You can not afford to buy a house if...

Jimmy_31

Jonbvn wrote: »

I don't believe that is true, based on anecdotal evidence anyway.

Hamish will not accept anecdotal evidence

HAMISH_MCTAVISH

Jimmy_31 wrote: »

If uk mortgage lending was extremely responsible then why is it now so difficult for lots of people to get a mortgage.

Because banks are rationing a very limited pool of funding through imposing higher deposit requirements and credit scoring.

They simply don't have access to enough funding to meet demand as the global credit markets are still dysfunctional.

If the lenders were acting responsibly during the boom then i see no reason for anything to change in regards to getting a mortgage now that the boom is over.

The thing that has changed is banks do not have access to enough funding to lend.

Hence they must limit demand for funding by imposing absurdly stringent requirements on borrowers, until the pool of borrowers shrinks to match the pool of available funding.

Things have changed though so something must not have been right.

You've had this explained to you many times already, so your continued pretense of ignorance is just trolling.

tara747

andthethreebears wrote: »

So the only way to afford a property is to be old?!

I disagree about the mortgage term point (amongst others)
We bought our property at 15yrs younger than the 'average' ftb.
So even on a 30yr as opposed to a 25yr mortgage - we're still a minimum of 10yrs ahead!! Makes sense to me...

Oh dear. A 30 year mortgage? May I ask when you bought this 'property'?

With prices still falling here and our savings looking good, OH and I aim to be cash buyers or as close to it as possible... we certainly do not intend to have a mortgage longer than 10 years at the very most.

dorset_nurse

tara747 wrote: »

Oh dear. A 30 year mortgage? May I ask when you bought this 'property'?

With prices still falling here and our savings looking good, OH and I aim to be cash buyers or as close to it as possible... we certainly do not intend to have a mortgage longer than 10 years at the very most.

So now the thread is all about you?! Whats your point?
The length of mortgage someone chooses is completely up to them. You enjoy renting a little while longer while you save...

Idiophreak

poppysarah wrote: »

You are financially ignorant if you can see no gain from having saved your own deposit.

Worse than having a gifted deposit, I actually bought with, shock, horror, shared equity (and I didn't overpay, actually...but thanks for worrying). In doing so, I have 10 years to save the 25% that the builder leant us. This will be a lot easier than saving outright, as I'm paying £300/month less in mortgage than the neighbours are in rent (yes, I know, there are other costs...) - oh, and in 10 years time, I'll have paid 10 years off my mortgage, too.

If I'd waited, and saved this deposit whilst renting, I'd be massively worse off in ten years time. Even if I saved a smaller deposit (10%?), I'd still have started by mortgage a few years later, had a larger mortgage and not found nearly such a good fixed rate...

You're financially ignorant if you believe any hard and fast rule. People are different, circumstances are different.

joerugby

The problem with the housing market at the moment is that a lot of people still seem willing to pile in thinking it is a long term one way (upwards) bet. Just because prices have risen in the past doesn't mean that they will in the future.

Humphrey10

poppysarah wrote: »

You are financially ignorant if you can see no gain from having saved your own deposit.

Please explain how I would gain financially from saving my own deposit, rather than having it gifted to me?
No stupid replies like 'it will make you feel warm and happy inside to have saved up all that money all on your little own' please.

Jimmy_31

HAMISH_MCTAVISH wrote: »

Because banks are rationing a very limited pool of funding through imposing higher deposit requirements and credit scoring.

They simply don't have access to enough funding to meet demand as the global credit markets are still dysfunctional.



The thing that has changed is banks do not have access to enough funding to lend.

Hence they must limit demand for funding by imposing absurdly stringent requirements on borrowers, until the pool of borrowers shrinks to match the pool of available funding.



You've had this explained to you many times already, so your continued pretense of ignorance is just trolling.

Oh so its got absolutely nothing to do with the irresponsible lending that they were practicing.

The absurdly stringent requirements that you mention are welcomed by many people including myself.

Can you please stop trolling now hamish.

daisymay2008

Humphrey10 wrote: »

Please explain how I would gain financially from saving my own deposit, rather than having it gifted to me?
No stupid replies like 'it will make you feel warm and happy inside to have saved up all that money all on your little own' please.

agreed, there are some very smug people on here indeed....

i know friends who have been given 10-20k from their parents, good on them i say, i wouldn't look a gift horse in the mouth either, and when i retire at 55 with a nice pension lump sum (hopefully) I will also plan to give my children money to help with all kinds of things like uni or houses, because i want to and it will make me happy, i would also expect them to save aswell and show me they can save

newsgroup_monkey

This has confirmed that anyone on a housing board is both smug and a scaremonger.

I bought my first house in 1997 using a gift loaned by my parents. Not gifted - expected to be paid back (and it was).
I couldn't afford anything when we moved in. So we begged and borrowed.

For me, paying my mortgage (or rent) was always a priority: I have never missed a rent or mortgage payment since i started renting in 1989.

I would have been looking to kill off my mortgage by now if it wasn't that I separated 5 years ago. Getting back onto the housing ladder isn't like it was in '97. I needed a couple of month's wages back then (around 3k).

Today, I'm earning a good wage (albeit with maintenance payments) but it's absolutely impossible to get on the housing ladder. The average working person earns around £24k a year. Before tax. The average required deposit is £25k. If someone could save a deposit in 2 years, they would be living so frugally that they would be living on the equivalent of Job Seekers Allowance (without the Council Tax reductions and other benefits).

And yet I've proven I can pay a mortgage - my rent is £900 a month which I've never missed, bills are paid on time, debts are negligible.

So if those "holier than thou" people can suggest where I can sort a deposit before I'm 50 (I'm 40 this year) I'll be happy to listen.

Otherwise, I'm going to have to rely on a gift or another alternative.

And yes, I pretty much lost everything in the divorce (including any equity we had in the house).