Buyers need 37K deposit to get the best deals...
Discussion
dazco said:
Howitzer said:
This is the main reason i'm still living at home and getting a deposit together.
Being able to buy a house is all well and good, but to do it with security and some stability takes some saving.
Dave!
Do we not all live at home?Being able to buy a house is all well and good, but to do it with security and some stability takes some saving.
Dave!
Week 1: "How could we get into this horrendous credit crisis situation? It's terrible, they were lending money to anyone, at such crazy salary multiples and LTVs"
Week 2: "How terrible, people have to get a decent deposit before they can buy a house. How will people ever get on the property ladder like this!?"
MAKE YOUR CHUFFING MINDS UP!!!! This whole credit crunch rubbish is really starting to get my goat, rants are aplenty!
Yes they lent too much against rubbish properties
Yes they lent too much to poor people with poor financial control
Yes the NR nationalisation was a massive sh*tter
But really the media needs to sort its life out and either report on fact, or form an opinion and stick to it.
Week 2: "How terrible, people have to get a decent deposit before they can buy a house. How will people ever get on the property ladder like this!?"
MAKE YOUR CHUFFING MINDS UP!!!! This whole credit crunch rubbish is really starting to get my goat, rants are aplenty!
Yes they lent too much against rubbish properties
Yes they lent too much to poor people with poor financial control
Yes the NR nationalisation was a massive sh*tter
But really the media needs to sort its life out and either report on fact, or form an opinion and stick to it.
- and breathe*
Didn'know about Bears. 
The average buyer I think should save for a good couple of years, makes sure they have the financial discipline to service a mortgage, and will give them a chance to buy some furniture and bits to help reduce that initial "oh christ I got to buy everything" situation.
The average buyer I think should save for a good couple of years, makes sure they have the financial discipline to service a mortgage, and will give them a chance to buy some furniture and bits to help reduce that initial "oh christ I got to buy everything" situation.
Tonker - I agree with you 100%.
However, as we know, throughout the build up of the credit crisis/housing bubble (particularly post-2000) house prices were climbing at a dramatic rate.
As a result, any delay in hopping on the housing ladder made that first step harder and harder, and anyone who managed to buy a house looked like a genius as their investment paid off rapidly (in paper).
My own experience was that the pressure to buy a house ASAP (in my own mind) driven by jealousy, the "you can't fail" mentality and the potential rewards was HUGE.
Spending time and effort building up a deposit simply wasn't worth it because by the time you saved £20k, or whatever, you actually needed £30k. THERE WAS NO INCENTIVE TO SAVE.
Just get on the ladder at any cost:
However, today we have a mis-match between purchasers mentality and the market.
Purchasers still want to buy a house with no money down etc... They still worry that they need to get on the ladder ASAP.
While the market is taking a HUGE breather and effectively won't lend.
Hopefully soon, the average FTBer will realise that SAVING MAKES SENSE! Today every month saving means that house you want to buy HAS BECOME CHEAPER.
As soon as the purchase mentality re-aligns to "save now because the house will be cheaper later" then everybody will stop whinging that they can't get on the ladder.
However, as we know, throughout the build up of the credit crisis/housing bubble (particularly post-2000) house prices were climbing at a dramatic rate.
As a result, any delay in hopping on the housing ladder made that first step harder and harder, and anyone who managed to buy a house looked like a genius as their investment paid off rapidly (in paper).
My own experience was that the pressure to buy a house ASAP (in my own mind) driven by jealousy, the "you can't fail" mentality and the potential rewards was HUGE.
Spending time and effort building up a deposit simply wasn't worth it because by the time you saved £20k, or whatever, you actually needed £30k. THERE WAS NO INCENTIVE TO SAVE.
Just get on the ladder at any cost:
- 110% Mortgages.
- Bank of Mum & Dad.
- Liar loans (self-cert mortgages).
- etc....
However, today we have a mis-match between purchasers mentality and the market.
Purchasers still want to buy a house with no money down etc... They still worry that they need to get on the ladder ASAP.
While the market is taking a HUGE breather and effectively won't lend.
Hopefully soon, the average FTBer will realise that SAVING MAKES SENSE! Today every month saving means that house you want to buy HAS BECOME CHEAPER.
As soon as the purchase mentality re-aligns to "save now because the house will be cheaper later" then everybody will stop whinging that they can't get on the ladder.
walm said:
My own experience was that the pressure to buy a house ASAP (in my own mind) driven by jealousy, the "you can't fail" mentality and the potential rewards was HUGE.
Spending time and effort building up a deposit simply wasn't worth it because by the time you saved £20k, or whatever, you actually needed £30k. THERE WAS NO INCENTIVE TO SAVE.
Just get on the ladder at any cost:
However, today we have a mis-match between purchasers mentality and the market.
Purchasers still want to buy a house with no money down etc... They still worry that they need to get on the ladder ASAP.
While the market is taking a HUGE breather and effectively won't lend.
Hopefully soon, the average FTBer will realise that SAVING MAKES SENSE! Today every month saving means that house you want to buy HAS BECOME CHEAPER.
As soon as the purchase mentality re-aligns to "save now because the house will be cheaper later" then everybody will stop whinging that they can't get on the ladder.
Spending time and effort building up a deposit simply wasn't worth it because by the time you saved £20k, or whatever, you actually needed £30k. THERE WAS NO INCENTIVE TO SAVE.
Just get on the ladder at any cost:
- 110% Mortgages.
- Bank of Mum & Dad.
- Liar loans (self-cert mortgages).
