abbey ups mortgage limit by 5 times!

Rgc_3

Its absolute madness

its designed to falsely inflate the property market ...... the real answer is to build alot more affordable houses to stabilise the market(reduce supply and demand )

going2die_rich

Rgc wrote:

Its absolute madness

its designed to falsely inflate the property market ...... the real answer is to build alot more affordable houses to stabilise the market(reduce supply and demand )

But more BTL investors will just buy any newer cheaper properties available and simply end up out bidding first time buyers.

Also a lot more newer houses being available now would drop the house prices leaving people with negative value houses compared to their mortgages.

Doesn't bother me but I am sure it would bother others. A good way to wipe 20% or so off most homeowners net worth and bring prices back to a more reasonable level. I like your building idea, either that or tax the BTL owners heavily, either suits me

Rgc_3

going2die_rich wrote:

But more BTL investors will just buy any newer cheaper properties available and simply end up out bidding first time buyers.

Also a lot more newer houses being available now would drop the house prices leaving people with negative value houses compared to their mortgages.

Doesn't bother me but I am sure it would bother others. A good way to wipe 20% or so off most homeowners net worth and bring prices back to a more reasonable level. I like your building idea, either that or tax the BTL owners heavily, either suits me

I agree with you on the neg equity aspect but i just feel that a house is for living in and not a commodity to be brokered(and yes i know thats an idealistic point of view).....but the situation now is crazy and needs addressed.

My idea is for more council built housing to initially rent then buy.. but the difference this time is that any sales rev would be ploughed right back into more house builds and it becomes a self financing project(yes thats oversimplified but fundamentally it is nt flawed but requires details ironed out(a contingency to deal with neg equity being the obvious one)


the current system is flawed which is why today some people will need to take five times there income!!

cheers:beer:

Big_O

You are of course assuming there's land to build new builds in the South East on. Now, you may not mind having the green belts concreted over, but there's plenty that do...

angeldeelite

i live in Edinburgh where house prices average £230k. the only way i would ever get on the propery market is for someone to give me 5x my salary.

Rgc_3

Big_O wrote:

You are of course assuming there's land to build new builds in the South East on. Now, you may not mind having the green belts concreted over, but there's plenty that do...

I was born and bred in the countryside so yes i want the green belts saved as much as the next person.....look around your area and i gaurantee you ll find old warehouses etc doing nowt .....of course their is a land issue in alot of areas but if it meant a decent lifestyle alot of people would migrate....or do we just keep going as is??

Rgc_3

angeldeelite wrote:

i live in Edinburgh where house prices average £230k. the only way i would ever get on the propery market is for someone to give me 5x my salary.

Hi Angeld

Anything ive written has edinburgh very much in mind as its my home too:j Im not suggesting for a second we put council housing on Arthurs seat:rotfl: but look around sighthill,offshoots of the london road plots in and around georgie and of course there is tynecastle park:rotfl: all could be built on(ok not tynecastle

There is a serious space issue in edinburgh city centre but some of the villages / towns bordering edinburgh could do with upgrading(Id happily live in musselburgh for example)

Prices are horrendious in edinburgh and even the traditionally cheap areas are now demanding silly money

cheers:beer:

Claire_DC

My fiance has borrowed 5.3 times his salary, i didn't want to be financially linked to him until i have cleared debts so it's in his salary only and he earns about 12k a year currently. Our house cost 75k, and his father gave us 11k as a deposit so we could afford the deposit, our mortgage is 64k and our repayments at the moment are £301 a month, which is a hell of a lot less than the £500 a month we would be paying private landlords for renting a house in this area.

I also put money towards the bills etc, so although on paper it looks like he shouldn't have been lent so much, there are other factors that should be (and were) taken into account with regards to my contributions to the househould bills.

If prices crash.. then so be it, we didn't buy a house to make a living, we bought it because we wanted a home that we could live in, where we would not be paying for somebody else to own a home, at a higher cost to ourselves. So long as we have our home then that is all that matters to us, and should be all that matters to most people.

Besides, surely if there's a crash.. even though our house will be worth less, our mortgage will be enough for a better house at a lesser price (if what i have read on a forum is correct that is) and we're already used to paying for this mortgage amount.

Penelope_Penguin

angeldeelite wrote:

i live in Edinburgh where house prices average £230k. the only way i would ever get on the propery market is for someone to give me 5x my salary.

Hi, my sister lives in Edinburgh, I'm in England. Having discussed things with her, it seems that the Scottish sealed bid system, while lauded by many, falsely inflates house prices. You put in rational bids and lose several houses in a row. You then see a house that you love, and need to move soon as you have a fixed agreement to sell your property. You put in a bid above what is reasonable for that property, as it's imperative that you have it. House prices rise.

Is there a flaw in my arguement?

I appreciate this is slightly off topic, but this offering more money on mortgages is another sticking plaster solution to the problem of first time buyers not being able to afford to buy. IME it's buy-to-let speculators buying up "first time" properties, that are pricing FTBs out of the market, and adding to house price inflation, which only benefits those trading down or out of property.

Penny. x

mystic_trev

Claire_DC wrote:

Besides, surely if there's a crash.. even though our house will be worth less, our mortgage will be enough for a better house at a lesser price (if what i have read on a forum is correct that is) and we're already used to paying for this mortgage amount.

I'm afraid it dosen't work like that! If (say) house prices fell by 20% your £75,000 home would be worth £60,000. You have a mortgage of £64,000 so therefore "negative equity" of £4,000 and you wouldn't be able to move until you'd paid that off to the lender. I remember the last crash all too well. Many people were left in this situation, and many others lost their homes.