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Debate House Prices
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Homes for FTB's at most affordable in 10 years
Comments
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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.
People have always in the main needed a deposit. The 100% market only represented 1% pre 2007 and the market of less than a 15% deposit represented about 15% compared to 10% now.
If you can't buy something then it's not affordable regardless of the reason you can't buy it.
Prices in reality are only seen as affordable to those who in the main who have wealthy parents who can afford big deposits and therefore make the market look more affordable than it is. To the average potential FTB its not affordable.0 -
the market of less than a 15% deposit represented about 15% compared to 10% now.
Interesting.
Any chance of a source for that?“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 -
http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2191114/reduction-in-bank-lending-hurts-firsttime-buyers-esurv
The number of loans to people with a deposit of less than 15% hit its lowest level for 11 months, these borrowers now make up just 10% of total house purchase loans.
Cant find the figures for pre 2008 but from memory it was about 15%0 -
And even if it was, as we all know, the 0.5% base rate isn't actually changing affordability for FTBers anyway. Mortgage rates for FTBers with modest deposits aren't much different to those available in the Noughties.
100% true this. I am a FTB, and have been looking on and off for around 15 years.
10 years ago, I could get a FTB mortgage at between 0.5% and 1.5% above base rate, which worked out at around 5-6%. Now i can get between 4 and 5% above basee rate, which is very similar interest.
I highly susspect if Base rate rises to even 5%, then mortgage offers would still be in the 6-7% range. Base rate bears NO resemblance to mortgage interest rates.0 -
IveSeenTheLight wrote: »P.S. Wgaes are still inflating albeit maybe not as fast as other costs of living.
Really? the AVERAGE wage might be inflating, but the MAJORITY of wages have seen cuts, or freezes for the last 3 years.
Once again, those paid well are offsetting those paid not so well and distorting the true figures.0 -
No house prices are not affordable for FTB's as if they were then numbers buying would not be so low.
See - theres the trap again.
Prices ARE as affordable. Access to the money is where the issue is.
House prices and mortgage payments themselves may be affordable, however if required deposits are higher, and general lending criterea tighter - then people that can afford to buy cant necessarily get the required funding.0 -
on this link base rates were a few percentage points above inflation for nearly 20 years..
http://www.marketoracle.co.uk/Article16350.html0 -
paulmapp8306 wrote: »See - theres the trap again.
Prices ARE as affordable. Access to the money is where the issue is.
House prices and mortgage payments themselves may be affordable, however if required deposits are higher, and general lending criterea tighter - then people that can afford to buy cant necessarily get the required funding.
If you cant get funding then you can't afford to buy.0 -
People have always in the main needed a deposit. The 100% market only represented 1% pre 2007 and the market of less than a 15% deposit represented about 15% compared to 10% now.
If you can't buy something then it's not affordable regardless of the reason you can't buy it.
Prices in reality are only seen as affordable to those who in the main who have wealthy parents who can afford big deposits and therefore make the market look more affordable than it is. To the average potential FTB its not affordable.
The thread is about affordability not if houses are affordable to everyone which they never have been.
In comparison to earnings houses are no more that 20% above long term average so property is less affordable than average. All the report says that you have to go back to before 2002 to find a time when property was more affordable.
I don’t believe property is only affordable to people with rich parents a couple would need to be earning £42k between them to buy the average house with a 10% deposit and 3.5x joint mortgage.
They would take home at least £2600 a month so saving deposit shouldn’t take to long if they are prepared to make some sacrifices.0 -
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