Large Deposit Requirements Exclude a Generation of FTB's

Graham_Devon

MoneyMiser wrote: »

But surely you agree that a 5% deposit, regardless of house price is much more affordable for FTB's than a 10% - 25% deposit.

MM

Yes. But then so is 100%, 110% etc.

As I said earlier, 10% is perfectly acceptable in my opinion....especially so when house prices have aligned with real affordability.

IveSeenTheLight

Graham_Devon wrote: »

Yes. But then so is 100%, 110% etc.

As I said earlier, 10% is perfectly acceptable in my opinion....especially so when house prices have aligned with real affordability.

If and when prices start dropping with regularity again, will you be fighting for 10% products when they are removed by the lenders?

Graham_Devon

IveSeenTheLight wrote: »

If and when prices start dropping with regularity again, will you be fighting for 10% products when they are removed by the lenders?

You keep saying this kind of thing. I keep saying the same thing in response, as well as others.

We know it will be difficult during the falls.

But after that, it will be easier, for ALL concerned.

IveSeenTheLight

Graham_Devon wrote: »

You keep saying this kind of thing. I keep saying the same thing in response, as well as others.

We know it will be difficult during the falls.

But after that, it will be easier, for ALL concerned.

Ok Graham, After the falls in 2008, when did better mortgage product come back on to the market?

From recollection, it was only after house prices showed a sustained increase throughout 2009.

Even now people would complain that although the better mortgage product are back in the market, they are still not good value historically (when compared to the BoE rate)

Graham_Devon

IveSeenTheLight wrote: »

Ok Graham, After the falls in 2008, when did better mortgage product come back on to the market?

From recollection, it was only after house prices showed a sustained increase throughout 2009.

Even now people would complain that although the better mortgage product are back in the market, they are still not good value historically (when compared to the BoE rate)

After QE was started.

IveSeenTheLight

Graham_Devon wrote: »

After QE was started.

But in relation to when house prices were falling, troughed or rising?

Graham_Devon

IveSeenTheLight wrote: »

But in relation to when house prices were falling, troughed or rising?

LOL.

ISTL. It's clear you don't want prices to fall.

What I find weird, is that the outlook has always been "well some people will never be able to afford homes, thats the way it is" along with "only 30% need to be able to afford for prices to rise".

Now, all of a sudden, yourself, and others who have been saying these things seem to have dumped the "some people will never be able to afford homes" line as a response to the problems with rising prices, and instead, have become a champion of the FTB.

Trouble is, the majority of FTB's don't want your championing. They want lower prices. The polls have been done, it's all over the comments in news articles.

All it is, is you fear price falls, but converse in a way which suggests you are all for the FTB all of a sudden, and are concerned as to the costs of mortgages, and their ability to save.

Sure, the negative with falling prices is less, and tighter, mortgage deals. I think we all know that and no one is arguing that with you. But the benefits, at the end, far outweigh the negatives.

We've got through price falls before, we'll get through them again. I just find it annoying that the arguments that have always been put forward about FTB lending have now been dropped as prices are falling and suddenly, all those arguments have vapourised as many simply don't like the idea of falls, so NEED lax lending back on the scene. You've already got halting of repo's, lowest rates in history, SMI, QE....it can't bolster it up. Lax lending would certainly help, but to be hoenst, I see it as a little pointless now, as it's just creating bigger problems for us all...for the chance of a short sighted increase in prices.

davilown

MoneyMiser wrote: »

The way I view it, is that a FTB's first home does not need to be their dream home, it is merely a stepping stone.

MM

Fair call, but many FTBs like myself want the home of our dreams now, we can save the deposits and don't want the stepping stones.

IveSeenTheLight

Graham_Devon wrote: »

LOL.

ISTL. It's clear you don't want prices to fall.

One thing is clear, you don't want to answer the simple question.
Probably because you don't like the answer.

The simple thing is we've explained time and time again that if you want property to be more affordable to more people then you need more supply of properties and access to credit.

You can't comprehend that though, it's just one way only which is unlikely to come to fruition.

I can handle prices lowering, but long term that not likely.
If you do get the short term drops you wish for, were simply saying that the way the lenders work, they'll restrict the credit supply and make even less options for those that would like to buy.

MiserlyMartin

HAMISH_MCTAVISH wrote: »

The one thing that first time buyers pray for to help them achieve their goal will, ironically, probably make the situation even worse.

Hamish!!! You're not still here trying to convince us that the market isn't falling....

oh wait you admit it is falling now so are posting about the injustices of it. Stop pretending to care about the plight of first time buyers when all you are concerned about is your BTL 'portfolio' and the amount of money you will lose.