lenders warn low-deposit mortgages are over

geneer

Rinoa wrote: »

Like it says in the OP:

So that's one million extra renters living in one million extra BTL's.

The competition is still there, but instead of FTB's buying for themselves, BTL landords are snapping up the FTB housing stock and renting it out to those who can't raise a deposit.

And all those new BTL properties will probably be lost to FTBs forever.

:rotfl:Landlords with enough money to put together a decent deposit you mean.

Ah. That will be why your imaginary sci-fi future isn't happening.

The new paradigm sounds an awful lot like the old one.

Rinoa

geneer wrote: »

:rotfl:Landlords with enough money to put together a decent deposit you mean.

Ah. That will be why your imaginary sci-fi future isn't happening.

The new paradigm sounds an awful lot like the old one.

Rents at record high levels ~ mortgage rates at record lows. There aren't many poor landlords champ.

And they're hoovering up all the FTB property the bears once thought would be theirs. Whatever happened to the HPC dream?

geneer

Rinoa wrote: »

Rents at record high levels ~ mortgage rates at record lows. There aren't many poor landlords champ.

And they're hoovering up all the FTB property the bears once thought would be theirs. Whatever happened to the HPC dream?

Except they really really aren't champ. :rotfl:

They were hoovering them up pre-bubble. Nowadays, not so much.

And the HPC dream?
Depends on whether you've been awake since 2007.

leveller2911

Sibley wrote: »

I'm glad people like Geneer are getting totally frozen ot of the housing market.
If they had kept their mouths shut they would own a house now.

A liar loan would have given them the chance to own and make enough money to retire. Now they have managed to bring that facility crashing down. All they have left if the chance to pay off somebody elses mortgage.

Serves them right.

And Conrad(a supposed Mortgage advisor) thanked your post.I think that says everything we need to know about Liar Loans and mortgage advisors(that is if he is one)...;)

paulmapp8306

Im sorry - I cant take the original quote seriously with the line:

His comments were echoed by Mr Bean.


I just couldnt help the inevitable image of Rohan Atkinson


That aside ... the cost of borrowing is currently less than renting, but I highly doubt thats always going to be the case. 0.5% base rate cannot and willnot last forever. Personally I expect to be at 4-5% in the next 3-4 years. That puts mortgages at a similar price to rents (though they may go up as well).

I firmly believe (having never owned a house, so I may be hopefull here) that prices are going to fall quite a way yet - with double dip depressions, fewer and fewer low deposit mortgages, less job security, lower real term saleries/wages etc etc etc.

Ultimately if you can raise 20%+ i think you'll be fine, you MAY be OK with 15%. Anything less and I think youll be stuffed. That said - if prices fall as I (andd many Ive spoken to - in the job and out of it) somewhere between 15% and 30% from todays levels over the next 3 years, then that 20% deposit will also be less than needed today.

i HAD pretty much given up hope of a mortgage and owning my own home, but with £18k from my mum (left on my dads death 20+ years ago, and kept for me until I needed it) and house prices still falling Ive been more hopefull. A further fall of 10% will mean i could make a 20% deposit on a suitable house (in the area im looking which admitedly isnt a high price area).

Pimperne1

paulmapp8306 wrote: »

Im sorry - I cant take the original quote seriously with the line:

His comments were echoed by Mr Bean.


I just couldnt help the inevitable image of Rohan Atkinson


That aside ... the cost of borrowing is currently less than renting, but I highly doubt thats always going to be the case. 0.5% base rate cannot and willnot last forever. Personally I expect to be at 4-5% in the next 3-4 years. That puts mortgages at a similar price to rents (though they may go up as well).

I firmly believe (having never owned a house, so I may be hopefull here) that prices are going to fall quite a way yet - with double dip depressions, fewer and fewer low deposit mortgages, less job security, lower real term saleries/wages etc etc etc.

Ultimately if you can raise 20%+ i think you'll be fine, you MAY be OK with 15%. Anything less and I think youll be stuffed. That said - if prices fall as I (andd many Ive spoken to - in the job and out of it) somewhere between 15% and 30% from todays levels over the next 3 years, then that 20% deposit will also be less than needed today.

i HAD pretty much given up hope of a mortgage and owning my own home, but with £18k from my mum (left on my dads death 20+ years ago, and kept for me until I needed it) and house prices still falling Ive been more hopefull. A further fall of 10% will mean i could make a 20% deposit on a suitable house (in the area im looking which admitedly isnt a high price area).

To be perfectly honest, as someone who ran up £44k of debt your pretty lucky to be able to consider owning a home at any time.

paulmapp8306

Cleaver wrote: »

.

If I were a FTBer which situation would I prefer? A house at £100,000 where I need to find a £25,000 deposit or the same house at £150,000 where I need to find a £15,000 deposit?

As a FTB - the first one, because on that salery (I earn £37k) the mortgage payments on £135k would be a real struggle, but the payments on a £75k mortgage are manageable.

Its not just the deposit - ultimately if you WANT to own your own home you will save that deposit - whether its £10k or £30k. The mortgage payments are actually a much more important part of the equation. Rates are low now but that wont last.

Im sorry to all home owners, but for a FTB the prices are the issue not the deposit.

Pimperne1

paulmapp8306 wrote: »

As a FTB - the first one, because on that salery (I earn £37k) the mortgage payments on £135k would be a real struggle, but the payments on a £75k mortgage are manageable.

Its not just the deposit - ultimately if you WANT to own your own home you will save that deposit - whether its £10k or £30k. The mortgage payments are actually a much more important part of the equation. Rates are low now but that wont last.

Im sorry to all home owners, but for a FTB the prices are the issue not the deposit.

Don't be sorry for them - they are mostly sitting pretty at the moment. Drops in the "real" price don't much affect them (and I would suggest that they don't much affect potential FTBs either).

paulmapp8306

Pimperne1 wrote: »

To be perfectly honest, as someone who ran up £44k of debt your pretty lucky to be able to consider owning a home at any time.

Yep, I know. TBH 1/3 of that was charges/interest etc (off the point really) BUT I acknowledge my past mistakes (if only the bankers would do the same )

I have all but paid off my debts and have had a lot of luck with inheritances and parents help - or i would never be ina position to own my own home.

i dont deny this - however, if anything, it makes my view of borrowing money, and the cost of doing so - of propper budgeting and knowing what i can and cant afford more realistic than many who havent (yet) run into debt problems. I think that qualifies me to some extebnt to comment on what FTBs want, can afford, and what is a realistic long term commitment.

Pimperne1

paulmapp8306 wrote: »

Yep, I know. TBH 1/3 of that was charges/interest etc (off the point really) BUT I acknowledge my past mistakes (if only the bankers would do the same )

I have all but paid off my debts and have had a lot of luck with inheritances and parents help - or i would never be ina position to own my own home.

i dont deny this - however, if anything, it makes my view of borrowing money, and the cost of doing so - of propper budgeting and knowing what i can and cant afford more realistic than many who havent (yet) run into debt problems. I think that qualifies me to some extebnt to comment on what FTBs want, can afford, and what is a realistic long term commitment.

Actually delighted for you. Anyone who can turn it around like you have deserves to be a home owner (it doesn't look like its all down to inheritances).