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Debate House Prices
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Government repressing house prices.
Comments
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HAMISH_MCTAVISH wrote: »As an alternative viewpoint to the "government propping up house prices" claim that we see so often around here....
I disagree.....
Nothing unusual there then0 -
Hamish seems to be flapping around like a fish in a landing net.
I suppose most of us are a little obsessed, or at least interested in house prices on this forum, but Hamish seems to have a very bad case of HPI.
Housepriceitis.
It's OK Hamish, you may well get your 10%+ HPI back in the future, but until then, your "theories" will have to make do.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Graham_Devon wrote: »A 10% deposit was NOT the norm in 2007 Hamish.
The average FTB deposit in 2007 was right around 10% Graham.
From the CML....
As recently as 2007, first-time buyers paid deposits averaging 10% of the purchase price of the property but, by 2009, this had risen to 25%. More recently, however, there has been some reduction and average deposits now stand at 20%.
http://www.cml.org.uk/cml/publications/newsandviews/104/390You can get 10% deposits pretty easily
Rubbish.
Most applications for 10% deposit mortgages are rejected.
One major lender admitted to turning away 90 per cent of the applications it receives for 90 per cent LTV mortgages.
http://www.myfinances.co.uk/mortgages/2010/08/13/lenders-rejecting-90-of-low-deposit-mortgage-
Things have got slightly better since then, but not much.
As I said, just 1.8% of mortgages issued last year were for 90% LTV or above.
That is a pathetic level of lending at what is a historically normal, sensible and prudent deposit level.Please stop this complete and utter nonsense & stop pretending 25% deposits are the only option.
Please stop this complete and utter nonsense & stop pretending 10% deposit mortgages are readily available.
They're simply not.
The banks are only willing to issue tiny numbers of these products, no matter how many qualified people apply.“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: »And yet that was the norm in 2007.
The average FTB deposit in 2007 was 11%, and the average multiple never crossed 3.5 even at peak.
Figures can deceive and you know it Hamish.
What was the average FTB income multiple in 2007?
Obviously for the people already on the property ladder HPI was relative, it the one's at the bottom of the [STRIKE]pyramid[/STRIKE] chain who were worst affected hence why now there are such low numbers of FTB's.0 -
shortchanged wrote: »What was the average FTB income multiple in 2007?
Less than 3.5.
The income multiple for existing owners never crossed 3, even at peak.“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: »Less than 3.5.
The income multiple for existing owners never crossed 3, even at peak.
Hang on now Hamish, where does the figure of never crossing 3.5 times come from if both the figures you have just given are below 3.5?
Now that seriously does not add up.0 -
shortchanged wrote: »Hang on now Hamish, where does the figure of never crossing 3.5 times come from if both the figures you have just given are below 3.5?
Now that seriously does not add up.
The CML FTB data.
“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: »The CML FTB data.
Just wondering Hamish, why is the purchase price up £10,000 in 2010 from 2007.
I'm sorry Hamish but that certainly does not sound right. Those figures are a crock of s*it.0 -
What happens if 90% (and higher) LTV mortgages become readily available again ?
Hamish, I'd like your prediction.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
shortchanged wrote: »Just wondering Hamish, why is the purchase price up £10,000 in 2010 from 2007.
I'm sorry Hamish but that certainly does not sound right. Those figures are a crock of s*it.
To be fair, those figures are surely based on real purchases by FTBs. It may well be that FTBs are paying more for their first properties.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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