Nationwide to limit mortgages to first time buyers

dani17

blue_max_3 said:

dani17 said:

@blue_max_3
it may be  diffent depending on the area. but i am not seeing any type of drop at all in the area i al intrested in. houses with intresting prices are sold very very quickly and only overpriced houses stay on the market. Even rightmove talked about an increase in the asking prices recently.

I'm sure it is dependent on area. Short supply certainly helps buoy up prices. You make a distinction between interesting prices and overpriced. A correctly priced house taking account of area, desirability and demand is the art. It will take the media to be writing headlines about a property crash to really shake things up. 

they were already writing since 2 months at least. talking about all the crash forecast. -16% BOE , CEBR -13% ... but nothing is going in that direction for the moment. This is a real particular crisis and no one really understands what is happening. We are unable to explain the behavior of the stock market, we are unable to explain the last drop of unemployment in the US .... It is not about only to the house market, it is about all the economy and the market.

Crumble2018

We completed on our flat purchase at the end of last year, and have a 95% mortgage with Nationwide.  VERY glad we did it then, even if the risk of negative equity is there.  We don't plan on moving any time soon anyway.

numbercruncher8

No offence, it's fairly naive to expect things to happen overnight.

Houses make up a significant part of people's wealth, you can expect that if prices are to fall there will be some big resistance on the way down, as well as it being euphoric on the way up.

Many of the metrics at the moment are not that meaningful, produced on limited amounts of data and in the case of Rightmove asking prices not even that telling about things.

You could point at the massive queues outside McDonalds recently and try to claim demand for their products has improved but it's obvious that much of this is pent-up demand and it is unlikely to be sustained going forward, not least because by the time summer comes market supply improves massively because everywhere else is open. IMO pretty much the same thing is happening with the housing markets: new listings slowed rapidly at the onset of the virus, down to virtually nothing at the peak. The taps are now being turned on and I am seeing more and more things coming to market.

MovingForwards

I had to put in 15% deposit for my home, even if I could have done 5% I wouldn't have felt comfortable knowing there wasn't much wiggle room for the first 5 years while building up equity and that's without Covid appearing.

There's no guarantee that properties will only go up in value, history has shown that.

MovingForwards

danlightbulb said:

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.

Not quite though is it? You've made offers on properties and then pulled out part-way through.

Besides, if prices fall the deposit you have may equate to 15% of the purchase price. 

Comms69

tatartan said:

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! 

It's a bit like saying "it'll snow tomorrow" every day, eventually you'll be right

danlightbulb

MovingForwards said:

danlightbulb said:

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.

Not quite though is it? You've made offers on properties and then pulled out part-way through.

Besides, if prices fall the deposit you have may equate to 15% of the purchase price. 

I only did that once and it was a difficult decision to pull out based the realisation of the refurbishment work that was needed on it. Ive learned from that and am now looking for houses which don't need much work and which are slightly cheaper. Obviously it doesn't leave much choice. Im seeing some very optimistic pricing right now in my area, not much is selling but then some I wouldn't expect to sell, have done, and some which are the 'good properties' have also sold quickly.

rash.m2k

numbercruncher8 said:

No offence, it's fairly naive to expect things to happen overnight.

Houses make up a significant part of people's wealth, you can expect that if prices are to fall there will be some big resistance on the way down, as well as it being euphoric on the way up.

Many of the metrics at the moment are not that meaningful, produced on limited amounts of data and in the case of Rightmove asking prices not even that telling about things.

You could point at the massive queues outside McDonalds recently and try to claim demand for their products has improved but it's obvious that much of this is pent-up demand and it is unlikely to be sustained going forward, not least because by the time summer comes market supply improves massively because everywhere else is open. IMO pretty much the same thing is happening with the housing markets: new listings slowed rapidly at the onset of the virus, down to virtually nothing at the peak. The taps are now being turned on and I am seeing more and more things coming to market.

A very sensible response - and my thoughts exactly. As soon as the lockdown happened, panic buying toilet paper started, now Farmfoods have got toilet paper super super cheap. I can see the same pattern with shops opening, huge queues outside sports direct, same thing will happen IMO, demand will die down and soon they'll be discounting. Property market is no different, just moves at a much slower pace, that's all. 
Mortgage holidays as well as furlough are keeping the housing market afloat, the real pain will be in the months after october once the redundancies start, who knows how bad it will be, but a 20% drop in GDP, inflation at 0.5% and reports of thousands of job losses, I'm not betting on house climbing the way they have.

Crashy_Time

danlightbulb said:

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.

As do many others hence the reason that house prices really need to correct at some point.

Crashy_Time

Comms69 said:

tatartan said:

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! 

It's a bit like saying "it'll snow tomorrow" every day, eventually you'll be right

No, it`s a bit like saying that if the largest economies in the world have serious problems then so does the rest of the world.