The Guardian: UK mortgage lender [Skipton] to offer first 100% loans since 2008 crisis

Schwarzwald

Sunsaru said:

People keep saying that  FTB's tend not to have kids but a lot of FTB's do and according to this, if I was to try and use this scheme based on what I used to pay in rent (or even what my rent would be now), I'd only be able to afford a 1 bed flat or an over 55's 2 bed house in my local area. If I was to expend to the whole town, then I'd be able to get one of those house that had no floors, windows, bathroom.....

I'm well under 55 and I have a child. 

I'm out...

average age of first child is well below average age of first time buyer in the UK now, especially after property price rallye in recent years ...

Sarah1Mitty2

housebuyer143 said:

Whitlane said:

I don’t think they’ll get much uptake.

I’ve put the rents in that I charge my tenants and compared it to the approximate value of my properties. The amount Skipton are prepared to lend is way short on all of my properties.  The buyer would therefore need to find a large deposit anyway.

But if they have more than 5% they are not eligible anyway, so the property they can get is basically ruling out the majority.

My sister pays £1200 rent, the equivalent property is £400k. The cheapest 3 bed she can get is £300k... Skipton will lend £224k. The numbers will not stack for the majority.

Cheapest 2 bed in my area is about £180k. Rents £700. Still not enough to buy a place 🤷‍♂️

I know of a few examples recently of people moving back to parents, saving the 1200, and waiting for interest rates to do their work, bad news for landlords and potential sellers really, Skipton obviously know which way the market winds are blowing.

Sarah1Mitty2

MultiFuelBurner said:

Sarah1Mitty2 said:

housebuyer143 said:

Whitlane said:

I don’t think they’ll get much uptake.

I’ve put the rents in that I charge my tenants and compared it to the approximate value of my properties. The amount Skipton are prepared to lend is way short on all of my properties.  The buyer would therefore need to find a large deposit anyway.

But if they have more than 5% they are not eligible anyway, so the property they can get is basically ruling out the majority.

My sister pays £1200 rent, the equivalent property is £400k. The cheapest 3 bed she can get is £300k... Skipton will lend £224k. The numbers will not stack for the majority.

Cheapest 2 bed in my area is about £180k. Rents £700. Still not enough to buy a place 🤷‍♂️

I know of a few examples recently of people moving back to parents, saving the 1200, and waiting for interest rates to do their work, bad news for landlords and potential sellers really, Skipton obviously know which way the market winds are blowing.

Strange as rents are increasing everywhere that I monitor across three counties.

Which area is it that rents have fallen already?

For a couple of the people moving home to their parents spare room the rent had fallen to zero, one person was saving about 12 or 13 hundred a month.

MultiFuelBurner

Sarah1Mitty2 said:

MultiFuelBurner said:

Sarah1Mitty2 said:

housebuyer143 said:

Whitlane said:

I don’t think they’ll get much uptake.

I’ve put the rents in that I charge my tenants and compared it to the approximate value of my properties. The amount Skipton are prepared to lend is way short on all of my properties.  The buyer would therefore need to find a large deposit anyway.

But if they have more than 5% they are not eligible anyway, so the property they can get is basically ruling out the majority.

My sister pays £1200 rent, the equivalent property is £400k. The cheapest 3 bed she can get is £300k... Skipton will lend £224k. The numbers will not stack for the majority.

Cheapest 2 bed in my area is about £180k. Rents £700. Still not enough to buy a place 🤷‍♂️

I know of a few examples recently of people moving back to parents, saving the 1200, and waiting for interest rates to do their work, bad news for landlords and potential sellers really, Skipton obviously know which way the market winds are blowing.

Strange as rents are increasing everywhere that I monitor across three counties.

Which area is it that rents have fallen already?

For a couple of the people moving home to their parents spare room the rent had fallen to zero, one person was saving about 12 or 13 hundred a month.

Do you mean they are saving up a deposit to buy?

Or do you think rents will decrease as well?

jimbog

Sarah1Mitty2 said:

housebuyer143 said:

Whitlane said:

I don’t think they’ll get much uptake.

I’ve put the rents in that I charge my tenants and compared it to the approximate value of my properties. The amount Skipton are prepared to lend is way short on all of my properties.  The buyer would therefore need to find a large deposit anyway.

But if they have more than 5% they are not eligible anyway, so the property they can get is basically ruling out the majority.

My sister pays £1200 rent, the equivalent property is £400k. The cheapest 3 bed she can get is £300k... Skipton will lend £224k. The numbers will not stack for the majority.

Cheapest 2 bed in my area is about £180k. Rents £700. Still not enough to buy a place 🤷‍♂️

I know of a few examples recently of people moving back to parents, saving the 1200, and waiting for interest rates to do their work

Moving back into parent's spare room to wait for a price crash. What could possibly go wrong?

Simonon77

For a couple of the people moving home to their parents spare room the rent had fallen to zero, one person was saving about 12 or 13 hundred a month.

