant to save £25% of £135k? (£33,750 :eek:) By the time most people have saved that the prices of houses have increased and the goalposts have moved yet again, a couple both working full-time may be able to save that at a stretch, but what about a single person, how the heck are they ever meant to save that much?

Surely as long as someone has saved a decent amount 5% or so and can prove they can pay the rent and live easily then they should be able to get a mortgage? Around here renting is just as expensive as having a 95% mortgage.

As for all the people saying 'no one needs to buy a house' how many threads do we have on here moaning about horrendous landlords? Also, what happens when my generation retires? In 30 years time I doubt there will be much in the way of pensions, so how do I pay my rent? Am I meant to assume that there will still be housing benifit then?

Also, I remember renting and I hated every single minute of renting, not being allowed to decorate or put pictures up, having ot go without heating a couple of months in the winter because the landlord couldn't get anyone to fix the system and then having parts of our deposits witheld for no real reason and because of all of this it was never really truly a home.

I agree that house prices should fall dramatically, I would love them too, maybe if the reverted to 2000 levels we could afford a nice 4-bed detached place. However, if the prices did drop to 2000 levels most of the market would grind to a halt due to millions of people being in negative equity.

M_o_3

mrsyorkie

Brummygold wrote: »

Hopefully 100% mortgages will not come back and i say this as a young potential first time buyer saving a deposit. If people cannot save the 10,15 or 25% deposits then what hope is there of them paying the mortgage and all the other expenses involved in owning a home.

Most people (including myself and my spouse and my kids) live away from mummy and daddy and have to pay rent and the bills and therefore it doesn't leave much left in the way of savings to buy a house.

We both work full time, earning a half decent wage and are paying as much rent as we would a mortgage on a smaller place, however have no chance of being able to save up a £20k deposit to be able to buy.

We already pay all of our bills, including insurance which was stipulated in our contract with the landlord so there is no reason why we can't pay a mortgage and "all the other expenses involved in owning a home". Lucky you that you can afford to save for a deposit, but I bet there are a lot more people in my boat than yours. The only way we would be able to afford to buy is if one of my old aunts dies and left me some money (god forbid), or if 100% mortgages were brought back.

I acknowledge that there are people out there who are high risk and who may never be able to afford the mortgage, but if they want the housing market to open up again, then they need to bring it back, but perhaps with stricter criteria.

daisbuys

I rented for 5 years and spend thousands on rent, so couldn't save any money towards a deposit.

If it wasn't for 100% mortgages, I would not be in my home now with £25,000 equity in it ready and waiting to go towards my second home.

All in this time I have never missed a mortgage payment....

poppysarah

Mum_of_3 wrote: »

No idea where you live PoppySarah, but £52k gets you nothing in my area.

I agree that house prices should fall dramatically, ..... grind to a halt due to millions of people being in negative equity.

The system is so messed up because greedy MPs have allowed it to continue. 13 years (more in many cases) of greedy mps buying property at our expense means they're as vested interests in not seeing price drops.

It's wrong. It breaks the whole of society of have such high house prices.

The point is it's no so manby years ago that 52k would get you something amazing. The economy is goosed beyond belief and maybe repair.

I'd go for massive NE and a proper correction - there's no real other way round.
Until then people just need to get on with it as best they can and not fall for the 25% shared ownership scams etc

weehev

mrsyorkie wrote: »

Most people (including myself and my spouse and my kids) live away from mummy and daddy and have to pay rent and the bills and therefore it doesn't leave much left in the way of savings to buy a house.

We both work full time, earning a half decent wage and are paying as much rent as we would a mortgage on a smaller place, however have no chance of being able to save up a £20k deposit to be able to buy.

We already pay all of our bills, including insurance which was stipulated in our contract with the landlord so there is no reason why we can't pay a mortgage and "all the other expenses involved in owning a home". Lucky you that you can afford to save for a deposit, but I bet there are a lot more people in my boat than yours. The only way we would be able to afford to buy is if one of my old aunts dies and left me some money (god forbid), or if 100% mortgages were brought back.

I acknowledge that there are people out there who are high risk and who may never be able to afford the mortgage, but if they want the housing market to open up again, then they need to bring it back, but perhaps with stricter criteria.

i agree - im in a similar situation (and i know of many others who are too)iv got a mortgage (101% in 2007) where iv currently paid off around £4000. due to mortgage and all other household and general living costs, saving for a 25% deposit will take years. even a 10% deposit will be a long time.

bring back 100% mortages with strict conditions and also 95% mortgages with decent rates!!!!

pretty please.........:)

tara747

weehev wrote: »

i agree - im in a similar situation (and i know of many others who are too)iv got a mortgage (101% in 2007) where iv currently paid off around £4000. due to mortgage and all other household and general living costs, saving for a 25% deposit will take years. even a 10% deposit will be a long time.

bring back 100% mortages with strict conditions and also 95% mortgages with decent rates!!!!

pretty please.........:)

If you bought in 2007 you are probably kicking yourself... the £4,000 you've paid off the mortgage won't make a dent in your negative equity.

DVardysShadow

Mum_of_3 wrote: »

Are you seriously suggesting that a couple on average wages (which around here believe it or not is about £20k) and already renting and therefore incurring away-from-parents living expenses are meant to save £25% of £135k? (£33,750 :eek:) By the time most people have saved that the prices of houses have increased and the goalposts have moved yet again, a couple both working full-time may be able to save that at a stretch, but what about a single person, how the heck are they ever meant to save that much?

Strangely enough, in economies where high percentage deposits are required, house prices seem much more stable.

Trouble comes for house buyers, the economy and ultimately the banks themselves when lenders have too much money to pump into housing - so they up the LTV to 100% and add some more just to shift more money into their lending portfolios. This is the factor which puts house prices into an upward spiral, giving the illusion that there is no limit to the amount you can lend into the housing market. It also has the tendency to stop lending to the productive parts of the economy - reducing the employment opportunities for the average wage couple.

weehev

tara747 wrote: »

If you bought in 2007 you are probably kicking yourself... the £4,000 you've paid off the mortgage won't make a dent in your negative equity.

i dont have negative equity due to buying a wreck and developing it. however yes i am still kicking myself as i will not make anywhere near as much as i would of had the market not crumbled!!