House price reality

Batchy

dizziblonde wrote: »

I don't get where this "thou cannot get a mortgage" thing is coming from to be honest. We bought last month - got a mortgage with minimal issues really as FTBs with a 10% deposit - and considering my income's a total disregard for mortgage purposes anyway and, well I've got student-era financial mistakes in my past... heard all the apocalyptic nonsense about how impossible it was going to be for us to get one and it was remarkably uneventful really. We could have probably even got one of the local building society's 95% deals - just not on the income multiple we needed - and got a slightly smaller place.

As it is, works out at about £50 a month less on the mortgage than to rent the identical house three doors down that we were renting, and yes, interest rates will go up when our 5 year fixed finishes - but we've planned around that because I'm old enough to remember interest rates going nuts in the past. Other stuff's now selling round here fairly steadily as well, after sitting stagnant for a year or so - things are moving around here, but I suspect it's partially due to a tram extension that was looking dicey being given the official "it's ok you've escaped the budget cuts" seal of approval.

If the financial fantasy value of the house goes down in the short term - it goes down... ultimately it only matters when you actually come to sell and get the money in the bank anyway - and since it's a long-term move for us - I'm not worried. Plus the freedom from amateur idiot buy to let landlords not wanting to do repairs, from letting agents treating you like the scum of the earth and sending you letters reminding you to clean your house if you want your deposit back (we seriously recieved one of these the other day) and the constant "is the landlord going to decide to sell and kick us out" threat of rental is utterly priceless to be honest. I didn't realise how badly that dragged you down until we completed and all of a sudden the constant worry of what will break and we'll have to fight to get the LL to fix next was lifted from my shoulders.

Mortgages are out there - they're just not offering 300k with no deposit for you to buy a garden shed anymore.

SPOT ON, couldnt have said it better myself

jimibaboza

dizziblonde wrote: »

I don't get where this "thou cannot get a mortgage" thing is coming from to be honest. We bought last month - got a mortgage with minimal issues really as FTBs with a 10% deposit - and considering my income's a total disregard for mortgage purposes anyway and, well I've got student-era financial mistakes in my past... heard all the apocalyptic nonsense about how impossible it was going to be for us to get one and it was remarkably uneventful really. We could have probably even got one of the local building society's 95% deals - just not on the income multiple we needed - and got a slightly smaller place.

<snip>/QUOTE]
It is easy enough to get a mortgage if you have a large deposit. This is because is anything goes wrong then the bank will simply keep the money. Try buying that house without that nice little deposit and you will see just how what the bank thinks of you.

First time buyers quite often do not have a nest egg to rely on. This causes problems as they now cannot get a mortgage due to the stricter lending criteria and the fact the prices have been driven up by nearly a decade of people being able to get a mortgage with nothing which means that saving for a deposit is now beyond them.

CRASH_BANG_WALLOP

dizziblonde wrote: »

I don't get where this "thou cannot get a mortgage" thing is coming from to be honest. We bought last month - got a mortgage with minimal issues really as FTBs with a 10% deposit - and considering my income's a total disregard for mortgage purposes anyway and, well I've got student-era financial mistakes in my past... heard all the apocalyptic nonsense about how impossible it was going to be for us to get one and it was remarkably uneventful really. We could have probably even got one of the local building society's 95% deals - just not on the income multiple we needed - and got a slightly smaller place.

As it is, works out at about £50 a month less on the mortgage than to rent the identical house three doors down that we were renting, and yes, interest rates will go up when our 5 year fixed finishes - but we've planned around that because I'm old enough to remember interest rates going nuts in the past. Other stuff's now selling round here fairly steadily as well, after sitting stagnant for a year or so - things are moving around here, but I suspect it's partially due to a tram extension that was looking dicey being given the official "it's ok you've escaped the budget cuts" seal of approval.

If the financial fantasy value of the house goes down in the short term - it goes down... ultimately it only matters when you actually come to sell and get the money in the bank anyway - and since it's a long-term move for us - I'm not worried. Plus the freedom from amateur idiot buy to let landlords not wanting to do repairs, from letting agents treating you like the scum of the earth and sending you letters reminding you to clean your house if you want your deposit back (we seriously recieved one of these the other day) and the constant "is the landlord going to decide to sell and kick us out" threat of rental is utterly priceless to be honest. I didn't realise how badly that dragged you down until we completed and all of a sudden the constant worry of what will break and we'll have to fight to get the LL to fix next was lifted from my shoulders.

Mortgages are out there - they're just not offering 300k with no deposit for you to buy a garden shed anymore.

so the cml are a bunch of liars then and shouldn't be complaining. get real

FTBFun

jimibaboza wrote: »

It is easy enough to get a mortgage if you have a large deposit. This is because is anything goes wrong then the bank will simply keep the money. Try buying that house without that nice little deposit and you will see just how what the bank thinks of you.

First time buyers quite often do not have a nest egg to rely on. This causes problems as they now cannot get a mortgage due to the stricter lending criteria and the fact the prices have been driven up by nearly a decade of people being able to get a mortgage with nothing which means that saving for a deposit is now beyond them.

She has a 10% deposit - bending the truth somewhat to call that a "large deposit".

I have a feeling you didn't even bother reading that post.

Pete111

FTBFun wrote: »

She has a 10% deposit - bending the truth somewhat to call that a "large deposit".

