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Average Deposit now 66K !
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8769113/House-prices-average-deposit-now-66000.html"Much has been made of rising house prices, but the average deposit needed in the first place has actually risen more than twice as fast as house prices and almost four times as fast as income," he said.
"This is why we are seeing first time buyers getting older, with more and more people struggling to get on the property ladder."
A generation forced to enrich landlords thanks to absurdly high deposit requirements far worse than they were in the 1960's, 1970's, 1980's, 1990's and 2000's.
Despite the percentage of income required to service a mortgage, even with 5% interest rates, being well below the long term average.
Very sad.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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If prices came down, then so will deposits. You know it makes sense ;-)0
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If prices came down, then so will deposits. You know it makes sense ;-)
A 10% fall in prices turns a 10% deposit into an 11.1% deposit.
Meaningless when you need a 25% deposit for FTB-s to get a decent rate.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
However, it's nice to see that the banks are taking less risks and therefore saver's/taxpayer's money is more safe.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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HAMISH_MCTAVISH wrote: »http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8769113/House-prices-average-deposit-now-66000.html
A generation forced to enrich landlords thanks to absurdly high deposit requirements far worse than they were in the 1960's, 1970's, 1980's, 1990's and 2000's.
Despite the percentage of income required to service a mortgage, even with 5% interest rates, being well below the long term average.
Very sad.
The deposits not the problem for a lot of people hamish, its the bills on top of the mortgage thats holding some people back from buying, or as you may call it, leccy rationing:rotfl:0 -
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However, it's nice to see that the banks are taking less risks and therefore saver's/taxpayer's money is more safe.
Crikey DP, just how much profit do you want the bankers to make???:eek:
You must really love those bankers rolling around in their bonuses, laughing all the way to, well, the bank as FTB-s are forced to enrich landlords instead.
Just one mortgage in 263 will be repossessed this year, and that's with all the 125% mortgages, self cert, etc that went on for nearly a decade.
Even Northern Rocks "Bad Bank" loan book made a 300 million pound profit last year.
It's never been UK mortgage lending standards that were the problem!!!
When even the worst loans from the most aggressive of UK lenders like Northern Rock make nearly a third of a billion pounds profit in just a year, how much more freaking evidence do you need to understand this? :rotfl:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Where I live average house prices are £246,000 but average wage is £24,000. We have a lot of hotel trade so wages are actually lower.HAMISH_MCTAVISH wrote: »A 10% fall in prices turns a 10% deposit into an 11.1% deposit.
Meaningless when you need a 25% deposit for FTB-s to get a decent rate.
So I would say house prices have further than the 10% to fall.0 -
HAMISH_MCTAVISH wrote: »
Are you suffering from short-term memory loss?
Yesterday you quoted from a report which included:The average deposit put down by a mortgage applicant in August was £54,235, down significantly on the average deposit of £60,759 in July."When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0 -
If banks are demanding 25% deposits it means they think prices might drop by 25%.
A very bearish outlook from the people who's opinion is actually relevant.0 -
The deposits not the problem for a lot of people hamish, its the bills on top of the mortgage thats holding some people back from buying, or as you may call it, leccy rationing:rotfl:
Why, don't renters pay any bills?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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