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Large Deposit Requirements Exclude a Generation of FTB's
Comments
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Graham_Devon wrote: »Hey, don't get me wrong. I'm not saying I don't disagree with you. Just you said it 20 times over now no matter what anyone says.
You could of course try to put your point across as to why you think prices will lower and banks will suddenly decide to keep low deposit requirements with low interest rates.
We had a correction in 2008, show us historically when this happened.
If you want to use QE as an excuse, do some research into the 90's to show when the lenders lowered the deposit and interest requirement during that correction.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »WOW, you can save more than £1k per month.
Maybe you should consider not buying until you can get the best rate ie. 40% deposit. It' would only take you another 7-8 months
So 15% deposit to 40% deposit within a year and a half.
At that rate you can buy this property outright in less than 7 years :T
The end of the day life is too short and I don't want to delay buying a home any long than needed.
As I say the plan right now is 15% as I spotted much better rates at 15% than 10%, the jumps to then 20-25-30% wasn't massively different, but the plan will be adapted as times change so if I need a high deposit I will save longer but I am not going to wait for 7 years.
The overall plan is to try and overpay in the early years to get the better rates sooner rather than later.
As it is I just want a home and to be able to afford my mortgage, I have no interest in them rising as it will have no benefit to me or anybody else.Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
IveSeenTheLight wrote: »You could of course try to put your point across as to why you think prices will lower and banks will suddenly decide to keep low deposit requirements with low interest rates.
We had a correction in 2008, show us historically when this happened.
If you want to use QE as an excuse, do some research into the 90's to show when the lenders lowered the deposit and interest requirement during that correction.
I bought a flat in 1992 with a 5% deposit.0 -
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I Bought in 96 with a 5% deposit and mortgage offered a 5% cash back. So basically it ws 100% as all you had to do was borrow the 5% and give back on completition. Rate was not great at about 7-8% but how it compared I cant remember. Within a few years though you could get a rate for about 4-5%. I was much better of buying in 96 for about 40% less than than what prices would have been in the late 80's when prices were high.
The reality is once the market sorts itself out lender will offer more competitive 90% rates and probably even 95%. I notice a few lenders are doing 95% again to FTB's.
I have kids and I would much rather in 10 years they could buy at 4x average wage with a 15-20% deposit than at 8-10x with a 5% deposit and a lower rate. A mortgage lasts for 25 years not 2-3 years.0 -
100% guaranteedIveSeenTheLight wrote: »One thing is clear, you don't want to answer the simple question.
Probably because you don't like the answer.0 -
I like this thread.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
go boil yer heed mctaveeshHAMISH_MCTAVISH wrote: »I like this thread.0 -
Dirk_Rambo wrote: »go boil yer heed mctaveesh
Still like this thread.:D“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »I like this thread.
What a Fantastic repost. I guess the game really is up.0
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