FTB Discrimination "incredibly unfair", now pay thousands more for mortgages

DervProf

Cleaver wrote: »

Maybe it's just me, but I see that as a decent, average (looking at the last decade) type of deal.

A nice £135k terrace near me (or 'round my way', as I believe is the term on here) would require about £15,000 to get you in and a monthly repayment of about £700. Doesn't seem too bad really considering this will probably be the highest mortgage rate they ever pay.

Agreed.

I`ll suggest that paying a future rate of about 7% is not out of the question. I admit that I`m suggesting that figure purely on my own experience.

Of course, Hamish thinks that`s a bad deal, and the FTB`er should only be paying £500 per month. I`m sure that if his wishes were granted, the bank would try and make up for it elsewhere. Maybe they could start paying -2% on savings accounts. Afterall, it`s bears and savers that got us into this mess, isn`t it Hamish ?

System

Cleaver wrote: »

Maybe it's just me, but I see that as a decent, average (looking at the last decade) type of deal.

A nice £135k terrace near me (or 'round my way', as I believe is the term on here) would require about £15,000 to get you in and a monthly repayment of about £700. Doesn't seem too bad really considering this will probably be the highest mortgage rate they ever pay.

Ahh but I bet they could rent an identical property for £699! Renting is cheaper!!

Mr_Mumble

Tall people are paying hundreds of pounds a year more to insure the same car as other insurees, creating a generation of second-class car owners.

Experts say it is "incredibly unfair" on the tall that they are paying so much more for the same level of car insurance, just because they are male rather than female.

Could you imagine this being printed in a paper? The conflation of issues - low deposit/FTB or tall/male makes no sense to me.

N.B. of course not all tall people are male but then not all FTBers have a meager deposit either.

HAMISH_MCTAVISH

Cleaver wrote: »

anyone who was rubbing their hands with glee for a 50% crash knew that any type of housing market crash would lead to restrictions in credit and difficulty for FTBers to buy a house.

No, I don't think they did.

As a rule, most bears assumed that this crash would play out pretty much like the last one, where mortgage funding was relatively freely available throughout, there was certainly no credit crisis that froze FTB's out, and housebuilding kept going pretty much at normal levels, so the market fell for a couple of years and then stagnated for almost a decade.....

Instead, what they got was mortgage rationing, FTB's locked out of the market whilst investors and those with equity aren't, supply falling off a cliff and rapidly rebounding prices, housebuilding numbers at record lows sowing the seeds of the next boom, minimal numbers of forced sales, deposits in savings accounts shrinking in real terms, whilst population keeps growing and rents keep soaring. In short, absolutely NOTHING like what they expected.

Which is why so many of them walk around with Botoxface.... An almost permanent look of surprise every time a house price index rises.

kinda with Derv, I think a few years of tight credit might do everyone a favour. FTBers can buy a house, they just need to meet high deposit and high interest rates. Those that can afford this can buy now. If the majority can't, house prices fall to a level where it becomes affordable and then people start buying again. .

Except it hasn't quite worked out that way.....

Instead of prices falling and stagnating for years, supply dried up and prices rebounded strongly.

Housebuilding numbers fell off a cliff, population continues to increase, and rental prices are soaring.

And all of that with the tightest mortgage lending standards, worst financial crisis, and deepest recession in living memory.

An entire generation of FTB's is being squeezed relentlessly by higher mortgage funding costs, higher deposit requirements, higher rents, low returns on savings, and the shortage of housing means they won't be seeing any significant price falls.... Certainly nowhere near enough to level the playing field against the extra lifetime housing costs they are incurring.

This credit crisis and crash hasn't helped FTB's at all. It's ruining their future. And the cavalier attitude of the bears on here towards it is absolutely despicable.

nearlynew

As prices continue to fall and deposits continue to grow, it's not looking too bad for potential FTBs.

HOUSE_PRICE_CRASH_GHOULS

Prices are NOT falling. Get used to it. Muppet.

Graham_Devon

HAMISH_MCTAVISH wrote: »

No, I don't think they did.

As a rule, most bears assumed that this crash would play out pretty much like the last one, where mortgage funding was relatively freely available throughout, there was certainly no credit crisis that froze FTB's out, and housebuilding kept going pretty much at normal levels, so the market fell for a couple of years and then stagnated for almost a decade.....

And of course, you knew different, which is why you told everyone so at the time before mortages dried up.

Oh...No...that didn't happen.

HAMISH_MCTAVISH wrote: »

An entire generation of FTB's is being squeezed relentlessly by higher mortgage funding costs, higher deposit requirements, higher rents, low returns on savings, and the shortage of housing means they won't be seeing any significant price falls.... Certainly nowhere near enough to level the playing field against the extra lifetime housing costs they are incurring.

Add on impending public sector cuts, tax increases, low wage inflation, benefit cuts, mortgage resuce cuts....and you have a recipe for?

Is it higher house prices hamish?

chucky

HOUSE_PRICE_CRASH_GHOULS wrote: »

Prices are NOT falling. Get used to it. Muppet.

great post

don't worry about numpty new - he's the entertainment around here :T

Procrastinator333

HOUSE_PRICE_CRASH_GHOULS wrote: »

Prices are NOT falling. Get used to it. Muppet.

Depends on your favoured index.

I think pretty much all will agree the 3 month average is the best for demonstrating current trend, so:

Last 3 months data:

LR: +0.8%
Halifax: +0.2%
Nationwide: -1.3%
Rightmove : -3.4%


I look at that as 2 of the 3 leading indexes are negative. The lagging index is positive.

Interpret the data how you wish, but to me, the last 3 months of data are pointing to a change of direction that is now pointing gently down. The halifax will be interesting this week. Might have all 3 leading indexes pointing down (though will need a -0.9 to do that). Not really room for much debate if that does happen*.

*That is, much room to debate that they are falling at that point in time. There will of course be endless space to debate where they will be a few months further down the line.

System

Procrastinator333 wrote: »

Depends on your favoured index.

I think pretty much all will agree the 3 month average is the best for demonstrating current trend, so:

Only since it was mentioned as negative in a report last week. Don't think it's ever been mentioned prior to that.