- etc....
However, today we have a mis-match between purchasers mentality and the market.
Purchasers still want to buy a house with no money down etc... They still worry that they need to get on the ladder ASAP.
While the market is taking a HUGE breather and effectively won't lend.
Hopefully soon, the average FTBer will realise that SAVING MAKES SENSE! Today every month saving means that house you want to buy HAS BECOME CHEAPER.
As soon as the purchase mentality re-aligns to "save now because the house will be cheaper later" then everybody will stop whinging that they can't get on the ladder.
completely 100% agree with all of that!!!!!!Then all we need to do is get shot of New Labia and this country might just start to turn itself back into a reasonably decent society.
Edited by Timmy35 on Wednesday 27th August 09:16
Never mind the chuffing media making up its mind and sticking to an opinion - let's start with the chuffing current tenant at Number 10
1997
" I will not allow house prices to get out of control and put at risk the sustainability of the recovery"
2008
"My aim and my priority is that we can lead the people in Britain through this economic problem and do so by taking the right decisions to get liquidity to the banks, to make sure that the housing market starts moving again,"
Piss ups and breweries come to mind.
1997
" I will not allow house prices to get out of control and put at risk the sustainability of the recovery"
2008
"My aim and my priority is that we can lead the people in Britain through this economic problem and do so by taking the right decisions to get liquidity to the banks, to make sure that the housing market starts moving again,"
Piss ups and breweries come to mind.
I posted a while back about being surprised on the amounts lenders wanted as a deposit. In my case, it was 25% which equalled £25k
When I bought my house some 3 1/2 years ago, I put 5% down as a deposit, but could have gone for 100% if I wanted to - freely available.
Having never bought a house before, and looked through the deals that were on offer, it was a decent rate fixed for 3 years that worked out to about 30% of takehome, and I then went onto another fixed plan
What surprised me wasnt necessarily how it would affect first time buyers, but others further up the chain.
Simply put, I dont have £25k kicking around to put down as a deposit, as the money I would use to save that kind of cash is currently largely going on fuel/utility and other essential payments.
If such things as fuel credits or increases in family tax credits come along this winter, I wouldnt qualify being a working, single non parent
Saying I should have put a 25% deposit down on my first mortgage, to me wouldnt really change things, all I'd have is a lower mortgage and a lender that still wants 25% deposit on a new deal.
When I bought my house some 3 1/2 years ago, I put 5% down as a deposit, but could have gone for 100% if I wanted to - freely available.
Having never bought a house before, and looked through the deals that were on offer, it was a decent rate fixed for 3 years that worked out to about 30% of takehome, and I then went onto another fixed plan
What surprised me wasnt necessarily how it would affect first time buyers, but others further up the chain.
Simply put, I dont have £25k kicking around to put down as a deposit, as the money I would use to save that kind of cash is currently largely going on fuel/utility and other essential payments.
If such things as fuel credits or increases in family tax credits come along this winter, I wouldnt qualify being a working, single non parent
Saying I should have put a 25% deposit down on my first mortgage, to me wouldnt really change things, all I'd have is a lower mortgage and a lender that still wants 25% deposit on a new deal.
I'm also totally dumb-founded (sp ??) by the younger generation these days......and as Tonker pointed out, they drive around in cars which are sometimes worth twice as much as mine ?!?!?!?
It is simple.....these young-uns don't understand the value of money yet....I even had a chat with a local youth (probably 20) who had just brought a brand new Focus ST....which is probably worth 2x my family daily driver....didn't have a clue........My last words were....
"you can't live in the buddy"
Nice guy, don't get me wrong....but he will be moaning like hell in a few years.
Rant Over.
IceBoy
It is simple.....these young-uns don't understand the value of money yet....I even had a chat with a local youth (probably 20) who had just brought a brand new Focus ST....which is probably worth 2x my family daily driver....didn't have a clue........My last words were....
"you can't live in the buddy"
Nice guy, don't get me wrong....but he will be moaning like hell in a few years.
Rant Over.
IceBoy
You'll note they mention the best mortgage deals. If people want to buy with a 5 or 10% depo they can, but in doing so they accept that they will be paying a higher rate for borrowing the cash.
That's nothing news and quite frankly not newsworthy.
Whats not currently possible is purchasing a property with a 100% loan, and there were plenty of people in the mortgage industry who didn't think that was ever a great idea, but what were they meant to do, turn business away?
That's nothing news and quite frankly not newsworthy.
Whats not currently possible is purchasing a property with a 100% loan, and there were plenty of people in the mortgage industry who didn't think that was ever a great idea, but what were they meant to do, turn business away?
chris_w666 said:
While I agree that some people have stretched needlessly to buy property in desperation. The drive to get everyone on the property ladder seems to be a media driven one too, did estate agents pay TV companies.
No, the media like a trend..... on the way up..."Property Ladder", on the way down "Don't move, improve"Tonks, liking your thinking on the negative equity unsecured stuff....
scotal said:
what were they meant to do, turn business away?
The same applies to the banks themselves. If the Government chose to weaken the BOE role in regluating the banks by splitting power between the FSA and BOE, if the Treasury followed the US model of setting an artificially low base rate post 2002, and if the Government failed to bother to even attempt to regulate the speculative boom it was creating, then why should banks and estate agents get the blame? Or for that matter consumers. It's like offering a room full of alcoholics ( or PHers for that matter ) a free bar and then telling them off for getting drunk. ALL of this leads straight back to Government policy eminanting from No 11 over the past decade.
?
ks mate - you can't race your house'?
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