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House Sales rise in January, + 4k YoY
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://www.bbc.co.uk/news/business-21546534Property sales in the UK were slightly higher in January than during the same month a year earlier, HM Revenue and Customs (HMRC) figures show.
There were 64,490 completed sales during the month, up from 60,530 in January 2012..
Of course, FTB-s remain penalised by absurdly high deposit % requirements.
But many first-time buyers are still finding it difficult to get a foothold on the property ladder, as lenders demand high deposits.
The current average deposit for FTB-s is 20%, which equates to a circa £30,000 deposit required.
With historically normal, prudent and sensible 5% deposits, that would be just £7500.
Just 0.38% of mortgages issued last year were for 95% LTV, and just 1.8% at 90% LTV, so mortgage rationing continues to be the biggest problem for FTB-s.
“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”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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HAMISH_MCTAVISH wrote: »With historically normal, prudent and sensible 5% deposits, that would be just £7500.
I have to envy your doggedness. You'd think after years of having your arguments dismissed for being fictional you'd look for a more effective strategy but you're made of sterner stuff
5% mortgages are not historically normal. I'd debate if they were currently prudent or sensible but at least those are a matter of opinion.Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...0 -
I have to envy your doggedness. You'd think after years of having your arguments dismissed for being fictional you'd look for a more effective strategy but you're made of sterner stuff
5% mortgages are not historically normal. I'd debate if they were currently prudent or sensible but at least those are a matter of opinion.
+1 for what ^^^ says.HAMISH_MCTAVISH wrote: »
The current average deposit for FTB-s is 20%, which equates to a circa £30,000 deposit required.
With historically normal, prudent and sensible 5% deposits, that would be just £7500.
Just 0.38% of mortgages issued last year were for 95% LTV, and just 1.8% at 90% LTV, so mortgage rationing continues to be the biggest problem for FTB-s.
Where do you get this notion that 5% is normal?
They may have been used while lenders fought a risky war to keep market share in a mad and reckless period but that doesn't make them normal.
Lenders were allowed to push the boundary, for a period, that is all and sense prevailed eventually."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Id say that 10% is norm for FTBs.0
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I'd say 25% deposits are normal for FTBs, everything else is political spin and lies made up by the establishment who seek to destroy us with FIAT currency. Damned Italian car manufacturer and their dodgy paper money!0
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HAMISH_MCTAVISH wrote: »
The current average deposit for FTB-s is 20%, which equates to a circa £30,000 deposit required.
No no no no no.
The average deposit required is very different to that of the average deposit offered.
Confusing the two is silly. It doesn't add weight to what you are saying about rationing.0 -
Graham_Devon wrote: »No no no no no.
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Just 0.38% of mortgages issued last year were for 95% LTV, and just 1.8% at 90% LTV, so mortgage rationing continues to be the biggest problem for FTB-s.
Numbers speak for themselves Graham.“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: »Just 0.38% of mortgages issued last year were for 95% LTV, and just 1.8% at 90% LTV, so mortgage rationing continues to be the biggest problem for FTB-s.
Numbers speak for themselves Graham.
do you think 90% or 95% mortgages are a good idea?Ex HPC fool0 -
Numbers are one thing.
Reality is another.
How many are opting for 95% mortgages?
Since the 2008 crisis, the appeal of housing and the desperation therefore to pay any price to get into it isn't as large as it used to be.
Times change, with everything.
People are not doing everything possible to pile into housing anymore. People are doing far more to protect themselves now. Hence these costly mortgages are not in as much demand.
Not by the people who can turn demand into a sale anyway. They want value for money over and above everything else now. 95% LTV loans are not that. The appeal of lower LTV (and higher deposit) loans however is much greater than it was in 2008.
95% loans are only really viable (financially) for those who need to act NOW for whatever reason.0 -
HAMISH_MCTAVISH wrote: »The current average deposit for FTB-s is 20%, which equates to a circa £30,000 deposit required.
Yep we put down 20% on our first house and had another 20% to fit out, modernise and give us some breathing space. Can't remeber the multiplier OTTOMH but well within the 3.5/3.0x."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Yes they are a good idea...james_toney wrote: »do you think 90% or 95% mortgages are a good idea?
if you can afford the repayments.0
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