Homes in the UK still very cheap/affordable

ukcarper

ruperts wrote: »

Flats are generally slightly cheaper to buy than houses but you also have to take into account the great British service charges scam which adds another £200 per month on average to the costs of running a flat, making them significantly less affordable than terraces.

You miss the point again with your last paragraph. Affordability of monthly repayments is not the main barrier to getting a mortgage. The vast majority of renters (who despite your frankly bizarre claim of not being very numerous actually number in the millions) already pay as much in rent as they would pay in mortgage repayments on the same property. The main barrier is raising the typical requirement of a 20% deposit. While higher LTV's are theoretically available - as in they are advertised - practically no FTB's get accepted for those mortgages, and that's why the average FTB deposit is well over 30%. A requirement to raise a deposit of some £40,000 on a low quality terrace is absolutely unprecedented and all but impossible for one of the millions currently renting to achieve within a decade, by which time of course that requirement has risen by some 7% - 15% per year.

Have you any links to back up your figures according to CML in 2014 the average LTV for FTB was 85%

zagubov

seven-day-weekend wrote: »

We don't live in the rest of Europe so there is no point comparing them. The fact remains that for most of the UK, house prices are affordable.

Compared with what, then?;)

stator

cells wrote: »

They are 90% mortgages based on a 2.5% rate and 30 year term. In reality today you can get 90% mortgages for 1.99% rate and do it over 35 years which makes those monthly mortgage figures higher than what van actually be achieved

The idea that people can not save deposits due to high rents is also a silly notion maybe it is true for SOME people but it is not true for most people. High rents are also just a feature of London in most the regions you are looking at 500-800pm for rents

Exactly, rip off rents.
Comparing everything to London may make it seem cheap to you, but wages are a lot lower outside of London and it's still unaffordable for most people

cells

stator wrote: »

Exactly, rip off rents.
Comparing everything to London may make it seem cheap to you, but wages are a lot lower outside of London and it's still unaffordable for most people

why is £500 a month a rip off when lots of social rents are in the £400-500 a month mark?

cells

ruperts wrote: »

Flats are generally slightly cheaper to buy than houses but you also have to take into account the great British service charges scam which adds another £200 per month on average to the costs of running a flat, making them significantly less affordable than terraces.

You miss the point again with your last paragraph. Affordability of monthly repayments is not the main barrier to getting a mortgage. The vast majority of renters (who despite your frankly bizarre claim of not being very numerous actually number in the millions) already pay as much in rent as they would pay in mortgage repayments on the same property. The main barrier is raising the typical requirement of a 20% deposit. While higher LTV's are theoretically available - as in they are advertised - practically no FTB's get accepted for those mortgages, and that's why the average FTB deposit is well over 30%. A requirement to raise a deposit of some £40,000 on a low quality terrace is absolutely unprecedented and all but impossible for one of the millions currently renting to achieve within a decade, by which time of course that requirement has risen by some 7% - 15% per year.

What the average FTB deposit is has no bearing on what is available. 90% mortgages are available even 95% are available I know as a FTB couple I know bought a house for £85k with a 5% deposit mortgage.

The idea that saving while paying rent is impossible is also generally not true. That's not to say its possible for everyone I'm sure some people are not very MSE like a friend of mine that pays close to £2k a month rent on a one bed. He could cut that down towards £500pm if he really wanted to do so by renting a shared house with friends.

A 5% deposit is doable however I am happy for 100% mortgages to return. If your argument is that houses are very affordable/cheap just some people lack the skill or discipline to save 5-10% on a deposit then the solution can be 100% mortgages (or they becebece MSEs)

Graham_Devon

Cells.... you have all this fantastic advice....but for some reason restrict your fantastic findings to such a select bunch of people you haven't yet bored off this forum.

Theres other forums on here - many of those forums include people struggling to buy houses in the real world.

Maybe instead of restricting your fantastic findings and advice on how easy it is to get a mortgage to this single forum - you could share it with those in the real world? Those facing the problems you suggest simply don't exist?

Maybe try the home buying forum as a place to start. You never know, you could be the next Money Saving Expert. These people need you. They are struggling in the real world, not realising there is an alternative world which apparently you know all about but everyone can easily tap into.

cells

Graham_Devon wrote: »

These people need you. They are struggling in the real world

Unfortunately this is true there are lot of people struggling or have difficult lives in the UK but their problems have little or nothing to do with high house prices

For the few who do have house price problems the solution is simple, stay away from people like Graham and other house price crash cheerleaders who have been waiting since 1996 for their house price crash

stator

cells wrote: »

why is £500 a month a rip off when lots of social rents are in the £400-500 a month mark?

Private rented is much lower quality than social. But social rents are set at a percentage of market rates anyway, so you can't really compare them when one is set against the other. That's like saying inflation is low because CPI is lower than RPI

Jack_Johnson_the_acorn

Graham_Devon wrote: »

Cells.... you have all this fantastic advice....but for some reason restrict your fantastic findings to such a select bunch of people you haven't yet bored off this forum.

Theres other forums on here - many of those forums include people struggling to buy houses in the real world.

Maybe instead of restricting your fantastic findings and advice on how easy it is to get a mortgage to this single forum - you could share it with those in the real world? Those facing the problems you suggest simply don't exist?

Maybe try the home buying forum as a place to start. You never know, you could be the next Money Saving Expert. These people need you. They are struggling in the real world, not realising there is an alternative world which apparently you know all about but everyone can easily tap into.

Poor people don't generally buy expensive assets
..... see if you can connect the dots .......

The people that struggle need to either try harder or accept the hand they're dealt.

Speaking from a poor persons perspective here.

cells

Jack_Johnson_the_acorn wrote: »

Poor people don't generally buy expensive assets
..... see if you can connect the dots .......

The people that struggle need to either try harder or accept the hand they're dealt.

Speaking from a poor persons perspective here.

yes this is the truth some dont like it as it brings up questions of fairness but its the reality we live in

some will have it hard and some will have it easy and its not even just about money its about health and upbringing and even luck

fortunately the UK is a rich country with a lot of opportunity so while it cant guarantee everyone will be born healthy and to a good family and grow up in good conditions and get a £100k job and drive a new Bentley it can offer decent conditions and the ability to set up a life that will allow even better conditions for your kids.