Debate House Prices


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Repo's up and some startling numbers

1246722

Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    See above post ;)

    How dare FTB's not buy the average priced house on the average UK wage.

    Obviously all made up.:)

    I wonder if my question will be answered...or not?;)
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Really2 wrote: »
    They did not buy average price houses and they were not all buying on one wage based on the average uk wage?
    As life is not based on these averages?

    Not every FTB buys a £200K house, the average FTB house seems to be less than £150K @ peak.

    Perhaps now you can state why the figures are wrong????

    Not that you ever ignore questions Graham.

    Lets take your 150k house.

    That still means, at 95% LTV , the average FTB had a wage of £43,313.

    I ask again. How did so many FTB's buy houses in 2007?

    Anywhere nearer to assuming the figures do not include every mortgage type? Or still in denial?
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    Let's have an alternative hypothetical example given the above data that near peak, the average FTB property was only £113,877

    Lets have a hypothetical example.

    FTBer has a £5,000 deposit (made up from savings, no need for BOMAD / inheritance / whatever).
    They're joint income is only £33,000. (Many single incomes are on that)

    Can they afford the £113,877 property?
    What is their LTV should they use their deposit?
    What is their multiplier of their income to mortgage?

    P.S. remember that property on average has reduced since then.
    That said, the latest release is showing: -
    http://www.cml.org.uk/cml/media/press/2938

    Average FTB LTV = 80%
    Average FTB income multiplier = 3.13
    Proportion of FTB income spent on interest payments = 13.3%
    Average loan value (£1,900 million / 15,800 loans) = £120,253
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Lets take your 150k house.

    That still means, at 95% LTV , the average FTB had a wage of £43,313.

    I ask again. How did so many FTB's buy houses in 2007?

    Anywhere nearer to assuming the figures do not include every mortgage type?

    I said it looks like it was less than £150K not was £150k

    See ISTL's post.

    We have answered why dont you answer why these figures are incorrect?

    You are just mugging your self off think about average wages, average house prices and 125% mortgages.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 22 June 2011 pm30 9:29PM
    Let's have an alternative hypothetical example given the above data that near peak, the average FTB property was only £113,877

    Thats a crock of !!!!!! in itself.

    Do you not question these figures?

    Since "near peak", the average FTB house seems to have increased to £121,000.

    Where does self cert come into this? Do the CML cover this? Anyon got any answer....as I think, considering 50% of mortgages in 2006/7 were self cert, this is where the issue is.

    All these figures look dubious. From the 113k houses in 2006 (near half the price of the average home!?), to incomes never crossing 3.3x income. Come on. Certain amount of denial needed to use these figures and apply them across the whole housingmarket when every other stat is saying something different.
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    Lets take your 150k house.

    That still means, at 95% LTV , the average FTB had a wage of £43,313.

    I ask again. How did so many FTB's buy houses in 2007?

    Anywhere nearer to assuming the figures do not include every mortgage type? Or still in denial?

    Already answered in post 30
    http://forums.moneysavingexpert.com/showpost.php?p=44689238&postcount=30

    and by Really 2
    They did not buy average price houses and they were not all buying on one wage based on the average uk wage?
    As life is not based on these averages?

    Please take a moment to read anddigest
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Really2 wrote: »
    We have answered why dont you answer why these figures are incorrect?

    You are just mugging your self off think about average wages, average house prices and 125% mortgages.
    because he can't, he'll do his usual muddle routine to try and prove he was right then do his victim routine and run off again. he's an excuse of a man, all 5 foot 1 of him.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Thats a crock of !!!!!! in itself.

    Do you not question these figures?

    Since 2006, the average FTB house seems to have increased to £121,000.

    Where does self cert come into this? Do the CML cover this? Anyon got any answer....as I think, considering 50% of mortgages in 2006/7 were self cert, this is where the issue is.

    Any proof they were all FTBs? Perhaps it was not FTB's using self cert would be a logical approach.

    I know that approach may not be the first undertaken though.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 22 June 2011 pm30 9:35PM
    Really2 wrote: »
    Any proof they were all FTBs? Perhaps it was not FTB's using self cert would be a logical approach.

    I know that approach may not be the first undertaken though.

    I didn;t say they were. All I asked is are they included?

    Next awkward question is: If house prices really are only 3.13x wages currently, howcome we have such immense problems and so many priced out?

    It can't be lack of lending, as we (or you lot I should say) have just concluded, it never passed 3.3x wages, even with 100%+ loans aplenty.

    Come on.

    Denial. Or answer? Or just abuse?
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    Thats a crock of !!!!!! in itself.

    Do you not question these figures?

    Since "near peak", the average FTB house seems to have increased to £121,000.

    Where does self cert come into this? Do the CML cover this? Anyon got any answer....as I think, considering 50% of mortgages in 2006/7 were self cert, this is where the issue is.

    Stop and have a think.
    The latest release I posted showed 15,800 loans averaging at just over £120k.
    Are self cert loans still available now for these FTBers?

    Got another calculation that'll get your knickers in a twist.
    With the average loan calculating at £120,253 with the average income multiplier being 3.13, that means the average FTBer (could be joint remember) is £38,419 ;)
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
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