Halifax turns clock back to 60s

LillyJ

PasturesNew wrote: »

Why shouldn't people on lower pay consider a house? If the multiple's OK then why not?

For somebody with this income renting can cost the same. And you have to keep moving. You can't move all your life. It gets harder the older you get.

I randomly picked Norwich and went to Rightmove. I have no knowledge of the area whatsoever.

2-bed flat. £58k: http://www.rightmove.co.uk/viewdetails-10200012.rsp?pa_n=1&tr_t=buy

Borrowing £52k, a monthly repayment mortgage at 6% over 25 years is just £338/month (or £370/month over 20 years)

Or you can rent the cheapest 1-bed flat for £375/month
http://www.rightmove.co.uk/viewdetails-21008879.rsp?pa_n=4&tr_t=rent

I am just saying that in some areas it is possible and not ridiculous to consider.

Agreed but I don't think it would be particularly common for a single wage of 15K or below to buy a house, especially at the moment. I suppose it may become more common if we see large drops in prices. People on low income also tend to have less disposable income once you take in to account things that cannot be altered eg bills, council tax, food etc and therefore would find it harder to get a deposit together, although the deposit on a 52k flat would not be difficult to get I suppose.

noh

The two bed flat in Norwich referred to is 58K for a 50% shared ownership so its market value is 116K. Out of reach for someone on 15k

Nigel

MrDT

noh wrote: »

The two bed flat in Norwich referred to is 58K for a 50% shared ownership so its market value is 116K. Out of reach for someone on 15k

Nigel

it was just a random example, here's another:
http://www.rightmove.co.uk/viewdetails-19067516.rsp?pa_n=5&tr_t=buy
not totally random, it's ~30 miles from where i work

52.5k asking price, will likely sell for less, has been on the market a while and seen some reductions already. 2 bedroom terraced house, not a flat. It ain't no palace, granted, but it'd do nicely as an affordable starter home for a single person earning <1k per month. Well, it would provided this kind of policy doesn't spread

LillyJ

MrDT wrote: »

it was just a random example, here's another:
http://www.rightmove.co.uk/viewdetails-19067516.rsp?pa_n=5&tr_t=buy
not totally random, it's ~30 miles from where i work

52.5k asking price, will likely sell for less, has been on the market a while and seen some reductions already. 2 bedroom terraced house, not a flat. It ain't no palace, granted, but it'd do nicely as an affordable starter home for a single person earning <1k per month. Well, it would provided this kind of policy doesn't spread

Like the person above stated you have to open a current account with them, but the £1000 is just to get the higher interest rate on the current account rather than allowing you to have a mortgage.

noh

Yes as LillyJ says, this policy won't prevent a person on 15K getting a mortgage. The Halifax is asking anyone with a deposit less than 10% to open a HICA.This doesn't require £1000 a month funding as erroneously stated in the article. You only need to deposit that amount to acheive the higher interst rate.

Nigel

neverdespairgirl

boinging wrote: »

Would be a pain in the rear to change bank accounts though (I believe more people change husbands / wives than bank accounts).

This is quite a significant move and one which again will add to the downward pricing trends.

My parents have only been married once, to each other. In the mid-1980s, though, they did move bank - my father got so annoyed with his existing bank that he, as he put it, "moved his overdraft".

PasturesNew

noh wrote: »

The two bed flat in Norwich referred to is 58K for a 50% shared ownership so its market value is 116K. Out of reach for someone on 15k

Nigel

Damn I wish they'd make that a lot clearer. Should have a tiny logo on each SO advert showing the %age, so you don't have to go hunting for it.

anyway, Norwich aside. I could find loads at that price and cheaper around the country. I just used the first town I thought of and found a cheap place.

OK, under £65k in Cardiff http://www.rightmove.co.uk/viewdetails-7332546.rsp?pa_n=2&tr_t=buy

3 bed house £65k: http://www.rightmove.co.uk/viewdetails-18664952.rsp?pa_n=5&tr_t=buy

m00m00

you can get a 3 bed house for under 65k in nottingham

http://www.rightmove.co.uk/viewdetails-17757551.rsp?pa_n=1&tr_t=buy


not that many people from here would want to live in it ....

and for those in denial about the way the market is going, even at the bottom ...


10th May 2008

• Price changed: from '£69,950' to '£62,950'

13th Feb 2008

• Price changed: from '£76,950' to '£69,950'

23rd Jan 2008

• Initial entry found.

PasturesNew

m00m00 wrote: »

you can get a 3 bed house for under 65k in nottingham

http://www.rightmove.co.uk/viewdetails-17757551.rsp?pa_n=1&tr_t=buy


not that many people from here would want to live in it ....

and for those in denial about the way the market is going, even at the bottom ...


10th May 2008

• Price changed: from '£69,950' to '£62,950'

13th Feb 2008

• Price changed: from '£76,950' to '£69,950'

23rd Jan 2008

• Initial entry found.

The thing is with any property, if you're "from round there" and all your family/mates are in the area, then there will be somebody for any property. One man's "no go estate" is another person's "lucky find" if it's 3 doors down from their mum, across the road from their best fried for 30 years and they work at the chippy.

m00m00

oh it's VERY much for 'local people'