If you wait for the price crash...

HouseBuyer_2

who will you find that will lend you the mortgage?

We started looking and when I called London & county this morning they said lenders criteria were getting very tough. And even if house prices fall, no one can say if mortgage rates will fall.

We earn a decent wage (joint £75k pa) and can just about at the moment afford to borrow enough for what we need, £250,000.

For those waiting for the prices to bottom out, do you have something agreed you can transfer on or will you be a cash buyer?

poppysarah

But isn't that part of the point? That once house prices go down people will have saved a bigger percentage of the property and be more able to afford mortgage repayments?

If you have a joint income of 75k then you should be saving 50k a year - which means you should be able to buy outright.

mitchaa

poppysarah wrote: »

If you have a joint income of 75k then you should be saving 50k a year - which means you should be able to buy outright.

Ive no idea how you've managed to work that out. They will only see around £50k pa after taxation.

That means they would have to save 100% of what they earn:rotfl:

Im sure dependant on current outgoings though that they should be able to save £20-25k pa

3under3

poppysarah wrote: »

If you have a joint income of 75k then you should be saving 50k a year - which means you should be able to buy outright.

Saving 50k isn't really feasible unless the OP doesn't have to pay taxes like the rest of us!

I agree though you should be saving for a decent deposit as this will protect you to some extent against negative equity and should secure you a better mortgage deal. It's my view that one of the main drivers in stagnating the housing market is the withdrawal of 100% mortgages to FTB's.

dannyboycey

HouseBuyer wrote: »

who will you find that will lend you the mortgage?

Pretty much any lender if you are debt free and have a decent deposit. Just the way it should be!

HouseBuyer_2

3under3 wrote: »

Saving 50k isn't really feasible unless the OP doesn't have to pay taxes like the rest of us!

I agree though you should be saving for a decent deposit as this will protect you to some extent against negative equity and should secure you a better mortgage deal. It's my view that one of the main drivers in stagnating the housing market is the withdrawal of 100% mortgages to FTB's.

We have a 10-15% deposit depending on the price of the house, we are first time buyers and have just been outpriced of the market (until very recently). We have no debts, some other savings (aside from deposit).

It's just a bit odd that people are expectant of the price crash but people haven't got any reassurances about the cost of mortgages to sensible levels. I'm not trying to stir up any trouble, just trying to get my head round why people are waiting around

3under3

HouseBuyer wrote: »

It's just a bit odd that people are expectant of the price crash but people haven't got any reassurances about the cost of mortgages to sensible levels. I'm not trying to stir up any trouble, just trying to get my head round why people are waiting around

What do you mean by sensible levels??

mircea

poppysarah wrote: »

If you have a joint income of 75k then you should be saving 50k a year - which means you should be able to buy outright.

We have a joint income of 60k. We buy our groceries from Aldi. We constantly switch energy and communication suppliers to get the cheapest deal possible. When we go on holiday we swap houses so we pay nothing for accommodation. We have nothing going out of our account apart from unavoidables: council tax, insurances etc. We grow vegetables in the garden. We pay for childcare with tax vouchers. We sold one car and I cycle to work. etc etc etc. At the end of the year we will be lucky if we have 5k in our savings.

Mind to share how you made your calculations?

MissMoneypenny

The interest rates were about 12% when I bought my first house and we had to have a deposit to buy a house. We also got interviewed by the manager of the bank to see if we were suitable to have a mortgage.

These last few years of easy credit and liar loans has not helped many people. The sooner the house prices return to a sensible ratio of average earnings to house prices, and lending only to those that can afford the repayments, the better. A whole generation seem to have missed out on a part of life, that us in the past had as a right.

MissMoneypenny

mircea wrote: »

We pay for childcare with tax vouchers.

We didn't have welfare paying these sort of benefits when my children were little. It just goes to show how bad things have become if people need these payments to live on. The cost of housing has just been too high over the last few years.

going2die_rich

mircea wrote: »

We have a joint income of 60k. We buy our groceries from Aldi. We constantly switch energy and communication suppliers to get the cheapest deal possible. When we go on holiday we swap houses so we pay nothing for accommodation. We have nothing going out of our account apart from unavoidables: council tax, insurances etc. We grow vegetables in the garden. We pay for childcare with tax vouchers. We sold one car and I cycle to work. etc etc etc. At the end of the year we will be lucky if we have 5k in our savings.

Mind to share how you made your calculations?

If even after having a household income of £60k you only manager to save £5k you must either be living in a very expensive area or maybe have other expensese you haven't mentioned, perhaps private school or something else like that to be draining your income? As if you only save £5k with a £60k income, it would mean anyone on the average income would be in the minus thousands each year.

Do you have a mortgage already? As this would explain why your savings each year are lower than expected, as obviously that would take out a huge chunk of your income. Even renting does that I suppose, but again it depends on the area you are living in, as North of england has different costs to teh south etc.