I have a feeling you didn't even bother reading that post.

Quite

I would add that to assert that 'First time buyers quite often do not have a nest egg to rely on' is also innacurate.

People trying to buy a house without a nest egg (or 'deposit' as these sums are otherwise known) are not FTB's -they are people who shouldn't be buying a house in the first place.

Remember also, although 100% mortgages were surely popular for a few years, most people still put a deposit down before the crash (I did in 2004 and again in 2007) If you follow the stats you will see that the house price rises when they were a real factor (2005-2008) have largely been reversed in many areas.

Finally Crash bang wallop. I don't know about the others but I'm far more interested in real life tales on this subject from individuals than yet another raft of predictions and faceless stats...as such I think Dizziblondes post is very useful!

CRASH_BANG_WALLOP

Pete111 wrote: »

Quite

.

Finally Crash bang wallop. I don't know about the others but I'm far more interested in real life tales on this subject from individuals than yet another raft of predictions and faceless stats...as such I think Dizziblondes post is very useful!

so the cml are a bunch of liars? is that what you are saying? they complain about the lack of lending daily. so they are telling fibs eh? silly me. you take as gospel someones tale on an internet forum but dimiss the council of mortgage lenders?

Pete111

CRASH_BANG_WALLOP wrote: »

so the cml are a bunch of liars? is that what you are saying? they complain about the lack of lending daily. so they are telling fibs eh? silly me. you take as gospel someones tale on an internet forum but dimiss the council of mortgage lenders?

I tell you what - why don't the rest of us get on with debating the issue in a vaguely sensible way whilst you toddle off and take your rather obvious and pretty tired straw man baiting technique with you

Deal?

[Deleted User]

Sibley wrote: »

To be fair people can only comment on what they see.
As you know my house is near Maidstone in Kent.

Property prices have not changed since 2007.
My best friend just sold a manky place in Ealing London (2 bed) for nearly £300k. It was on the market only a short while.

I do see houses on the market a while but it seems the sellers have the attitude if it sells it sells and if not no problem. We will stay put.

Take my house for example. I would sell if the price was right. Otherwise keep it rented out. No big deal. I have a figure in mind that I want for my house. It makes no difference to me what monthly figures say. Even if prices went down 10% I could just stay as I am now and wait until they rose again.

Saying that I expect by June next year all these drops will be wiped out. People just don't want to sell now. Buyers can't force somebody to drop the price no matter what they say.

I agree. I moved around this time last year. It wasn't planned - I saw a house, fell in love with it and wanted it at any price (I would have paid over valuation, but luckily got it for less than valuation). That house had only been on the market about a week. Sellers had been frightened by the stories of a crash and practically gave the house away. I didn't even have to bargain.

I was a cash buyer.

I then had to sell my old house. It was in a popular area and we were inundated with viewers. I think we had about 10 people that desperately wanted to buy the house at above asking price even but they either couldn't sell their own house or couldn't get a mortgage. Dropping the price wouldn't have sold the house faster - just had to wait for someone to come along that was in a position to buy. And they did within about 4 weeks.

The house next door to my new house sold in the summer - also within a week for asking price. Again to a cash buyer.

So it's not a case that people don't want to buy at asking price, but they just aren't in a position to (not that they can't afford it but rather they're stuck in a chain with their own house). If you aren't in a rush to sell I think it makes sense to sit tight - provided people have been showing an interest in your house.

CRASH_BANG_WALLOP

Deleted_User wrote: »

I agree. I moved around this time last year. It wasn't planned - I saw a house, fell in love with it and wanted it at any price (I would have paid over valuation, but luckily got it for less than valuation). That house had only been on the market about a week. Sellers had been frightened by the stories of a crash and practically gave the house away. I didn't even have to bargain.

I was a cash buyer.

I then had to sell my old house. It was in a popular area and we were inundated with viewers. I think we had about 10 people that desperately wanted to buy the house at above asking price even but they either couldn't sell their own house or couldn't get a mortgage. Dropping the price wouldn't have sold the house faster - just had to wait for someone to come along that was in a position to buy. And they did within about 4 weeks.

The house next door to my new house sold in the summer - also within a week for asking price. Again to a cash buyer.

So it's not a case that people don't want to buy at asking price, but they just aren't in a position to (not that they can't afford it but rather they're stuck in a chain with their own house). If you aren't in a rush to sell I think it makes sense to sit tight - provided people have been showing an interest in your house.

i stopped reading old boy once you said you agreed with sibley

myhouse_2

Sibley wrote: »

I do see houses on the market a while but it seems the sellers have the attitude if it sells it sells and if not no problem. We will stay put.

Take my house for example. I would sell if the price was right. Otherwise keep it rented out. No big deal. I have a figure in mind that I want for my house. It makes no difference to me what monthly figures say. Even if prices went down 10% I could just stay as I am now and wait until they rose again.

Saying that I expect by June next year all these drops will be wiped out. People just don't want to sell now. Buyers can't force somebody to drop the price no matter what they say.

This makes no sense - or at least it makes sense in your case but not in the general market. Buyers don't need to directly force people to drop their price. The drops come from those who need to sell their house for any number of reasons. The price you have in mind is meaningless if those around you need to sell and the market only gives them SibleyDreamPrice minus x.
I have a price in mind for my RBS shares and can afford to wait for that price. Not ever likely to sell them at my dream price though.