Boris announcement on new deposit scheme?

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Ah yes, "sentiment", unfortunately for you most people are glass-half-full types rather than your glass-half-empty which is why sentiment will have been a factor in the BBC article linked to earlier "House prices continued their post-lockdown recovery in August, notching up their highest monthly rise in more than 16 years, says the Nationwide."

https://www.landlordtoday.co.uk/breaking-news/2020/3/housing-transactions-set-to-drop-by-up-to-60-over-the-next-three-months

It's always funny when you link to articles that completely undermine your position!

From the article, "We do not expect any immediate impact on prices." so looks like a house price crash any time soon has been cancelled (again!) It's no wonder you always ignore the question when asked "is it crashy time yet?"

My position is that falling transactions skew the headline figures higher as less sales are made at bubble prices, pretty handy for the VI`s you would think, but I doubt very many people are buying into it now, they know property is a bubble, even SKY news has started saying it! So how can an article that predicts massive transaction drops possibly undermine my position!

iampetesmith

We bought a house at 90% LTV last year before all this mess started and I'm still glad we did it. You just have to tread carefully and plan for the worst, for a start we went for a smaller house than we could afford so we didn't overstretch the budget there.

The house we got is in good condition with a new roof, bathroom, kitchen, it's been recently rewired etc. so no major jobs. Also overpaying on the mortgage to bring it down quicker as well as saving in case of emergency.

The other thing I've got is unemployment insurance which pays out 50% of my wages if I get made redundant as there's no housing benefit. This is enough to cover the mortgage and bills, but obviously not the overpayments or luxuries so these would stop. 

Then once the mortgage is paid off, we have a permanent, stable home of our own.

Salemicus

For a laugh, I decided to check out your loony house price crash website. Their top article? How house prices are rising all around the world.

The commenters were grumbling that maybe governments will prop up house prices forever, that markets can remain irrational longer than you can remain solvent, and one of them was going to reluctantly buy a house. And this is in a community of faithful House Price Crash believers!

Does this worry you at all @Crashy_Time, that so many of your co-religionists are leaving the church?

MobileSaver

Crashy_Time said:

MobileSaver said:

It's always funny when you link to articles that completely undermine your position!

From the article, "We do not expect any immediate impact on prices." so looks like a house price crash any time soon has been cancelled (again!) It's no wonder you always ignore the question when asked "is it crashy time yet?"

So how can an article that predicts massive transaction drops possibly undermine my position!

Oh I see! So all these years you've been predicting "crashy time" you never once meant prices would crash, you were always talking about transactions? LOL

Of course your new position is just as flawed as your old one; why would less transactions skew prices higher rather than lower?

For the avoidance of doubt is Sky News now your "go to" expert on house prices?

nickstone

So when will this government backed mortgage scheme start? Will everyone be able to get a 95% mortgage even with bad credit?

grumiofoundation

nickstone said:

So when will this government backed mortgage scheme start? Will everyone be able to get a 95% mortgage even with bad credit?

It doesn’t exist yet, who knows if it ever will.

Comms69

nickstone said:

So when will this government backed mortgage scheme start? Will everyone be able to get a 95% mortgage even with bad credit?

to answer your second question - probably not, thankfully!

Hannimal

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

You just seem to have no idea what it is like for people who are stuck renting. 

Hannimal

grumiofoundation said:
For some who wants to ignore generalisers you make a lot of generalisations.
By definition someone who cannot save while renting (which according you you is everyone) is unaffected whether mortgage deposits are 5% or 25%.

I'm not sure that is right. Being on just over £40k pa and paying £1200pcm in rent, I certainly could only save a very small amount. I can afford far more now that I am paying mortgage payments that are about half of what I paid in rent. Renting is bloody expensive. 

Hannimal

If you have the kind of salary that you can afford to buy a house on a 5% deposit in London, you'll likely be fine. The average FTB in London forks out £453,385 for their new home. With a 5% deposit they'd need a mere £68 000 in savings. That means they'd need a mortgage of about £385,380 and therefore an annual salary pre tax of about £80 000. These people are fine in being able to afford mortgage costs even if they rise considerably. They are likely already paying more than that in rent.