A generation are being priced in order to keep the value up of their parents assets.

fawd1

I'm on both sides. I found a house which was HA, part rent part buy, but we were denied a mortgage on it because the mortgage was 900 per month. Instead we're renting at 950 a month. So, we would love to own a home, not for investment purposes, but because we want our own home. Instead, for more money, we're paying someone elses mortgage. And this is on my OH having a credit score of 920. Banks do not want to lend. We had guarantours etc etc, but no one would give us a loan. Even with a decent credit score and 30% deposit, for affordable housing.

When my parents pass away, we'll be able to buy that house outright, but in reality, I'll spend 20 years with them in an annexe next to me (happily I should add) but it's not right that my generation have to wait for gifts or inheritance in order to be able to buy!

Eellogofusciouhipoppokunu

irrationalactor wrote: »

People obsess about buying a home because there is no security of tenure in the private rental sector. 6 month ASTs mean renters are entirely at the mercy of their landlord and can't make long-term plans because they can't be sure where they will be living next year. Also sky-high rents increasingly force people to live in shared accommodation into their 30s and older - there's no way to start a family when your flatmates are the other side of the wall.

Owning a home - or having enough children to get to the head of the council list - is the only way to gain stability in the UK these days. No wonder people are obsessed with it, and angry about the inequality.

I do think that telling people who are denied something to stop wanting it is a bit of an odd thing to suggest. If a starving man forgets about food and concentrates on the other wonders of life then he is not doing himself any favours.

Perhaps their efforts would then be better directed at the government, lobbying for fairer tenancy laws, rather than becoming embittered and posting on various housepricecrash websites?

What's interesting is that the countries such as Germany where they do have decent tenancy laws and rent controls, they also don't have the mania for house buying and so don't suffer from the booms and bust that we do. Perhaps if peopel concentrated more on tenancy laws instead of pushing their views on mortgage multiples and lending restrictions, they will achieve their goal of a stable housing market.

olly300

Eellogofusciouhipoppokunu wrote: »

Perhaps their efforts would then be better directed at the government, lobbying for fairer tenancy laws, rather than becoming embittered and posting on various housepricecrash websites?

You would only get fairer tenancy laws if you could get institutional investors who would buy or develop housing for residential rent i.e. like the old factory owners. They would have an interest and would be allowed to rent their properties out for years at a time as BTL mortgages generally prevent landlords giving very long tenancy agreements.

However there is also a market for short term lets which last anything from 3 months to a year. I know from working abroad and talking to friends' who have/are working abroad the system of long term tenancies causes problems. If you want to stay in a place for up to a year in a country with long term lets as standards unless you are lucky it can be difficult to get out of a tenancy.

Regardless of how long the property is rented out for governmental rental controls are generally a bad idea. They can cause property shortages as potential landlords work out it's better not to invest in rental properties, or landlords trying to force current tenants out of properties so they can put the rent up for the new tenants.

JonnyBravo

olly300 wrote: »

That's because until you live in someone's property you don't know what kind of landlord they are.

Precisely to my point about asking for a reference of a past tenant. Possibly viewed as risky but as I've said it is probably only going to upset a bad landlord, so why is a tenant worried about that?

olly300 wrote: »

Lots of agencies give tenants 12 month contracts but they are the devil to deal with on both sides. I've had to advise people I've worked with who rent when they have had a major emergency i.e. massive water leak, boiler failure in winter, to get in contact with the landlord directly. On every single occasion the landlord has not been informed.

I don't use an an agency as I too have little faith in them and I'm not sure what they do for the money although ironically I do use them to find me a tenant. Past the first viewing and the credit checks though I do everything directly with the tenant.

CLAPTON

fawd1 wrote: »

I'm on both sides. I found a house which was HA, part rent part buy, but we were denied a mortgage on it because the mortgage was 900 per month. Instead we're renting at 950 a month. So, we would love to own a home, not for investment purposes, but because we want our own home. Instead, for more money, we're paying someone elses mortgage. And this is on my OH having a credit score of 920. Banks do not want to lend. We had guarantours etc etc, but no one would give us a loan. Even with a decent credit score and 30% deposit, for affordable housing.