What about those who are in a couple and live together, and don't want to move apart to parents? Or parents who don't want their kids moving back in rent free. Or parents who live nowhere near where the kids work? 

I can see it can make sense in some situations, but if you have already left home and used to renting your own place, then I can't see living back at home being very appealing

Sarah1Mitty2

MultiFuelBurner said:

Sarah1Mitty2 said:

MultiFuelBurner said:

Sarah1Mitty2 said:

housebuyer143 said:

Whitlane said:

I don’t think they’ll get much uptake.

I’ve put the rents in that I charge my tenants and compared it to the approximate value of my properties. The amount Skipton are prepared to lend is way short on all of my properties.  The buyer would therefore need to find a large deposit anyway.

But if they have more than 5% they are not eligible anyway, so the property they can get is basically ruling out the majority.

My sister pays £1200 rent, the equivalent property is £400k. The cheapest 3 bed she can get is £300k... Skipton will lend £224k. The numbers will not stack for the majority.

Cheapest 2 bed in my area is about £180k. Rents £700. Still not enough to buy a place 🤷‍♂️

I know of a few examples recently of people moving back to parents, saving the 1200, and waiting for interest rates to do their work, bad news for landlords and potential sellers really, Skipton obviously know which way the market winds are blowing.

Strange as rents are increasing everywhere that I monitor across three counties.

Which area is it that rents have fallen already?

For a couple of the people moving home to their parents spare room the rent had fallen to zero, one person was saving about 12 or 13 hundred a month.

Do you mean they are saving up a deposit to buy?

Or do you think rents will decrease as well?

I think one of them said they were saving up to buy for cash when the time is right, bear in mind that this is 1200 quid a month saved on top of what they were already saving, bang that into a money market account and you are probably making better returns than most BTL?

Sarah1Mitty2

jimbog said:

Sarah1Mitty2 said:

housebuyer143 said:

Whitlane said:

I don’t think they’ll get much uptake.

I’ve put the rents in that I charge my tenants and compared it to the approximate value of my properties. The amount Skipton are prepared to lend is way short on all of my properties.  The buyer would therefore need to find a large deposit anyway.

But if they have more than 5% they are not eligible anyway, so the property they can get is basically ruling out the majority.

My sister pays £1200 rent, the equivalent property is £400k. The cheapest 3 bed she can get is £300k... Skipton will lend £224k. The numbers will not stack for the majority.

Cheapest 2 bed in my area is about £180k. Rents £700. Still not enough to buy a place 🤷‍♂️

I know of a few examples recently of people moving back to parents, saving the 1200, and waiting for interest rates to do their work

Moving back into parent's spare room to wait for a price crash. What could possibly go wrong?

Paying a landlord 1200 quid a month for a so so flat (or worse being attached to mortgage debt for a so so flat at 1200 quid a month and rising!) with a recession looming, what could possibly go wrong? No wonder people who can are flocking back to their parents.

Sarah1Mitty2

Simonon77 said:

For a couple of the people moving home to their parents spare room the rent had fallen to zero, one person was saving about 12 or 13 hundred a month.

What about those who are in a couple and live together, and don't want to move apart to parents? Or parents who don't want their kids moving back in rent free. Or parents who live nowhere near where the kids work? 

I can see it can make sense in some situations, but if you have already left home and used to renting your own place, then I can't see living back at home being very appealing

 These people wouldn`t be in the group who can or want to move back to parents, but if a couple of renters in their block did it and the landlords dropped the rent to avoid all the hassle and expense of voids they would be well within their rights to ask for a rent discount as well?

housebuyer143

Sarah1Mitty2 said:

jimbog said:

Sarah1Mitty2 said:

housebuyer143 said:

Whitlane said:

I don’t think they’ll get much uptake.

I’ve put the rents in that I charge my tenants and compared it to the approximate value of my properties. The amount Skipton are prepared to lend is way short on all of my properties.  The buyer would therefore need to find a large deposit anyway.

But if they have more than 5% they are not eligible anyway, so the property they can get is basically ruling out the majority.

My sister pays £1200 rent, the equivalent property is £400k. The cheapest 3 bed she can get is £300k... Skipton will lend £224k. The numbers will not stack for the majority.

Cheapest 2 bed in my area is about £180k. Rents £700. Still not enough to buy a place 🤷‍♂️

I know of a few examples recently of people moving back to parents, saving the 1200, and waiting for interest rates to do their work

Moving back into parent's spare room to wait for a price crash. What could possibly go wrong?

Paying a landlord 1200 quid a month for a so so flat (or worse being attached to mortgage debt for a so so flat at 1200 quid a month and rising!) with a recession looming, what could possibly go wrong? No wonder people who can are flocking back to their parents.

People keep complaining rent is so high, but a £150k mortgage is about £550 on interest only at the moment. So the average FTB house at £240k is probably close to £750 a month with a 20% deposit. Then landlords pay tax, insurance, some pay agents, maintenance etc. Most landlords unless they fixed a low rate are probably making little at the moment  Rents are high, but so are mortgage repayments but it seems renters don't consider this.