When are going back to 10% or even 5% deposits

brit1234

opinions4u wrote: »

Lack of mortgage lending is the reason why 40% of transactions are for cash.

You mean Lack of irresponsible mortgage lending is the reason

VJ_

iandury wrote: »

I think it is now widely accepted that property is not going to fall in value all that much if at all in the next few years. So why are new buyers having to cough up at the very least a 15% deposit.

I was wondering what the boards thoughts were on this, surely it cannot be long now before we are back to 10% then even 5% deposits, even more so now that the Government own a good chunk of some Banks.

Someone who am trying to help out at the moment get a second property has been offered a 85% mortgage with only one years accounts, thats the best she can get.

Sensible lending means that a bank shouldn't really lend much over 4*income. IIRC the average income is ~24k. That means a sold bank won't lend much over 96k to most people. You're always going to need over 10% deposit to afford anything at today's prices; IMO that's a good thing - requiring a decent deposit shows that people have learnt to manage money responsibly.

noodle wrote: »

5.69%?

That might seem high relative to people currently on sexy variable and tracker rates.. but it's not high relative to any kind of normal time.

I'm a FTB, in the process of getting my first mortgage - my rate is base +1.89 for the lifetime*. Rates will have to go up 3.3% for me to reach that rate. IMO, the BoE will only put rates up slowly. I'm more or less certain it will take longer than his 2 years fixed to reach that rate on my tracker. It is a high rate for the times we're in. and even if rates do go up suddenly, I can switch fee free to one of my lenders fixed rates until December 2012. There are some good deals to be had if you hunt around.


HSBC fee-free lifetime special tracker.

smk77 wrote: »

Not when 'Bank of Mum and Dad' are contributing large amounts towards a deposit for the majority of FTB.

Some of us 'young people' know how to save as well, you know! Sure, the 'Bank of mum and dad' have helped by letting me live at home for zero to minimal rent (age & income dependant), but the cash has been saved up by me (started saving before I was even 16, now I'm 28). Getting together a serious deposit on a low salary is hard work, even with minimal outgoings.

Thrugelmir

smk77 wrote: »

Not when 'Bank of Mum and Dad' are contributing large amounts towards a deposit for the majority of FTB.

Cash buyers were actually lower in number than the comparable period in 2005. More a lack of people willing\wishing to borrow on a mortgage.

smk77

VJ_ wrote: »

Some of us 'young people' know how to save as well, you know! Sure, the 'Bank of mum and dad' have helped by letting me live at home for zero to minimal rent (age & income dependant), but the cash has been saved up by me (started saving before I was even 16, now I'm 28). Getting together a serious deposit on a low salary is hard work, even with minimal outgoings.

Do yourself a favour by read AND understanding what others write.

Thrugelmir stated that a deposit

Demonstrates that the borrower has the ability to manage their money in a responsible manner. Regular saving creates a discipline .

This was in response to a comment:

saving for a deposit is a lot different to meeting monthly payments for a mortgage,

So, my point was that just because someone has a deposit does not indicate that they are able to meet monthly payments as 80% of FTB's deposits are with parental help.

There is no need for you to get so defensive! The 'Bank of Mum and Dad' is a massive help to the majority of FTB - FACT. As for 'young people'..what am I? An old codger? lol! I managed to save up a deposit without the luxury or living rent free and it wasn't that long ago either.

VJ_

smk77 wrote: »

So, my point was that just because someone has a deposit does not indicate that they are able to meet monthly payments as 80% of FTB's deposits are with parental help.

There is no need for you to get so defensive! The 'Bank of Mum and Dad' is a massive help to the majority of FTB - FACT.

Sorry if I came off defensive, it's just that a lot of people tar all people of around my age as totally unable to save and irresponsible with money. I was only trying to demonstrate that this isn't always the case.

As for 'young people'..what am I? An old codger? lol!

What are you? This is the internet internet, a place where men are men, women are men, and 15yr old girls are FBI agents...;)

serious_saver

I think the most telling thing is that you've said "one years" accounts. To me that says they are either self-employed or a contract worker.

If you are in a secure job then there are deals out there but, it could be, that they have been scuppered by the nature of their work. In which case the deal they've been offered is very good.

serious_saver

VJ_ wrote: »

Some of us 'young people' know how to save as well, you know! Sure, the 'Bank of mum and dad' have helped by letting me live at home for zero to minimal rent (age & income dependant), but the cash has been saved up by me (started saving before I was even 16, now I'm 28). Getting together a serious deposit on a low salary is hard work, even with minimal outgoings.

Ditto! I started saving when I had a paper round aged 12! Now looking at buying aged 25. It's been hard work but I'm sure it will be worth it.

Thank you 'bank of mum and dad' for not charging me rent for nearly 3 years.

casualwalks

Two more deals 95% deals announced in the last 24 hours.

http://www.moneyavenue.co.uk/news/first-time-buyer-mortgages/nationwide-announces-95-protsent-mortgage-823.html

http://www.mortgagestrategy.co.uk/loans/skipton-launches-95-ltv-deal/1030483.article

DpchMd

Lots of 90% mortgages available now.

Eellogofusciouhipoppokunu

ferox666 wrote: »

Hahaha...you're joking, right?

Just wait for interest rate rises, further job losses and the public sector cuts to kick in. My friend's house has rose in value by 275% since 1997 - how much did salaries increase by? you think this is sustainable? The days of easy lending, e.g. 125% interest-only 40yr mortgages, that fuelled all this, are over.

If you can't afford a 15% deposit you can't afford to buy.

Rather than wanting to borrow more why not wait for the prices to fall, which WILL happen to this "bubble". Look at house price chart since the 1970s.

Jeeze, the same old mantra rolled out since 2002. Reminds me of that song by the Cranberries...

"It's the same old theme since 2002.
In your head, in your head they're still falling,
With their low interest rates and their liar loans,
And their OptionARMs and their repo's.
In your head, in your head, they are dying...

In your head, in your head,
Zombie, zombie, zombie,
Hey, hey, hey. What's in your head,
In your head,
Zombie, zombie, zombie?
Hey, hey, hey, hey, oh, oh, oh,
Oh, oh, oh, oh, hey, oh, ya, ya-a..."