Nationwide to limit mortgages to first time buyers

blue_max_3

https://www.theguardian.com/business/2020/jun/17/nationwide-triples-minimum-deposit-for-uk-first-time-buyers
Wonder if this is a forecast of drops ahead? 

[Deleted User]

Interesting reading thanks for posting 

danlightbulb

Spent almost 8 years saving for a 10% deposit which I now have. Really would be sods law if prices start dropping but I still cant buy because deposits have increased to 15% or even 20% minimum. 

10% of £180k house = £18k. Have it.
20% of £150k house = £30k. Dont have it.

Just as I get in a position to buy, the universe throws a curve ball in.

To take advantage of possible falling prices I need 90% mortgages to still be available.

Davesnave

It's common sense caution on their part. Short term pent up demand will be satisfied and then a more accurate picture will emerge.

numbercruncher8

Ominous if other banks follow.
The effect of leverage is quite high.
At 95%, a £10,000 deposit could get a £200,000 house.

What does that deposit get if the minimum was 15%? Work it out and you can see that in an area where £200k is a FTB property, that is unworkable and requires more money from elsewhere. 

I happen to think that there will be more free money schemes coming in from the government should 15% become the new 10%. The crisis is a great excuse to allow a little air out of the house market - 10-20% simply reverses the gains of the last few years and most people will still sit on large gains. Large scale falls would simply see them being voted out of power.

Vestraun

Wow, that seems quite a severe response, I wonder if nationwide are seeing something that we’re not. 

Socajam

Vestraun said:

Wow, that seems quite a severe response, I wonder if nationwide are seeing something that we’re not. 

The crystal ball is clear, we are in for a rough ride and I cannot blame them

tatartan

Vestraun said:

Wow, that seems quite a severe response, I wonder if nationwide are seeing something that we’re not. 

Speak for yourself, plenty on here have been saying this for weeks if not months. House of cards. Crash and co sound more credible as the days go by! 

blue_max_3

I actually think Nationwide are a bit late to the party! They portray it as protecting the buyer, but I think they are just covering their own asses!
No one really knows what will happen. The property market has a life of it's own.

dani17

this is already the case since march. most of the banks already removed all the high LTV products. Halifax no more 85%, Natwest no more 80% .... but still no real effect on the market, may be offset by the mortgage holidays on the vendor's side.

blue_max_3

dani17 said:

this is already the case since march. most of the banks already removed all the high LTV products. Halifax no more 85%, Natwest no more 80% .... but still no real effect on the market, may be offset by the mortgage holidays on the vendor's side.

I wouldn't say no real effect. I am seeing more reductions day by day now. It's not clear whether the valuations were done optimistically or to take account of the market currently though. Ultimately, it's how many people are chasing the same properties that drive up or down the market.