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

DervProf

julieq wrote: »

And ask a first time buyer this. Would you like a fall in prices to continue after you've bought a house?

No more than I`d like inceasing prices before I buy a house.

FTBFun

A return to lax mortgage lending?

Doctor_Gloom wrote: »

It's a great poll. You only have to look at how many people have contributed to see its continued popularity. It's up a massive 62 in favour now.

And it rather contrasts with Hamish's rubbish poll in which only 4 people voted. And 3 of those votes were made by himself.

That's a rather odd definition of massive you have yourself there. Mrs Gloom must be rather disappointed.

ukcarper

LilacPixie wrote: »

can we have a definition of 'lax mortgage lending' please. Do you mean return to subprime bankrupt 3 months ago now with 125% self cert mortgage for 8x income or do you mean a relaxation of the deposit requirments so you can get a decent rate with a 5 or 10% deposit. What about those who want to borrow a comfortable salary multiple like 2x joint, deposit requirments reduced for them?

3 bed semi around here 120k so 12k deposit 108k mortage 5.99% 2 year fix with clydsdale 25 year term would cost £186,293 according to their site. If prices fell say 20% but IR stayed same and so did my deposit house would be 96k mortgage amount 84k I would still only have an 87% LTV so would get the same 'deal' of 5.99% fixed 2 years 25 year term and would cost me £145117 over the term of the mortgage. Thats obviously a good saving but if lending requirments are so tight that I couldn't get an 87% LTV mortgage in the first place it means nothing.

IMO it needs to be a combanation. Prices need to correct in some areas banks need to be willing to lend higher ltv's especially to those seeking a small salary multiple. No one thing is going to make a difference.

I wouldn’t hold your breath waiting for a sensible reply I ask something similar pages back.

neas

Cheaper house prices

Will people be depressed if house prices stagnate instead of fall? I.e. just stay same for next 5 years? as you'd sit waiting and waiting wasting time where you could enjoy decorating, enjoy ripping out and upgrading your home paying off soemoene elses mortgage (who was lucky to buy alot cheaper than you granted.. but is in no rush to sell as you and others waiting to buy cheaper are paying his mortgage).

Its a funny system housing in england....those waiting to buy cheaper are maintaining the status quo... by paying the rent/mortgage of those people who own more than 1 house... enabling them to fully own said asset after a 15-20 year period. Unfortunately the vast majority of people arent willing to wait 5 years to get on the housing ladder so even those who resist will eventually succumb and buy a house (like myself )..... because who knows? we've seen the governments prop house prices up... and we all know they are important to some sort of economic recovery... so home owners are being supported while renters are well not so much supported.

The funny thing about moving into my own home.. i've realised something about houses. While people moan and whine about the cost of the house.... i'm not in a 'too' expensive area.... so worrying over 10-20k on price of house isnt worthwhile... its good to get it off but in the long term not a deal breaker. For example I want a new kitchen next year... gonna need at leas 6-7k and my new boiler cost 2.3k.... decorating and other costs would push total spend on the house as 10k. Would i get that money back from selling? not sure prob not... but its my home, mine .. and that feeling feels great... im starting to know the house intimately... like whats the walls made off, what was under those layers of wallpaper etc... feels you know mine.

Anyways just figured i'd add that nugget in. My 'wait' date was 3 years ago in 2007... i do hope some of you get what your after in the long run but question if you are willing to wait years and years more for it? Some people have no choice (no deposit etc) but is saving 10-20k off a house price really worth waiting 3 years for? oO

MoneyMiser

A return to lax mortgage lending?

LilacPixie wrote: »

can we have a definition of 'lax mortgage lending' please. Do you mean return to subprime bankrupt 3 months ago now with 125% self cert mortgage for 8x income or do you mean a relaxation of the deposit requirments so you can get a decent rate with a 5 or 10% deposit. What about those who want to borrow a comfortable salary multiple like 2x joint, deposit requirments reduced for them?

3 bed semi around here 120k so 12k deposit 108k mortage 5.99% 2 year fix with clydsdale 25 year term would cost £186,293 according to their site. If prices fell say 20% but IR stayed same and so did my deposit house would be 96k mortgage amount 84k I would still only have an 87% LTV so would get the same 'deal' of 5.99% fixed 2 years 25 year term and would cost me £145117 over the term of the mortgage. Thats obviously a good saving but if lending requirments are so tight that I couldn't get an 87% LTV mortgage in the first place it means nothing.

IMO it needs to be a combanation. Prices need to correct in some areas banks need to be willing to lend higher ltv's especially to those seeking a small salary multiple. No one thing is going to make a difference.

I completely agree with this.

THE_GHOULS_PARADISE

A return to lax mortgage lending?

Not scientific and not concise especially when it's been distirted with your 67 sockies. All media surveys point to only circa 25% wanting falls. Not that it will happen as Septemeber FOREX HPI. for Halifax was a clear +0.6%. Suck it in I guess.