Monday, Apr 02, 2007
In just five years FTBs need mortgages 60% greater
Firstrung: First time buyers need mortgages sixty percent greater than in 2002
First-time buyers hoping to get a foot on the housing ladder in East Anglia are having to borrow almost two and a half times as much cash for their mortgage compared to 10 years ago...The scale of the spiral in house prices also reveals that the average age for becoming a home owner increased by almost 10 years in the last decade, with buyers today typically aged in their mid-30s.
Posted by converted lurker @ 12:10 PM (131 views) Add Comment
9 Comments
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1. geed said...
"The scale of the spiral in house prices also reveals that the average age for becoming a home owner increased by almost 10 years in the last decade, with buyers today typically aged in their mid-30s."
10 years lost, 10 years and we havent moved on. Depressing.
2. converted lurker said...
The ladder being kicked away has happened so quickly, this demographic shift should be of great concern for all of us, having created a culture of 'you're nowt without a place to call your own' those who should aspire to that questionable value are priced out. Average age of an FTB upped 10 years in 10 years? Actually not entirely sure on that, will have to re-check it as fact, if so it's quite a headline
3. george monsoon said...
Converted lurker, it may not be an exact science, but I have been unable to buy for the last 6 years, constantly fighting to top up my deposit money and falling further and further behind...
By the way, I am 40, no credit cards, 1 very small loan <£2000 almost finished.
Unless this thing goes PoP soon, I will be too old to consider a mortgage.
4. dugmug said...
I don't understand the quote, "The fact that people are borrowing three times as much to buy a house sounds terrifying, but in reality money is worth more now than it was 10 years ago and interest rates are lower."
Surely money is worth LESS now, due to inflation (which supports his argument that it isn't as bad as it looks), but it isn't worth anything like 3 TIMES LESS (which then knocks his argument back down again and shows things really are very bad indeed)?
5. geed said...
GM - I wholeheartedly agree with you. I remember back 2001/2 my mate buying a 3 bed terrace in Billericay in Essex for 99K. I was gob smacked, i kept repeating to myself thats 10% of a million quid! This was at a time when the start of the bubble hadnt quite reached other parts of the UK. You could still buy a similar property in parts of North Wales for 35K (where I am originally from) so I was comparing it to that. I remember saying to myself, he is getting ripped off and that the house was never worth a 100K. I'd say 220K for his property now and around a 100K for the property in Wales.
I have been preparing myself over the last few months for life long renting. It is a horrible possibility (I dont mind renting but not forever) for me and I must be realistic as the market has defide logic for many years now, all the experts in the world couldn't convince me what the future brings, they know nothing in this day and age.
Even the staunch housing market Bulls have recently been quoted saying they are surprised by the massive continuation of of HPI, this tells me even they are privately a little "flabbergasted".
6. george monsoon said...
geed, I know how you feel. This correction should be swift and severe if it comes about, otherwise all my palls will be home owning millionaires and I will be .. well poor.!
7. royston said...
GM,
I think you have got a good 10 years to go before you are too old to get a mortgage. It is clear that Tony B. Liar & Crash Gordon's stewardship of the economy is going to require us all to work until we are at least 75!
That's it all the jobs haven't moved to China by then. Have you noticed how many Chinese students are in British universities these days? We are supplying British legal and accounting qualifications to Chinese people who speak perfect English. How long before our banking, accounting and legal jobs follow our manufacturing jobs east?
8. nearly30 said...
geed - never fear - just be very smug when in a couple of years time when renting is about 1/2 the cost of owning a house.
Of course they will moan - as will the media - but hey - the shoe's on the other foot then!!!
Then after a couple of years - saving of course - have a go and snap up a bargain - how about a nice recently refurbed house in Essex - was £200K now yours for the princely sum of £120K - so knock off 10% (£12K that you have saved) and that's 108K - or a mortgage 3.6 x your £30K single income - very reasonable I'd say.
9. geed said...
Nearly 30, I like your vision of the future! Sit, wait and save.