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Predicted mortgage market in short to medium term?
Alleycat
Posts: 4,601 Forumite
Hi,
I know this question may have been asked in various guises already, but am struggling to find what I am looking for. Also, apologies if this seems a daft and rather naive question!
I think I have a vaguely reasonable understanding of the financial crisis the banks are under with regards the provision of mortgages at this point in time. However, I am a complete novice when it comes to this field and would like to know if anyone has any thoughts or idea of how things will progress in the short to medium term.
Myself, my partner and daughter are currently living with my parents in an overcrowded household and have been looking at shared ownership since late last year. The plan was to save the fees and stamp duty, my partner start work and daughter start nursery then we would begin looking early this year. This has however changed with the threats of a market crash and mortgage crisis. We do need to move within the next three to four months, but just don't know what to do for the best right now.
We could afford to buy on the open market using a shared ownership scheme, even with current house prices but don't know if we should. We have relooked at private rented for the next 6 to 12 months and then to buy but the rental market is still very high and I can't see if coming down much at all. We need to stay in our current area due to childcare and daughter going to primary school in less than a year and a half (we need to stay within the catchment area of the school attached to her nursery). We would be using the money we have saved for fees and stamp (even though we no longer need to worry about stamp duty if using shared ownership schemes) on a deposit with no guarantee of its return and agency fees and would struggle to resave this whilst paying high rent.
So.....what do people think will happen to the mortgage market over the next 12 months?!?
Thanks, Alley
I know this question may have been asked in various guises already, but am struggling to find what I am looking for. Also, apologies if this seems a daft and rather naive question!
I think I have a vaguely reasonable understanding of the financial crisis the banks are under with regards the provision of mortgages at this point in time. However, I am a complete novice when it comes to this field and would like to know if anyone has any thoughts or idea of how things will progress in the short to medium term.
Myself, my partner and daughter are currently living with my parents in an overcrowded household and have been looking at shared ownership since late last year. The plan was to save the fees and stamp duty, my partner start work and daughter start nursery then we would begin looking early this year. This has however changed with the threats of a market crash and mortgage crisis. We do need to move within the next three to four months, but just don't know what to do for the best right now.
We could afford to buy on the open market using a shared ownership scheme, even with current house prices but don't know if we should. We have relooked at private rented for the next 6 to 12 months and then to buy but the rental market is still very high and I can't see if coming down much at all. We need to stay in our current area due to childcare and daughter going to primary school in less than a year and a half (we need to stay within the catchment area of the school attached to her nursery). We would be using the money we have saved for fees and stamp (even though we no longer need to worry about stamp duty if using shared ownership schemes) on a deposit with no guarantee of its return and agency fees and would struggle to resave this whilst paying high rent.
So.....what do people think will happen to the mortgage market over the next 12 months?!?
Thanks, Alley
"I've fallen down a hole" - said in best Monty Python voice-over.
0
Comments
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Rates will go up a little more, maybe a lot more its hard to say. You may find lenders pulling out of shared ownership or at least ristricting LTV's.
Also if you are on open market then you will need 5% - 10% deposit minimum.
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