Looks like my prediction of a tougher 2012 is becoming mainstream

Cleaver

shortchanged wrote: »

You had quite a hefty deposit then Cleaver, £34,000. Fair play to you and good saving.

Bank of Mum and Dad my friend! Well, kind of. The story goes...

We saved up around £15,000 over about two and a half years. We put the offer in on the house and were all set to put down a 10% deposit and borrow 3.2x our income. After we put the offer in, and had it accepted, we had an appointent at a mortgage advisor and my parents rang us that very morning to say that they'd like to give us £20,000 towards it. They didn't tell us up until this point as they didn't want us not to save and also didn't want us simply buying a more expensive house due to their extra money. Their rationale for giving us the money was that it was more useful to us at that point than in 30 years time.

Fully prepared for the flack as I know that getting money from your parents is seen as low as murder by some on here. I'd do the same for my kids though.

robmatic

Cleaver wrote: »

Bank of Mum and Dad my friend! Well, kind of. The story goes...

We saved up around £15,000 over about two and a half years. We put the offer in on the house and were all set to put down a 10% deposit and borrow 3.2x our income. After we put the offer in, and had it accepted, we had an appointent at a mortgage advisor and my parents rang us that very morning to say that they'd like to give us £20,000 towards it. They didn't tell us up until this point as they didn't want us not to save and also didn't want us simply buying a more expensive house due to their extra money. Their rationale for giving us the money was that it was more useful to us at that point than in 30 years time.

Fully prepared for the flack as I know that getting money from your parents is seen as low as murder by some on here. I'd do the same for my kids though.

Nowt wrong with that, that's what family is all about. Some people don't realise how important intergenerational bonds are.

shortchanged_2

Cleaver wrote: »

Bank of Mum and Dad my friend! Well, kind of. The story goes...

We saved up around £15,000 over about two and a half years. We put the offer in on the house and were all set to put down a 10% deposit and borrow 3.2x our income. After we put the offer in, and had it accepted, we had an appointent at a mortgage advisor and my parents rang us that very morning to say that they'd like to give us £20,000 towards it. They didn't tell us up until this point as they didn't want us not to save and also didn't want us simply buying a more expensive house due to their extra money. Their rationale for giving us the money was that it was more useful to us at that point than in 30 years time.

Fully prepared for the flack as I know that getting money from your parents is seen as low as murder by some on here. I'd do the same for my kids though.

Fair enough but it does show that without parental help you whould have had to borrow more than the traditional norm of 2.5 - 2.75 times a joint income back then. So it is likely that by 2007 the income multiples would have been significantly higher.

Cleaver

shortchanged wrote: »

Fair enough but it does show that without parental help you whould have had to borrow more than the traditional norm of 2.5 - 2.75 times a joint income back then. So it is likely that by 2007 the income multiples would have been significantly higher.

Yeah, we would have done. But 3.2 income would have been fine. By 2006 we were earning £50k between us, so within two years our borrowing would have been 2.3x our earnings even without parental help. This will be fairly common for a lot of FTBers - you're at the start of your career, so your earnings rise pretty quickly.

Just to add that we always knew we were going to have to borrow more than the historical norm. Everyone knows that housing moves in cycles and the 2000s was a boom. You've therefore got a choice whether to buy in a boom or not.