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What percentage of mortgages issued should require only a 10% deposit?
Comments
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A moderate amount.... 30%Anyway, here we are 8 pages in and 80% of poll respondents believe we should make available vastly more 10% deposit mortgages than the circa 2% we do today.
Indeed, 60% believe the number should be between 30% and 75% of mortgages.
Which is interesting.
As only 15.6% of mortgages issued in 2007 were at 10% or lower deposits....
“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: »No, absolutely not.
The vast majority of renters pay a similar or greater amount in rent as they would for a full repayment mortgage.
Well that's a lie for a start.
To rent:
http://www.rightmove.co.uk/property-to-rent/property-25759800.html
£725pcm.
Equivalent house to buy:
http://www.rightmove.co.uk/property-for-sale/property-25338117.html
£1,121 per month on a 5.5% mortgage at 95% LTV
£1,062 per month on a 5.5% mortgage at 90% LTV
Probably, what you are saying, which works, is you can buy a lesser house than you rent for the equivalent rent money.0 -
Comparing 2 very different properties on 2 different streets to try to prove a point when Devon has been exposed as a liar once again is desperate.Graham_Devon wrote: »Well that's a lie for a start.
To rent:
http://www.rightmove.co.uk/property-to-rent/property-25759800.html
£725pcm.
Equivalent house to buy:
http://www.rightmove.co.uk/property-for-sale/property-25338117.html
£1,121 per month on a 5.5% mortgage at 95% LTV
£1,062 per month on a 5.5% mortgage at 90% LTV0 -
They are both 3 bed semi's with garages in Exeter.
The variables of a street won't make a £400 difference per month. Point stands.0 -
You do realise that properties in some streets are better to buy in than others or is Exeter different to the rest of the country?Graham_Devon wrote: »They are both 3 bed semi's with garages in Exeter.0 -
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Graham_Devon wrote: »Well that's a lie for a start.
To rent:
http://www.rightmove.co.uk/property-to-rent/property-25759800.html
£725pcm.
Equivalent house to buy:
http://www.rightmove.co.uk/property-for-sale/property-25338117.html
£1,121 per month on a 5.5% mortgage at 95% LTV
£1,062 per month on a 5.5% mortgage at 90% LTV
Probably, what you are saying, which works, is you can buy a lesser house than you rent for the equivalent rent money.
Why not compare like for like? You're from down there - you must know they aren't comparable areas.
The house for rent (10 Sargent Close, Exeter) sold for £151,000 in December 2012.
£880/ month 5.5% and 95% LTV
£834/ month 5.5% and 90% LTV
It's up for rent at £795.
Can't see them getting that rent but can't see an investor paying 5.5% either.
A more realistic interest rate makes a massive difference - 4.5% interest knocks more than £100/ month off.0 -
A moderate amount.... 30%Graham_Devon wrote: »Well that's a lie for a start.
.
Oh dear....
http://www.huffingtonpost.co.uk/2013/02/15/renting-home-expensive_n_2695016.html?utm_hp_ref=ukHalifax said the average monthly costs associated with buying a three-bedroomed house stood at £621 in December, which is £120 cheaper than the typical monthly rent of £741 on a similar property.
Average buying costs include mortgage payments, income lost by funding a deposit rather than having savings and spending on repairs, using figures from Halifax's own database as well as official sources.
Buying was found to be more affordable than renting in every UK region.“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 -
Why not compare like for like? You're from down there - you must know they aren't comparable areas.
The house for rent (10 Sargent Close, Exeter) sold for £151,000 in December 2012.
£880/ month 5.5% and 95% LTV
£834/ month 5.5% and 90% LTV
It's up for rent at £795.
Can't see them getting that rent but can't see an investor paying 5.5% either.
A more realistic interest rate makes a massive difference - 4.5% interest knocks more than £100/ month off.
Still not cheaper though is it, even with your best attempt. 4.5% interest is nice, but not that realistic for such low deposits. Dunno why you are looking at what an investor may pay on mortgage rates.0 -
HAMISH_MCTAVISH wrote: »
Average mortgage costs are NOT the same as what you are talking about here, which are more expensive high LTV mortgages.0
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