First Time Buyers At 20 Year Low

doire_2

http://www.moneysavingexpert.com/news/mortgages/2010/04/first-time-buyers-at-20-year-low?utm_source=forum&utm_medium=sidebar&utm_campaign=box

"This shortfall makes it unlikely the increased stamp duty allowance will have any effect on young people's prospects for home ownership

StevieJ

You mean the market is rising without the fuel that is Ftb's what happens when deposit requirements are eased and they all come back :eek:

Really2

First Time Buyers At 20 Year Low

What the average age now 29? What happened when they were 9 then.

doire_2

StevieJ wrote: »

You mean the market is rising without the fuel that is Ftb's what happens when deposit requirements are eased and they all come back :eek:

These FTB wont have access to 100% or 125% mortgages like they did during the boom and remember liar loans are a thing of the past.

No FTB? No foundations

StevieJ

doire wrote: »

These FTB wont have access to 100% or 125% mortgages like they did during the boom and remember liar loans are a thing of the past.

No FTB? No foundations

I am sure they will be able to get that 5% to 10% deposit together, do MIG's still exist?

http://www.mortgage-terms.co.uk/mortgage-glossary/M/mig-mortgage-indemnity-guarantee.html

Conrad

The lack of interest only above 75% is hindering a lot of ftb in my experience.

Classic case this morning. Whilst wife on maternity and unsecured debt repayments being made it suited the couple to go for interest only for the first 2 years. Ok not ideal, but perfectly ok, I myself did this when starting out and it suits thier finances for 2 years. In any event you pay a pitifull amount of capital in the first 2 years on a C&I basis. After 2 years she's back at work on £25k and debts gone so they can pound the capital.

No lender except Halifax would do it.

Cannon_Fodder

StevieJ wrote: »

You mean the market is rising without the fuel that is Ftb's what happens when deposit requirements are eased and they all come back

Average prices are, to some degree, being held up by the absence, relative to 'normal' times, of FTBs buying the lower-end stock. 2nd+ time-buyers tend toward the above average end of stock, hence some price rises in some areas.

Plus, out of the small numbers who count as FTB, there are those with massive deposits, who buy above-average properties (because the average age of FTB has gone up, some jump the rungs of the ladder as they are ready to start their family etc), leaving even fewer 'true' FTBs at the lower end, further skewing the market stats.

Should 'true' FTBs be able to re-enter the market in nearer to normal numbers, that would have the effect of bringing averages down, initially.

When volumes grow higher, the demand effect would in time allow prices to rise - which is what your comment is aimed at, rightly, but imo prematurely.

Because at the moment there is plenty of property 'with issues' that is not selling for there to be little demand effect. 2nd+ time-buyers are discerning enough to spot and avoid issues. And there are too few FTBs to fill that gap.

In the past, there would have been FTBs who would blindly purchase despite issues, not knowing any better, or deliberately purchase, knowing better but getting a doer-upper bargain.

Today, such property is sitting for months on the market because of the inability to raise sufficient deposit etc.


i.e. the absence of FTBs is masking the true price drops around the market.

ruggedtoast

Conrad wrote: »

. After 2 years she's back at work on £25k and debts gone so they can pound the capital.

No lender except Halifax would do it.

Oh really. What happened to the child then; did they sell it?

Mr_Matey

A few potential FTBers I know can get a mortgage and have deposits, but are choosing not to buy due to prices still being too high and not wanting to be tied to a place.

Job security is probably also a key factor for a lot of FTBers right now. The recession hit young jobs more than old.

chucky

doire wrote: »

http://www.moneysavingexpert.com/news/mortgages/2010/04/first-time-buyers-at-20-year-low?utm_source=forum&utm_medium=sidebar&utm_campaign=box

what a surprise FTB's are at their lowest in the same year that we've had the deepest recession since the Second World War.

the average age of an FTB is actually lower now than it was in 1990... and that's with deposit requirements being at their highest... :eek:

Yakubu22

Mr_Matey wrote: »

A few potential FTBers I know can get a mortgage and have deposits, but are choosing not to buy due to prices still being too high and not wanting to be tied to a place.

Job security is probably also a key factor for a lot of FTBers right now. The recession hit young jobs more than old.

This is me -100% accurate