Tighter lending rules mean 10-year wait for first-time buyers

neverdespairgirl

PasturesNew wrote: »

Well ... I think the clue is in there somewhere. If FTBs aren't buying at the bottom of the ladder, who is? It's called the bottom of the ladder (er, ponzi) because that's where you start out.

When we buy, we won't be buying at the bottom of the ladder - rather, buying a 4 bed flat we can live in for a very long time.

And we are FTB - not according to the govt. stamp duty thing, mind you, because OH inherited and then sold half a house.

PasturesNew

Harry_Powell wrote: »

Looks like there will be a large upsurge in the BTL market once people figure out that there is a going to be such a huge demand for decent rental properties while FTBers save up those deposits. With people having such a downer on traditional pensions, looks like property will be the investment of choice for many.

The deposits they need are higher.
LHA rates are coming down so it's not a gravy train any more.
HMO has been tightened up further, so it's not a gravy train any more.
Capital appreciation/HPI isn't going nuts, so it's not a gravy train any more.
CGT has changed, so it's not a gravy train any more.

Raggs_2

neverdespairgirl wrote: »

When we buy, we won't be buying at the bottom of the ladder - rather, buying a 4 bed flat we can live in for a very long time.

And we are FTB - not according to the govt. stamp duty thing, mind you, because OH inherited and then sold half a house.

With half a house sale, you should have a bit of a jump on the rest of us though.

And I agree on not tapping rich parents! My parents aren't exactly rich, but they each own their own (modest) property, and get by, but there's no way I'm asking them for anything, they need to be enjoying their lives that they've worked hard to get, not subsidising my life anymore.

doire_2

Raggs wrote: »

With half a house sale, you should have a bit of a jump on the rest of us though.

And I agree on not tapping rich parents! My parents aren't exactly rich, but they each own their own (modest) property, and get by, but there's no way I'm asking them for anything, they need to be enjoying their lives that they've worked hard to get, not subsidising my life anymore.

I agree. I wouldn't dare ask my parents for a helping hand. They should enjoy the lovely home and savings they built up. My wife and i have worked damned hard to save our deposit the past two years. If you cant save for a decent deposit then you shouldn't be let near a mortgage.

Idiophreak

doire wrote: »

If you cant save for a decent deposit then you shouldn't be let near a mortgage.

How about if you can't save a deposit because you're busy paying your rent on time every month?

FTBFun

Idiophreak wrote: »

How about if you can't save a deposit because you're busy paying your rent on time every month?

Make some sacrifices - either by moving to a cheaper flat or saving elsewhere.

MissMoneypenny

I think the 100% mortgages will come back. The banks are being cautious atm because they expect another house price fall and would rather the house buyer lost their own money if they try and walk away from their debts.

The higher rates for the bigger LTV, reflects the risk, but the lenders are being a lot more careful who they lend money to now. I’m not sure if the days of lending money to people who you wouldn’t normally lend a fiver of your own money to, will ever return.

MissMoneypenny

Idiophreak wrote: »

How about if you can't save a deposit because you're busy paying your rent on time every month?

Take a second job/move into a flat share/move back in with parents.

Percy1983

Its an interesting one, I do agree that it takes longer to get a deposit together now which in my case has changed my idea of what to buy.

5 years ago I would have been happy for a 2 bed terrace house, but now at the age of 26 (nearly 27) with a fiancee we have decided why buy at the bottom only to move in a year when we want children (before 30). So its wiser to save longer and go straight to the 3 bedroom semi we want to raise a family in.

So after being froze out fo the market for years, by the time I have been able to join the market the goal has changed.

ess0two

davilown wrote: »

Why should FTBs just be looking at the bottom of the ladder? I'm a FTB but I'll be buying a four bed semi/detatched house when I buy.
Why? Because I'll save a 25-30% deposit to be able to afford to buy it. £50k in 2-3yrs means no holidays, no new car, no new phones, no new computer etc.

As to Raggs suggestion that 5% is enough for a deposit, thats mad advice in the current climate where there is so much uncertainty in jobs as well as house prices.

You missed 'no life' off your list.