When my parents pass away, we'll be able to buy that house outright, but in reality, I'll spend 20 years with them in an annexe next to me (happily I should add) but it's not right that my generation have to wait for gifts or inheritance in order to be able to buy!

whatever can be concluded about this: no idea how old you are, no idea much the property was, no idea how much you earn, no idea how much you have saved for a deposit
and no idea what you mean about paying rent of 950 and spending 20 years living in an annex of your parents house

HAMISH_MCTAVISH

fawd1 wrote: »

we were denied a mortgage on it because the mortgage was 900 per month. Instead we're renting at 950 a month.

Thanks for posting a real world example of what we've known and been discussing on this board for some years now.

People are being forced to enrich their landlords instead of themselves, and rent is now more expensive than a mortgage payment in 90% of the UK. (and that's using a mortgage rate of 5%, not the fantasy 0.5% some posters like to portray)

That neatly encapsulates absolutely everything that is wrong with the mortgage lending market today.

Especially when.....

this is on my OH having a credit score of 920. Banks do not want to lend. We had guarantours etc etc, but no one would give us a loan. Even with a decent credit score and 30% deposit,

It's sadly the case that decent, creditworthy, applicants are being denied mortgages every day because of mortgage rationing.

A terrible state of affairs, and neither the housing market nor wider economy can recover while it remains the case.

the_flying_pig

HAMISH_MCTAVISH wrote: »

Thanks for posting a real world example of what we've known and been discussing on this board for some years now.

People are being forced to enrich their landlords instead of themselves, and rent is now more expensive than a mortgage payment in 90% of the UK. (and that's using a mortgage rate of 5%, not the fantasy 0.5% some posters like to portray)

That neatly encapsulates absolutely everything that is wrong with the mortgage lending market today.

Especially when.....



It's sadly the case that decent, creditworthy, applicants are being denied mortgages every day because of mortgage rationing.

A terrible state of affairs, and neither the housing market nor wider economy can recover while it remains the case.

this started playing in my head as soon as i started to read your post.

olly300

JonnyBravo wrote: »

Precisely to my point about asking for a reference of a past tenant. Possibly viewed as risky but as I've said it is probably only going to upset a bad landlord, so why is a tenant worried about that?

Some people just don't like asking.

JonnyBravo wrote: »

I don't use an an agency as I too have little faith in them and I'm not sure what they do for the money although ironically I do use them to find me a tenant. Past the first viewing and the credit checks though I do everything directly with the tenant.

Good to hear.

Though the credit checks just show a tenants pass financial history and like with shares pass performance is not an indication of future performance. I know landlords' who have been screwed by supposedly good tenants on paper.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Thanks for posting a real world example of what we've known and been discussing on this board for some years now.

Hardly real world.

It's a shared ownership mortgage. That's not a "normal" mortgage. It involves other factors. It also suggests that the poster is not paying more in rent than they would be if they owned the house.

Why? Well as its shared ownership the house would attract both a the mortgage payment at £900 a month, PLUS rent paid to the HA.

Therefore the £950 rental will be cheaper than the shared ownership, owned house. The 30% deposit would therefore be a much lower amount than you would assume, as it's 30% of the percentage bought.

The figures themselves sound rather extraordinary anyway, unless it's a London SO property. Plus the post doesn't make any sense, they are paying £950 rent but living in their parents annex?

Sorry to take a dump on the parade.

BobQ

fawd1 wrote: »

I'm on both sides. I found a house which was HA, part rent part buy, but we were denied a mortgage on it because the mortgage was 900 per month. Instead we're renting at 950 a month. So, we would love to own a home, not for investment purposes, but because we want our own home. Instead, for more money, we're paying someone elses mortgage. And this is on my OH having a credit score of 920. Banks do not want to lend. We had guarantours etc etc, but no one would give us a loan. Even with a decent credit score and 30% deposit, for affordable housing.

When my parents pass away, we'll be able to buy that house outright, but in reality, I'll spend 20 years with them in an annexe next to me (happily I should add) but it's not right that my generation have to wait for gifts or inheritance in order to be able to buy!

For my general education, would you mind explaining why the mortgage application was declined? On the face of it a 30% deposit and the ability to pay the mortgage (instead of the rent) suggests you must have been close, but surely they concluded that your joint income was either not stable enough or could not cover the additional costs of owning part of the home. Could you not of purchased a lower cost property rather than the one you wanted? Was it the shared ownership that prevented the loan?

I sympathise with the difficulty of getting a mortgage but basing your housing ownership strategy on an inheritance is rather presumptious in my view, although quite common among those with living parents who have assets. Many people have no prospect of inheritances and are quite content , I never inherited much from my parents and frankly I think society would be better if everyone left their estates to charity.