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Debate House Prices
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Mortgage payments "more affordable"
Graham_Devon
Posts: 58,560 Forumite
Just shows how statistics are often meaningless. This is what you get if you only lend to certain people, taking low LTVs.Mortgage payments for new borrowers have reached their most affordable levels for 14 years, but only for those lucky enough to qualify for a home loan, research from lender Halifax has found.
Typical payments in some areas of Scotland and northern England now take up less than a fifth of disposable incomes.
Average mortgage payments for new borrowers, including first-time buyers and home movers, stood at 27% of disposable earnings in the fourth quarter of 2011.
This marks the lowest proportion since spring 1997 when a 26% proportion was recorded, and stands well below the 37% average over the past 27 years.
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Comments
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Graham_Devon wrote: »Just shows how statistics are often meaningless. This is what you get if you only lend to certain people, taking low LTVs.
It's also what you get when prices fall and rates are low.
Or when prices stagnate and wages rise.
Or any combination of the above.;)“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 -
Besides, I wouldn't worry Graham, it seems the banks still have no intention of lending to people with good credit scores and historically normal, prudent and sensible deposit levels.
https://forums.moneysavingexpert.com/discussion/3733557“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 -
HAMISH_MCTAVISH wrote: »It's also what you get when prices fall and rates are low.
Or when prices stagnate and wages rise.
Or any combination of the above.;)
Can you let me know how quickly disposable income is increasing please.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
Graham_Devon wrote: »Just shows how statistics are often meaningless. This is what you get if you only lend to certain people, taking low LTVs.
It means that people with mortgages are paying less for their housing. More damage to the homeowners on the edge argument - arrears and repos low and costs coming down. It's a good time to be a homeowner.
Prices down by 3% in 2011 according to LR but the only people taking advantage are those with big cash deposits (BTL's). So as prices come down they are no more accessible to FTB's and they have to rent from rich people and pay their mortgages instead. Go bears!0 -
It means that people with mortgages are paying less for their housing. More damage to the homeowners on the edge argument - arrears and repos low and costs coming down. It's a good time to be a homeowner.
Prices down by 3% in 2011 according to LR but the only people taking advantage are those with big cash deposits (BTL's). So as prices come down they are no more accessible to FTB's and they have to rent from rich people and pay their mortgages instead. Go bears!
Unfortunately the whole mess was created by greedy bulls.0 -
shortchanged wrote: »Unfortunately the whole mess was created by greedy bulls.
Like I said on another thread - let's blame someone - that'll help.
Hopefully anyone that really wants to buy a house to live in is saving like mad rather than just blaming those greedy bulls. Only one of those options is likely to have the desired outcome.0 -
Graham_Devon wrote: »Just shows how statistics are often meaningless. This is what you get if you only lend to certain people, taking low LTVs.
Yes, treble the price of something then slash the cost of borrowing to a tenth of what it was and hey presto....the monthly payments are cheaper....Not rocket science, only the mathematically dumb would fall for that crap.
Obviously I'm slightly exaggerating to make the point.Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
It means that people with mortgages are paying less for their housing. More damage to the homeowners on the edge argument - arrears and repos low and costs coming down. It's a good time to be a homeowner.HAMISH_MCTAVISH wrote: »It's also what you get when prices fall and rates are low.
Or when prices stagnate and wages rise.
Or any combination of the above.;)
So nothing to do with lenders lending lower amounts (LTV) to peope with higher incomes then?
Who'd have thought! It's actually to do with lower house prices, that you will both deny is happening country wide rigourously, and to do with rates being low for buyers, which you will both deny rigourously and tell us the horrors of mortgage rationing and mortgage companies profiteering!
It's a bizzare old world out there.0 -
Like I said on another thread - let's blame someone - that'll help.
Hopefully anyone that really wants to buy a house to live in is saving like mad rather than just blaming those greedy bulls. Only one of those options is likely to have the desired outcome.
Why would you care wotsits.
I mean you're a not-bull aren't you.
can;t see why you would take it so personally
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Yes, treble the price of something then slash the cost of borrowing to a tenth of what it was and hey presto....the monthly payments are cheaper....Not rocket science, only the mathematically dumb would fall for that crap.
Obviously I'm slightly exaggerating to make the point.
Exactly.
Hamish won't respond to this one of course.0
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