Stuck in their starter homes

chewmylegoff

don't worry everyone, zoopla says the value of the house is only down by £20,000, so you can afford another child now.

not sure why they can't have three kids in a three bedroom house. surely at least two of the three children will be of the same gender??

Really2

Graham_Devon wrote: »

To be fair on this point, many, including myself were sold the HPI dream. I did raise this point when buying, and was told by a mortgage advisor that the increase in the property would more than pay for fees of moving, even over 3 years.

Have you took legal action against him/her? as you have been mis-sold a mortgage.

Graham_Devon

Really2 wrote: »

Have you took legal action against him/her? as you have been mis-sold a mortgage.

I haven't been misold. I didn't take his advice. I'd have ended up in a 200k flat, worth around 140k tops if I had, with an interest only mortgage that I would have, now having a child, defaulted on by now.

ntb1

425,000 3 bed detached starter home? - why do they need to put family up? travelodge/permier inn works well and only for a few ££ each visit.

Really2

Graham_Devon wrote: »

I haven't been misold. I didn't take his advice. I'd have ended up in a 200k flat, worth around 140k tops if I had, with an interest only mortgage that I would have, now having a child, defaulted on by now.

The "raised this point when buying" led me to believe you had.
Anyone who had taken a mortgage out based on what you had said would have ever right to take legal action against the advisor and their company.

the_flying_pig

what these sob stories are really about is the following two things:

1 - low [relative to cost of living] wage increases make it more difficult to buy anything, houses included.
2 - for owner-occupiers at least, interest only mortgages are a very particular product that should only be taken out by people who fully understand all of the implications.

as others have pointed out HPI without wage increases would have boosted the size of their deposit but pushed more expensive houses even further out of reach.

Graham_Devon

the_flying_pig wrote: »

as others have pointed out HPI without wage increases would have boosted the size of their deposit but pushed more expensive houses even further out of reach.

Seems to me, based on the text in the article, these people wouldn't have cared less if the house had become more expensive, and therefore increased the gap between what their existing house was worth and what the next was worth.

That probably wouldn't have entered their minds.

Whether they could get the mortgage for it would have been the only consideration.

That's my 2p. I may be wrong. But it seems many think the same way. Price is really secondary to finance, regardless of the product used. Hence interest only.

Heyman_2

Calm down, dears. It's the Daily Fail.

Have to agree with Dev's first post - it's kind of a stupid story, also probably with loads of facts missing/adjusted and lots of made-up quotes to really provoke that outcry reaction that is their bread and butter.

the_flying_pig

Graham_Devon wrote: »

Seems to me, based on the text in the article, these people wouldn't have cared less if the house had become more expensive, and therefore increased the gap between what their existing house was worth and what the next was worth.

That probably wouldn't have entered their minds.

Whether they could get the mortgage for it would have been the only consideration.

That's my 2p. I may be wrong. But it seems many think the same way. Price is really secondary to finance, regardless of the product used. Hence interest only.

yeah, a lot of people have very short time horizons.

a few years ago i worked for an company that was subject to a merger/takeover. some time in 2003/2004 [the absolute epicentre of the boom, 20-odd % p.a. HPI] staff were offered the chance to turn in their final salary pension for something like a 10% pay rise. discussing it in the pub with a few not-very-educated blokes in not-very senior positions there was a quick informal straw poll to see how many were accepting the offer. to a man they said they would because bigger salaries meant an ability to borrow more to buy a house. no other factors were even considered.

dtsazza

the_article wrote:

‘It seems cruel, doesn’t it, that a financial crisis and a property slump could determine the size of your family?’

Nope - I don't see anything unusual or cruel about having to live within your means.