House Sales rise in January, + 4k YoY

wotsthat

N1AK wrote: »

We got our first mortgage with a 40% deposit because of the interest rate offered and all fees waived. We could have bought with a 10% mortgage (mid-2011) but didn't want to pay the higher rate and fees.

If a 5% mortgage has an interest rate of Base Rate + 3.5% and a 20% mortgage has a rate of Base Rate + 1.5% then the interest saving from having a larger deposit is considerable.

I don't mean to imply that our circumstances are normal; however I think there are a considerable number of people who could get 5% or 10% mortgages but don't want to because of the charges involved.

I don't doubt there will be FTB's paying more than the minimum deposit they need to but the average FTB deposit is currently 80% and, on balance, I'd suggest that is very close to the minimum they can get away with with 95% loans going to buyers with excellent affordability ratios.

It would test credulity to believe that there are plenty of 95% mortgages freely available but that FTB's are rejecting these and choosing to save another 15% deposit as suggested by Graham.

shortchanged_2

Harry_Boyle wrote: »

How about yours?

So......

Do you want to debate about house prices , the economy and the recession on this "House Price, Recession & The Economy Discussion Board" or not?

You are looking increasingly desperate, SC.

Not with you I'm afraid.

shortchanged_2

Harry_Boyle wrote: »

How about yours?

Care to name a few?

Harry_Boyle

shortchanged wrote: »

Not with you I'm afraid.

Fine, then why did you engage with me in the first place?

grizzly1911

wotsthat wrote: »

I don't doubt there will be FTB's paying more than the minimum deposit they need to but the average FTB deposit is currently 80% and, on balance, I'd suggest that is very close to the minimum they can get away with with 95% loans going to buyers with excellent affordability ratios.

It would test credulity to believe that there are plenty of 95% mortgages freely available but that FTB's are rejecting these and choosing to save another 15% deposit as suggested by Graham.

Is that 80% deposit a typo?:eek:

You are right I doubt lenders are falling over themselves to lend to all and sundry. They never should have done a desperate sales menatlity and insatiable drive for market share made them reckless.

95% mortgages are in themselves not wrong providing they are properley assesed for risk and priced accordingly - expensively.

FTBs are ineviatbley going to have a higher risk weighting I would have thought, bit like new drivers, so I am not that surprised that they can't get mortgages (cover), easily or cheaply.

If a bigger deposit makes it easier and cheaper to get a mortgage then that makes sense. Not that dissimilar to getting a low powered car and building up your no claims.

I appreciate that 10 - 20% in certain areas of the country maybe an impossible ask. That isn't just the fault of the lenders though.

chewmylegoff

chucky wrote: »

I know I am right, thanks for agreeing. You probably need to educate this character too he seems very confused.

What am I confused about? (Aside from my obvious confusion about what you think I am confused about, of course).

chucky

Harry_Boyle wrote: »

How about yours?

So......

Do you want to debate about house prices , the economy and the recession on this "House Price, Recession & The Economy Discussion Board" or not?

You are looking increasingly desperate, SC.

Poor shortchanged. When it gets to the discuss part that's where it gets all cloudy for him. He just can't do it.

Thrugelmir

wotsthat wrote: »

I don't doubt there will be FTB's paying more than the minimum deposit they need to but the average FTB deposit is currently 80% and, on balance, I'd suggest that is very close to the minimum they can get away with with 95% loans going to buyers with excellent affordability ratios.

It would test credulity to believe that there are plenty of 95% mortgages freely available but that FTB's are rejecting these and choosing to save another 15% deposit as suggested by Graham.

House prices are a lot cheaper in some areas so far easier to raise a good deposit. Down South is where the unaffordable issue kicks in.

Harry_Boyle

Thrugelmir wrote: »

House prices are a lot cheaper in some areas so far easier to raise a good deposit. Down South is where the unaffordable issue kicks in.

Higher demand, greater job opportunities and robust market makes for lower risk which allows higher lending multiples.