£20,000 deposit but no mortgage!

BML

Not barking mad yet although that will come if I ever take any notice of many of the ill informed threads on this particular post. If you were to do some simple research by keying in headings such as, "What Housing Crisis? or edited versions of that you will discover that there is no housing crisis and therefore no lack of homes, but a skewed market. This country does not have a housing shortage. As you will find if you do as I suggest you will discover that a number of respected economic commentators state that Britain does not have a housing shortage. We have a problem with the cost not the availability of homes. This can’t be solved by building more houses, because it is not caused by an insufficiency of houses.

BoGoF

BML wrote: »

Not barking mad yet although that will come if I ever take any notice of many of the ill informed threads on this particular post. If you were to do some simple research by keying in headings such as, "What Housing Crisis? or edited versions of that you will discover that there is no housing crisis and therefore no lack of homes, but a skewed market. This country does not have a housing shortage. As you will find if you do as I suggest you will discover that a number of respected economic commentators state that Britain does not have a housing shortage. We have a problem with the cost not the availability of homes. This can’t be solved by building more houses, because it is not caused by an insufficiency of houses.

Not sure what that little rant has to do with your OP since you freely admit you know nothing sbout the applicant in terms of income, debt and amount of mortgage applied for. All I know is I know I could borrow more than enough for the home I need (need not want).

The problem is people want the 'shiny new build' detached 3 or 4 bedroom when the only need a 2 bed semi

ViolaLass

BML wrote: »

Another Troll like statement coming up. "Presumably the son of your friend for one..."
Your reply is illogical because by the very fact that the lad is unable to obtain a mortgage the demand is negative.

If demand were negative, prices would fall.

Bermonia

You suggest googling housing crisis to show that it is a myth... seems google along with everyone on this thread is inclined to disagree with you.

The simple fact is that more housing IS required, supply equals demand and therefore drives up value - any basic comprehension of economics would’ve told you this.

babyblade41

BML wrote: »

I wouldn’t be so impertinent as to ask direct questions of my acquaintance but I know that his son is a Civil Engineer two years into his first job in a booming industry. Looking through the vacancies columns he should be able to earn around £35,000 Salary £35,000 maximum borrowing at 4.5 salary £157,500 which means that living in Oxfordshire he doesn't have a cats chance in hell. Could the solution to my question simply be that failure to be able to obtain a mortgage can be laid at the feet of house price inflation?

I am in Oxfordshire and I doubt he could get a mortgage with 20k deposit ..I think we are in the highest price region for FTB
He'd need a lot bigger deposit than 20k

CharllieSays

If he can't afford a house where he works and there aren't jobs in the areas he can afford to buy, then perhaps he will have to join other millenials in buying to let a home in a cheaper area, while renting in a house/flatshare where he works? When his tenants have paid off enough of the original house mortgage and he has had time to save a bit more of a deposit, he can think about selling up and buying somewhere closer to the jobs.

csgohan4

I couldn't afford to buy in London, So I moved out of London and bought a nicer house which for the price could barely get a studio apartment in London

Op you can't buy what you can't afford.. Simples