We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
What percentage of mortgages issued should require only a 10% deposit?
Comments
-
A moderate amount.... 30%According to what you have said before, demand for property outstrips supply. If this is true, then limiting the demand for the borrowed money to buy the limited amount of property seems to be a way of preventing higher demand (due to speculation) and higher demand for more lending (due to increased prices, caused by increased supply of funds).
Which causes record low house building and forces a generation to enrich their landlords.
Making the housing crisis far worse than it needs to be.
You're not changing housing need by limiting lending. You're just worsening the shortage.
You're only artificially throttling effective demand, and in so doing you're causing rents to soar, house building to tumble, and a generation to be stuck in rented enriching their landlords.“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 -
Most.... 75%HAMISH_MCTAVISH wrote: »Which causes record low house building and forces a generation to enrich their landlords.
So you say, many times.
Chicken and egg situation, it seems.
So, Hamish, what would you say would happen to house prices if 95% LTV mortgages were to become widely available ?
And the same question for the price of renting ?
You claim to have a high quality crystal ball, please use it.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »Which causes record low house building and forces a generation to enrich their landlords.
Thats a symptom only of recent events.
We've never had such low building, even when credit was much harder to get and more costly in decades gone, so I don't think you can state lower lending ultimately causes lower building, as this is probably the only period in history to show this. History shows many other scenarios.
As with everything, the low levels of building are at low levels because of many reasons. The biggest one being the lack of social building.0 -
A moderate amount.... 30%Graham_Devon wrote: »Thats a symptom only of recent events.
We've never had such low building, even when credit was much harder to get and more costly in decades gone, so I don't think you can state lower lending ultimately causes lower building, as this is probably the only period in history to show this. History shows many other scenarios.
As with everything, the low levels of building are at low levels because of many reasons. The biggest one being the lack of social building.
Alrighty then...
I'm sure it's just a complete coincidence that house building fell off a cliff when the credit crunch happened Graham. :rotfl:
Oh dearie me....
You're wriggling around like a worm on a hook Graham.
Why not just admit what most of the country knows full well, that throttling lending has caused both house building and FTB numbers to fall off a cliff...“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: »
At the historically normal, prudent, sensible, and low risk level of a 5% to 10% deposit.
Where do you get this presumption from?
Do you come from an bank building society underwriting policy background.
How long in history are you accounting for?"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 -
A moderate amount.... 30%Don't worry, neither did the usual suspects who are trying to twist and squirm out of not saying that 90% and 100% mortgages are absolutely fine in a functioning market.
Yep.
Graham has taken his usual sophistry to a whole new level in this thread.“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: »Alrighty then...
I'm sure it's just a complete coincidence that house building fell off a cliff when the credit crunch happened Graham. :rotfl:
There have been other credit events in the past. You need to show that house building has fallen off a cliff when all of those happened too to prove your theory.
My point wasn't that house building hasn't dropped, rather than I feel you are wrong to say when credit tightens, this causes house building to drop. I'm saying in the recent past it has, but tighter credit is not the only thing to blame here. It's a symptom, rather than the symptom.
Another symptom is the stark truth that even if 95% mortgage lending was the norm, at the prices today, many people would still not be able to afford to service such loans due to the price of the house. This is one of the reasons 110%+ mortgages came along....because 95% was too much for people.
You've also got the problem of interest only mortgages have been removed, therefore 95% repayment mortgages are a lot more expensive than a 115% interest only mortgage.
Put simply, 95% mortgages are fine, but you are moaning about the lack of them, while seemingly not realising that many can't afford the repayments on them. The only reason they could "before" was due to interest only mortgages reducing the monthly spend.0 -
It's embarrassing to say the least.HAMISH_MCTAVISH wrote: »Yep.
Graham has taken his usual sophistry to a whole new level in this thread.
It's a simple Yes or No if he's agrees or disagrees.0 -
A moderate amount.... 30%grizzly1911 wrote: »How long in history are you accounting for?
I was offered a 95% mortgage in 1990, my parents were offered a 95% mortgage in 1967, and 100% mortgages were available at least as far back as the early 1980's.
However 90% mortgages were on offer from the 1930's onwards.
In fact, Taylor Woodrow offered the "Wonderhouse" in 1935 for £445, and the initial deposit required was just £25. So around 6%.
Is that long enough for you?
If you prefer we can go back to the late 1800's, when Cadbury offered mortgages to his workers at 3.5% interest, with only a minimal deposit required...;)“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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.4K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards