FTBs, make your voice heard. Would YOU prefer lower prices/rates/laxer mortgage rules

carolt

There are frequent posts on this forum by various posters (Conrad, Hamish...) claiming to be desolate on behalf of us FTBs that we are currently, or are about to be, priced out of the housing market and unable to buy, due to either high interest rates for FTBs relative to other buyers, and/or the FSA's proposed new restrictions on mortgages, which will make it harder for people to lie on their mortgage appplications and take out huge, unaffordable mortgages.

Now, as a prospective FTB, I find their analyses somewhat strange, as I don't feel locked out of the market by either high interest rates - after all, current rates are at historical lows - nor by the lack of mortgages at 6 X my salary that I can lie on the form about, as strangely I'd rather get an affordable mortgage honestly.

The one thing that Hamish and Conrad et al never, ever, ever suggest might help would-be FTBs such as myself is LOWER HOUSE PRICES, for some reason - even though that is, personally, the one thing that would help me buy a suitable house.

I'm quite happy with both the rates and also with stricter requirements for borrowing - I don't desire the freedom to cripple myself financially, and even more so, I don't want others with more greed than sense to have that freedom either, as I shall only have to pay to bail them out a few years down the line when they inevitable come a cropper.

So no, in my case, what I, as an FTB would like is one thing only - LOWER PRICES.

But am I alone?

Please vote - BUT ONLY IF YOU ARE A FTB - ALL VOTES WILL BE PUBLIC AND MULTIPLE VOTES BY HAMISH'S SOCKIES PRETENDING TO BE FTBs WILL BE IGNORED.

So this is your chance to tell the powers-that-be what YOU really want (not what others with strong vested interests in keeping house prices high claim you would like) - is it short-term lower interest rates, a return to lax mortgage lending, or just lower house prices?


Thanks.:)

DervProf

There`ll be at least one vote for lax mortgage lending. I bet it will come from Aberdeen.

I know what I`d want if I were a FTB`er, because I can see beyond next month`s mortgage payment.

Generali

A return to lax mortgage lending?

Mortgage lending requirements are too strict in the UK at present. You should be able to buy with a 5% deposit.

Bullfighter

Generali wrote: »

Mortgage lending requirements are too strict in the UK at present. You should be able to buy with a 5% deposit.

Just as long as the average house price is back to the 1999/2000 levels then a 5% deposit sounds fine.

carolt

Cheaper house prices

Generali wrote: »

Mortgage lending requirements are too strict in the UK at present. You should be able to buy with a 5% deposit.

Generali, hate to say it, but you do not count, as you do not speak for UK FTBs - you live in Australia, and as far as I know, have no plans to return.

You can say what you think would help the economy, but are not entitled to vote on a poll on the opinions of UK FTBs.

leveller2911

Cheaper house prices

For me its lower prices , personally I think the 3x, 3.5 x multiples are about right, its a tried and tested method. Glad there are no more 100% mortgages and personally I would like to see the end of 95% AND 90% too.
IMO when you work your nuts off for years to save for a decent deposit it makes you more careful when chosing the right time to buy and the right product. I know far too many numpties who had little or no deposit who just wanted to "keep up with the Jones" ,far too easy to jump in when spending other peoples money.

I hope interest only gets the chop for good too........ So LOWER AFFORDABLE PRICES gets my vote.......

DervProf

Generali wrote: »

Mortgage lending requirements are too strict in the UK at present. You should be able to buy with a 5% deposit.

Why 5% ?

What is your reasoning for 5% ?

silvercar

Mid eighties and base rates were high, mortgage interest rates were 10-16% for a while and standard lending criteria was 2.5 x joint income, 3.5 x single income. So with interest rates very low in the short term and expected to be reasonably low in the long term, I would have thought there was room for some relaxation of the standard criteria.

Generali

A return to lax mortgage lending?

carolt wrote: »

Generali, hate to say it, but you do not count, as you do not speak for UK FTBs - you live in Australia, and as far as I know, have no plans to return.

You can say what you think would help the economy, but are not entitled to vote on a poll on the opinions of UK FTBs.

No, I just didn't vote as you wanted. If I voted for option 1 then you'd have been happy about it.

A big fall in house prices right now would cause big problems to an already fragile banking system.

@DervProf - 5% is enough so that missed payments alone are highly unlikely to tip the owner into negative equity. 6 months should be enough time for a bank to realise you can't pay your mortgage and repossess and if your mortgage rate is < 10% you won't get into negative equity in that time unless house prices fall. It also means that a buyer has some 'skin in the game' but at the same time is a small enough amount on a FTB-typical house/flat that most aspirant owners with a large enough income to support their aspiration should be able to save it.

5% should be genuine savings too, money that the borrower can show is made up from a difference between earning and spending.

Graham_Devon

Cheaper house prices

As I have not bought a house fully, I classed myself as a potential FTB, and voted accordingly

System

I don't think what an FTB would prefer really matters does it?

All we're hearing is that deposit requirements for reasonable rates are too high, prices are not going to reduce enough to put a decent dent in those desposits.