Homes for FTB's at most affordable in 10 years

abaxas

Surely this mean the market is getting worse?

Ie people are not trying to buy anymore and have opted out.

IveSeenTheLight

Fella wrote: »

No it's not.

The content of the OP related to FTBers. My posts have been all about the use of Affordability as a self-serving term trotted out by VIs.

It appears you don't get to decide what's discussed on a given thread.

Do you want to not compare like for like?
I've seen there are two takes on affordability

1. Property Affordability
2. Mortgage affordability

1) Now I would agree that the indicators are that property is becoming less affordable. Simply looking at the how ownership percentages show that this is decreasing, largely due to deposit requirements and credit availability.

2) With regards to mortgage affordability, it's undeniable that using the same statistic of measurement, property is at one of the lowest points in the last 30+ years. Potentially, there will never be a better time to have a mortgage. There are very good historical long term fixes for those cautious of rate rises. Lets not even consider that the demographic of mortgage payers has moved more towards dual income households whilst the measure still utilises one wage ( average earnings for Male Full Time employees).

Can we agree on the following: -

Property is becoming less affordable to the masses, but for those that can get the deposit and credit it's one of the most affordable times

Wookster

IveSeenTheLight wrote: »

Property is becoming less affordable to the masses, but for those that can get the deposit and credit it's one of the most affordable times

I agree with every in your post except this. This statement is predicated on the fact that interest rates remain low. Because properties are less affordable (in the South East & London) all that needs to happen is for interest rates to rise and then mortgages will become unaffordable, and as it so happens, despite base rates being at record lows, mortgage rates are creeping up.

HAMISH_MCTAVISH

Wookster wrote: »

and as it so happens, despite base rates being at record lows, mortgage rates are creeping up.

Wrong again.

Looking at how Libor and swap rates are coming down at the moment, it is likely lenders will start to lower their mortgage rates soon.

The banks and building societies I have been speaking to expect their mortgages to get cheaper, especially if their competitors lower rates, and with the recent rate reductions at Northern Rock and NatWest we may have seen the start of a growing trend.

http://www.mortgagestrategy.co.uk/analysis/mortgage-rates-fall-but-expect-delays/1054367.article

The Royal Bank of Scotland is using the Bank of England’s funding for lending scheme to cut mortgage rates for first-time buyers and landlords.

Details of the Bank scheme were unveiled earlier this week with the aim of providing banks with up to £80bn of cheap loans to pass on to customers in the form of business loans and mortgages.

In response RBS is cutting rates on a direct-only fee-free five-year fixed rate deal at 90 per cent LTV from 6.49 per cent to 4.79 per cent which is also available at 95 per cent LTV using the government’s NewBuy scheme at the same rate as previously.

The bank is also launching a 3.49 per cent two-year fixed or tracker buy-to-let deal at 60 per cent LTV that is available through brokers.

http://www.mortgagestrategy.co.uk/latest-news/rbs-cuts-rates-as-funding-for-lending-scheme-kicks-in/1054721.article

HSBC has today announced the launch of the lowest ever five-year fixed rate mortgage.

The bank has confirmed that borrowers with a 40 per cent deposit or equity will now qualify for a fixed rate of 2.99 per cent for five years

http://www.mortgagestrategy.co.uk/latest-news/hsbc-launches-lowest-ever-five-year-fixed-rate-mortgage/1054467.article

Emy1501

No house prices are not affordable for FTB's as if they were then numbers buying would not be so low.

thescouselander

Good for FTBs. Unfortunately none of them will be buying our FTB house as we can't afford to trade up despite a good increase in our income - most people I know are in the same position. I think the real problems in the housing market are with the next time buyers.

ukcarper

Emy1501 wrote: »

No house prices are not affordable for FTB's as if they were then numbers buying would not be so low.

You don’t think that the fact that people now need to save a deposit has anything to do with lack of buyers.


Why do people mistake the word affordablity with affordable.

ukcarper

thescouselander wrote: »

Good for FTBs. Unfortunately none of them will be buying our FTB house as we can't afford to trade up despite a good increase in our income - most people I know are in the same position. I think the real problems in the housing market are with the next time buyers.

I though in the majority of places prices have fallen surely that makes it cheaper to trade up.

Loughton_Monkey

Look. Let's just get this straight. The word "affordable" has many different meanings:

For Sun readers, and gripers like "Shelter", for 'affordable' read "Free".

For those on benefits, it means 'expensive, but paid for by the taxpayer'.

For Daily Mail readers, it means 'good value, but more than we can afford'.

For the morons of this world, houses are only 'affordable' when every single house costs less than the average!

For bankers, however, every house is 'affordable' provided their bonus covers the cost of the private jet to take them to the house for four long holidays a year.

undetterred

Wookster wrote: »

You've just been granted a one way ticket to my ignore list.

Thanks buddy or is it !!!!!!:money: