January Nationwide MoM -0.1% YoY -1.1%

bingobob777

Percy1983 wrote: »

To a point I would say the FTB home maybe changing as we are forced to buy later in life.

EG I have a friend who bought a 2 bed terrace in 2006 (typical FTB home I suppose) and he is now looking to move to a 3 bed home as his second child is on the way. Meanwhile I I didn't buy in 2006 but will be doing soon if all goes to plan, to which children won't be far behind (all being well), so we are going straight to the 3 bedroom houses which suite our needs.

In short as the age of the average FTB goes up the needs of the average FTB will change.

If the average FTB is buying all the 3 bed semis, who is buying all the 1 and 2 bed flats?

Batchy

bingobob777 wrote: »

So most FTB'ers are 35 year old middle managers. :rotfl:

They've managed to get a fixed rate of 4%, meaning they have 40%ish equity on there first house, using average price of 160k they have 64k deposit.

and, and

their household bills come to 270 a month?

So to sum up

First time buyers are 35 year old middle managers with 64k savings and outgoings of 270 a month on top of their mortgage?

Quite plainly, obviously utter bollox.

Where is the evidence for the 29% figure?

You need to get in the real world mate.

I did say FTBers DONT buy an average priced house, they would never expect too.

Funnily enough thou.

I am a recent FTB, 33, earn over 40k per annum, saved 15%+ deposit for a 85% deal with post office which WAS a 3.94% deal. Used excess savings to modernise and rennovate the house, the house was average price (but 3 bed detached in very nice area) but not an average style property. And would now put it well above average house value, so ive earn equity buy putting in some hard labour, and it was a lot of fun and still is (as im finishing bathroom this month).

No i'll admit im not an average FTBer but if you havent saved a 15% ish deposit... YOU WONT BE A FTBer either. 10% and your get stiffed up with a large rate... but 15% of 120k is about 17k thats all you need, 5k over a 10% deposit, with a scary interest rate of 6% plus... if you cant save that by the time your 34 your up !!!! creek really.

Its not utterly bollox, its just the way FTBers Roll. The opportunities have been there, yes rates have gone back up with post office but only to 4.29% hardly the end of the world.

If your hoping FTBers can buy a 50k 3 bed semi on a 15k salary with no deposit ie, 100% LTV. Just who do you think WONT be buying a house over that time. The little FTBer wont know whats hit him when he gets involved in a dutch auction or sealed bids. He will all of a sudden get very priced out by the investors looking for 5%+ yields.

Batchy

bingobob777 wrote: »

If the average FTB is buying all the 3 bed semis, who is buying all the 1 and 2 bed flats?

well its true, and I agree what people say about needs changing, with age.

I agree people will opt for 3 bed houses than 1 bed flats, however, I think they can still settle for terraced and semi's rather than all holding out for detached.

Location location location will be important thou.

Batchy

Also, what other household bills will there be on a 2 bed flat... for 120kish?
530pm mortgage
100pm council tax
40pm electic
40pm gas
20pm water
14pm tv licence
10pm insurance
40pm sky/phone/BB

thats 794... anything else?

then food too say 160pm but this is not really a housing bill is it? seriously? come on!!

bingobob777

Batchy wrote: »

You need to get in the real world mate.

I did say FTBers DONT buy an average priced house, they would never expect too.

Funnily enough thou.

I am a recent FTB, 33, earn over 40k per annum, saved 15%+ deposit for a 85% deal with post office which WAS a 3.94% deal. Used excess savings to modernise and rennovate the house, the house was average price (but 3 bed detached in very nice area) but not an average style property. And would now put it well above average house value, so ive earn equity buy putting in some hard labour, and it was a lot of fun and still is (as im finishing bathroom this month).

No i'll admit im not an average FTBer but if you havent saved a 15% ish deposit... YOU WONT BE A FTBer either. 10% and your get stiffed up with a large rate... but 15% of 120k is about 17k thats all you need, 5k over a 10% deposit, with a scary interest rate of 6% plus... if you cant save that by the time your 34 your up !!!! creek really.

Its not utterly bollox, its just the way FTBers Roll. The opportunities have been there, yes rates have gone back up with post office but only to 4.29% hardly the end of the world.

If your hoping FTBers can buy a 50k 3 bed semi on a 15k salary with no deposit ie, 100% LTV. Just who do you think WONT be buying a house over that time. The little FTBer wont know whats hit him when he gets involved in a dutch auction or sealed bids. He will all of a sudden get very priced out by the investors looking for 5%+ yields.

My point was the average FTB isn't on 40k+.
The average FTB can't earn the average wage as used in the report, because if he/she is who is earning less?

Anyway who cares, it's hometime:)

Batchy

AndyGuil wrote: »

Quite. A 1% increase on a 100K mortgage is an extra £1000 in a year.

Yes on an interest only, but thats not what the guy i was responding too started with in his calc, I assumed from his numbers he was working off a repayment mortgage over 25 years (the typical norm)

If you take a 25 year mortgage on a repayment. (i never base calcs on interest only as they are ridiculous and normally only good for BTLers looking for tax breaks)

Year 1 its 100k @1%
Year 2 its 98k @1%
Year 3 its 96k @1%
year 4 its 93k @1%
year 5 its 90k @1%
.
.
.
Year 25 its 4k @1%

By the time you get to year 25 ... its not going to basing the 1% on 100k still... so average your 83 per month out over the life of the mortgage thats the starting interest charge on the extra 1% at 100k... but the end in the last month the interest charge per month will be £1 per month. This is what without going into specific calcs, makes the increase only 57pm on a repayment mortgage...(not per annum)

Your forgeting to take into account the capital repayment part of the mortgage.

Please do not tell me you guys were using interest only as interest only on 100k on a 6% deal would only be 504pm not 600pm.

Batchy

bingobob777 wrote: »

My point was the average FTB isn't on 40k+.
The average FTB can't earn the average wage as used in the report, because if he/she is who is earning less?

Anyway who cares, it's hometime:)

70% of the houses in the UK are owner occupied, that doesn't mean 70% of the population own houses.

so 30% ... the renters, the social housing tenants, the homeless, will all potentially be earning less (please no one get offended by that) thats just an assumption by the way.

Lots of them owners dont work and have very high value houses, Ie pensioners.

There is nothing to say that only people who earn over the average wage can afford to be FTBer.

to be a FTBer,
1) you have to earn money
2) you have to be able to save
3) you have to keep working, be healthy
4) you have to earn enough in relation to what you want to buy(expectations)

The right you have to be a FTBer is determined by your will to buy, will to save and ambition. if you dont earn enough do something about it... stop complaining.

There is also nothing to say anyone earning over the average wage will be able to afford to buy.

Its just the way it is... its a free market. I like it that way!

Mallotum_X

Thats a little bit flawed is it not, do many people worry about what the interest effect will be in year 25. Or are they interested in the rate right now?

AndyGuil

Batchy wrote: »

By the time you get to year 25 ... its not going to basing the 1% on 100k still... so average your 83 per month out over the life of the mortgage thats the starting interest charge on the extra 1% at 100k... but the end in the last month the interest charge per month will be £1 per month. This is what without going into specific calcs, makes the increase only 57pm on a repayment mortgage...(not per annum)

Thanks for clearing it up. The per annum part was causing the trouble and you've made it clear that it was repayment type.

Graham_Devon

Skipped from page one, to posting this, as it appears page one is simply more of the same....trying to convince others a fall is actually a rise, etc.

Down year on year.

Down over the quarter.

Down over the month.

I think it's fair to say, it's down.