Barclays just rang and told me all new mortgages require 40% deposits now

Crashy_Time

Why would anyone panic at the prospect of lower house prices?

bigmortgage

Crashy_Time said:

Why would anyone panic at the prospect of lower house prices?

Apart from a few million people who might stand to lose their life savings and more if they were to fall into negative equity, I shouldn't think anyone would panic at the prospect of lower house prices.

Crashy_Time

bigmortgage said:

Crashy_Time said:

Why would anyone panic at the prospect of lower house prices?

Apart from a few million people who might stand to lose their life savings and more if they were to fall into negative equity, I shouldn't think anyone would panic at the prospect of lower house prices.

You mean lose mortgage debt/equity that they hoped one day to liquidate as "life savings"? "Life savings" should never be stored in one of the most illiquid assets there is........the fact that this needs to be continually spelled out on a website full of posters who consider themselves financially aware and savvy is truly shocking to me. Life savings should be diversified across many asset classes and sectors of the economy.

bigmortgage

Crashy_Time said:

bigmortgage said:

Crashy_Time said:

Why would anyone panic at the prospect of lower house prices?

Apart from a few million people who might stand to lose their life savings and more if they were to fall into negative equity, I shouldn't think anyone would panic at the prospect of lower house prices.

You mean lose mortgage debt/equity that they hoped one day to liquidate as "life savings"? "Life savings" should never be stored in one of the most illiquid assets there is........the fact that this needs to be continually spelled out on a website full of posters who consider themselves financially aware and savvy is truly shocking to me. Life savings should be diversified across many asset classes and sectors of the economy.

Some people choose to pay rent their whole lives and what they have left invest in a pension, or if wealthy enough in a diversified portfolio managed by their wealth management advisor.

Others choose to save up and buy a house. The saving in rent being more for most people than the return on any investment made when taking the rent they pay into account.

Not seen this spelled out before as most people, especially on a website full of posters who consider themselves financially aware, understand this.

Crashy_Time

bigmortgage said:

Crashy_Time said:

bigmortgage said:

Crashy_Time said:

Why would anyone panic at the prospect of lower house prices?

Apart from a few million people who might stand to lose their life savings and more if they were to fall into negative equity, I shouldn't think anyone would panic at the prospect of lower house prices.

You mean lose mortgage debt/equity that they hoped one day to liquidate as "life savings"? "Life savings" should never be stored in one of the most illiquid assets there is........the fact that this needs to be continually spelled out on a website full of posters who consider themselves financially aware and savvy is truly shocking to me. Life savings should be diversified across many asset classes and sectors of the economy.

Some people choose to pay rent their whole lives and what they have left invest in a pension, or if wealthy enough in a diversified portfolio managed by their wealth management advisor.

Others choose to save up and buy a house. The saving in rent being more for most people than the return on any investment made when taking the rent they pay into account.

Not seen this spelled out before as most people, especially on a website full of posters who consider themselves financially aware, understand this.

Why would you need a "wealth management advisor" to invest in a diversified portfolio, and what has anything you posted got to do with property being one of the most illiquid investments there is, notoriously hard to sell in a downturn?

OldMusicGuy

bigmortgage said:

Some people choose to pay rent their whole lives and what they have left invest in a pension, or if wealthy enough in a diversified portfolio managed by their wealth management advisor.

Others choose to save up and buy a house. The saving in rent being more for most people than the return on any investment made when taking the rent they pay into account.

Not seen this spelled out before as most people, especially on a website full of posters who consider themselves financially aware, understand this.

You've not seen it spelled out before because it's not what the vast majority of people choose to do. It's not an either/or choice. In fact with the new legislation, everyone that is working now pays into a workplace pension along with their employer. Whether they rent or buy is a choice they make irrespective of their pension provision.

Certainly some people might choose to invest excess savings into property rather than make more pension contributions. I am currently renting and my landlord has three BTLs rather than a large pension pot. However, I only have one house (we are renting in between selling and buying) and have put my excess savings into a diversified pension portfolio, which I manage myself (no IFA or wealth manager needed).

Crashy_Time

OldMusicGuy said:

bigmortgage said:

Some people choose to pay rent their whole lives and what they have left invest in a pension, or if wealthy enough in a diversified portfolio managed by their wealth management advisor.

Others choose to save up and buy a house. The saving in rent being more for most people than the return on any investment made when taking the rent they pay into account.

Not seen this spelled out before as most people, especially on a website full of posters who consider themselves financially aware, understand this.

You've not seen it spelled out before because it's not what the vast majority of people choose to do. It's not an either/or choice. In fact with the new legislation, everyone that is working now pays into a workplace pension along with their employer. Whether they rent or buy is a choice they make irrespective of their pension provision.

Certainly some people might choose to invest excess savings into property rather than make more pension contributions. I am currently renting and my landlord has three BTLs rather than a large pension pot. However, I only have one house (we are renting in between selling and buying) and have put my excess savings into a diversified pension portfolio, which I manage myself (no IFA or wealth manager needed).

Is the landlord now wishing he had a large diversified portfolio instead of three potential voids? You can opt out of the workplace pension, they enrol you again after three years but you can still opt out out again if you wish to.

OldMusicGuy

Crashy_Time said:

Is the landlord now wishing he had a large diversified portfolio instead of three potential voids? You can opt out of the workplace pension, they enrol you again after three years but you can still opt out out again if you wish to.

LOL, maybe. I met him briefly and he said he "gave up" on investments as his pension was in Equitable Life, and did BTL instead. To be fair he probably owns the properties outright but even so he could be looking at some voids now. We have just signed a five month extension after our initial six month term was up, I bet he was glad we did that!

lalna

Just to update Halifax has also done the same now

hazyjo

lalna said:

Just to update Halifax has also done the same now

Not trying to derail too much, but it's what I would have expected before anyone mentioned it. Surely it's logical they will want much bigger deposits, and it wouldn't surprise me if they withdraw FTB deals/products for a while. Nothing's happening as we're all holed up, and I can't see anyone wanting to encourage FTBs to buy right now, even if we weren't. Yep, the India thing makes sense too and is probably contributing. The banks won't want to be blamed again though so I totally get why they would want to cover their backsides.