Nationwide to limit mortgages to first time buyers

sully1311

I've been saving for a deposit for around 3 years now with my partner (FTBs) and we've been looking for a house since January. Now it seems like we're going to have to pause our searches again this year (had to when lockdown started) as the 90% LTV market dries up. 
It's been a painful 2020 so far!

blue_max_3

I wonder how many sellers realise things are looking less rosy and are trying to bail before the pain hits later in the year. If they list at a good price (in todays terms), they are likely to get a sale. Properties which have been on the market pre-covid, are being discounted for sure.

danlightbulb

blue_max_3 said:

I wonder how many sellers realise things are looking less rosy and are trying to bail before the pain hits later in the year. If they list at a good price (in todays terms), they are likely to get a sale. Properties which have been on the market pre-covid, are being discounted for sure.

Not in my area, I'm seeing very optimistic pricing for some houses.
I spoke to my mortgage broker today, he said:

"I can confirm at the moment you most likely need a 15% for a quick process as 90% mortgages are hard to get and I have been turning people away for them. HSBC are offering mortgages at 90% but significantly limiting the number applications they are accepting which is causing issues."

Thrugelmir

HSBC have always been a conservative lender. Quality over quantity. Hence why they rode out the GFC so well. While the competition simply vanished. 

[Deleted User]

Crashy_Time 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.

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

The problem is many others need more than prices to come down, they also need to keep their jobs. And the reason for the correction (to the extent that there might be a correction) will be owing to massive unemployment.

blue_max_3

danlightbulb said:

Not in my area, I'm seeing very optimistic pricing for some houses.
I spoke to my mortgage broker today, he said:

"I can confirm at the moment you most likely need a 15% for a quick process as 90% mortgages are hard to get and I have been turning people away for them. HSBC are offering mortgages at 90% but significantly limiting the number applications they are accepting which is causing issues."

Maybe that's why they are optimistic - people rushing to get a mortgage while they can. Extra demand + limited stock = higher prices.
Where I am, a one bed flat is £400k. There's a nice semi for £3.25m. But there is very little on the market.

Crashy_Time

sully1311 said:

I've been saving for a deposit for around 3 years now with my partner (FTBs) and we've been looking for a house since January. Now it seems like we're going to have to pause our searches again this year (had to when lockdown started) as the 90% LTV market dries up. 
It's been a painful 2020 so far!

The banks are probably doing you a favour TBH.

mattyprice4004

blue_max_3 said:

danlightbulb said:

Not in my area, I'm seeing very optimistic pricing for some houses.
I spoke to my mortgage broker today, he said:

"I can confirm at the moment you most likely need a 15% for a quick process as 90% mortgages are hard to get and I have been turning people away for them. HSBC are offering mortgages at 90% but significantly limiting the number applications they are accepting which is causing issues."

Maybe that's why they are optimistic - people rushing to get a mortgage while they can. Extra demand + limited stock = higher prices.
Where I am, a one bed flat is £400k. There's a nice semi for £3.25m. But there is very little on the market.

That's bonkers money - am I safe assuming it's fairly central London? 

Crashy_Time

danlightbulb said:

blue_max_3 said:

I wonder how many sellers realise things are looking less rosy and are trying to bail before the pain hits later in the year. If they list at a good price (in todays terms), they are likely to get a sale. Properties which have been on the market pre-covid, are being discounted for sure.

Not in my area, I'm seeing very optimistic pricing for some houses.
I spoke to my mortgage broker today, he said:

"I can confirm at the moment you most likely need a 15% for a quick process as 90% mortgages are hard to get and I have been turning people away for them. HSBC are offering mortgages at 90% but significantly limiting the number applications they are accepting which is causing issues."

What postcode is that?

Crashy_Time

brett19852010 said:

Crashy_Time 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.

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

The problem is many others need more than prices to come down, they also need to keep their jobs. And the reason for the correction (to the extent that there might be a correction) will be owing to massive unemployment.

Keep their jobs so they can borrow what, 8 or 9 times their salary for basic shelter? Many people might be thinking a re-set is what we need now TBH. Jobs that are really needed will come back eventually.