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

spoovy

Seems like most people are getting this wrong to me. Just because a renter pays say £800 pcm at the moment on rent, doesn't mean their budget for a mortgage would only be £800 pcm.  That person is quite likely to be saving some amount per month, likely towards a deposit.  They may quite easily find £1200 or more if it means paying their own mortgage off rather then someone else's.  I was certainly in that situation for a long time myself.

spoovy

Sarah1Mitty2 said:

jimbog said:

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 

True. Renting to wait for a price crash would be an even greater folly

Yes, at 1200 much better just to crash at the parents for a while, most parts of the UK will be half that or less for a basic flat though.

If by "a while" you mean about 10 years, and if in those 10 years prices halve, despite the fact that the opposite has always happened in the past, then yeah, great idea.
For people who live in the real world, attempting to time the market in this way is the ultimate fool's game. Its a gigantic gamble, with horrible odds against you, and you can only roll the dice once per lifetime.

Sarah1Mitty2

spoovy said:

Sarah1Mitty2 said:

jimbog said:

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 

True. Renting to wait for a price crash would be an even greater folly

Yes, at 1200 much better just to crash at the parents for a while, most parts of the UK will be half that or less for a basic flat though.

If by "a while" you mean about 10 years, and if in those 10 years prices halve, despite the fact that the opposite has always happened in the past, then yeah, great idea.
For people who live in the real world, attempting to time the market in this way is the ultimate fool's game. Its a gigantic gamble, with horrible odds against you, and you can only roll the dice once per lifetime.

In the past it happened with "normal" interest rates, this time it is from zero to closing in on 5% in a historically record time, totally different to any scenario we have seen in the past. My advice still stands, much better to bank as much money as possible at this time even if it means a spell back home for some people.

Sarah1Mitty2

spoovy said:

Sarah1Mitty2 said:

jimbog said:

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 

True. Renting to wait for a price crash would be an even greater folly

Yes, at 1200 much better just to crash at the parents for a while, most parts of the UK will be half that or less for a basic flat though.

If by "a while" you mean about 10 years, and if in those 10 years prices halve, despite the fact that the opposite has always happened in the past, then yeah, great idea.
For people who live in the real world, attempting to time the market in this way is the ultimate fool's game. Its a gigantic gamble, with horrible odds against you, and you can only roll the dice once per lifetime.

People were saying similar on forums two years ago, people who took that advice will now be coming off the fixed rates they took out at peak prices, that was very poor timing in my opinion.

Gavin83

Sarah1Mitty2 said:

BikingBud said:

See Skipton BS Mortgage

Reality on the ground

Yes, looks like prices need to fall quite a bit now to attract any buyers.

Except they're not struggling to find buyers. If you read the article it states properties are increasing in price and still selling quickly. The only people that seem to be struggling based on that article are young FTBs, especially single people.

Yellowsub2000 said:

It’s not going to be a housing apocalypse, it’s just going to be a correction.

Interest rates are going back to normal so property will go back to normal in relation to everything else.

property went up artificially due to artificially low interest rates but things are correcting now back to normal  

Out of interest how much do you think house prices will drop as part of this correction?

Yellowsub2000

Sarah1Mitty2 said:

spoovy said:

Sarah1Mitty2 said:

jimbog said:

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 

True. Renting to wait for a price crash would be an even greater folly

Yes, at 1200 much better just to crash at the parents for a while, most parts of the UK will be half that or less for a basic flat though.

If by "a while" you mean about 10 years, and if in those 10 years prices halve, despite the fact that the opposite has always happened in the past, then yeah, great idea.
For people who live in the real world, attempting to time the market in this way is the ultimate fool's game. Its a gigantic gamble, with horrible odds against you, and you can only roll the dice once per lifetime.

In the past it happened with "normal" interest rates, this time it is from zero to closing in on 5% in a historically record time, totally different to any scenario we have seen in the past. My advice still stands, much better to bank as much money as possible at this time even if it means a spell back home for some people.

Very good advice 

even if it means a spell renting for while hence all the sell to renters

Yellowsub2000

Gavin83 said:

Sarah1Mitty2 said:

BikingBud said:

See Skipton BS Mortgage

Reality on the ground

Yes, looks like prices need to fall quite a bit now to attract any buyers.

Except they're not struggling to find buyers. If you read the article it states properties are increasing in price and still selling quickly. The only people that seem to be struggling based on that article are young FTBs, especially single people.

Yellowsub2000 said:

It’s not going to be a housing apocalypse, it’s just going to be a correction.

Interest rates are going back to normal so property will go back to normal in relation to everything else.

property went up artificially due to artificially low interest rates but things are correcting now back to normal  

Out of interest how much do you think house prices will drop as part of this correction?

experts like moving home with Charlie say between 35% to 50% by the time the correction is over

MattMattMattUK

Yellowsub2000 said:

Gavin83 said:

Sarah1Mitty2 said:

BikingBud said:

See Skipton BS Mortgage

Reality on the ground

Yes, looks like prices need to fall quite a bit now to attract any buyers.

Except they're not struggling to find buyers. If you read the article it states properties are increasing in price and still selling quickly. The only people that seem to be struggling based on that article are young FTBs, especially single people.

Yellowsub2000 said:

It’s not going to be a housing apocalypse, it’s just going to be a correction.

Interest rates are going back to normal so property will go back to normal in relation to everything else.

property went up artificially due to artificially low interest rates but things are correcting now back to normal  

Out of interest how much do you think house prices will drop as part of this correction?

experts like moving home with Charlie say between 35% to 50% by the time the correction is over

Having a few thousand followers on Twitter does not make someone an expert. 

RelievedSheff

If you all stop talking to Crashy he will just disappear. 

Sarah1Mitty2

MattMattMattUK said:

Yellowsub2000 said:

Gavin83 said:

Sarah1Mitty2 said:

BikingBud said:

See Skipton BS Mortgage

Reality on the ground

Yes, looks like prices need to fall quite a bit now to attract any buyers.

Except they're not struggling to find buyers. If you read the article it states properties are increasing in price and still selling quickly. The only people that seem to be struggling based on that article are young FTBs, especially single people.

Yellowsub2000 said:

It’s not going to be a housing apocalypse, it’s just going to be a correction.

Interest rates are going back to normal so property will go back to normal in relation to everything else.

property went up artificially due to artificially low interest rates but things are correcting now back to normal  

Out of interest how much do you think house prices will drop as part of this correction?

experts like moving home with Charlie say between 35% to 50% by the time the correction is over

Having a few thousand followers on Twitter does not make someone an expert. 

Who are the real experts in your opinion?