Friday, Jan 15, 2010
WOW! FTBs driving the housing market are putting down at least £40k deposits!
Times: Questions over recovery as mortgage demand slips
They're not really likely to be FTBs then are they! IMO the housing market has been kept alive by capitulating STRs and people with wealthy parents.
'The housing market recovery suffered a slight setback in November as the number of mortgages extended to homebuyers fell by 4 per cent, according to figures published yesterday.
Compared with the previous month there was a 2 per cent decline in lending to first-time buyers to 19,300 and a 5 per cent decline for other home movers to 33,600, amid what the Council of Mortgage Lenders (CML) described as a seasonal dip in demand. However, the CML said that, despite the monthly decline, numbers were up by an “emphatic” 66 per cent when compared with November 2008.'
Posted by tyrellcorporation @ 02:50 PM (1572 views) Add Comment
12 Comments
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1. drewster said...
"First-time buyers were putting down an average deposit of 17pc 12 months ago, compared with 25pc now, as lenders have increasingly demanded higher deposits."
I thought the credit crunch, which started with Northern Rock in autumn 2007, was supposed to be easing? Clearly not!
2. will said...
I wonder what the average age of the first timer now is?
3. dill said...
will @2.
From an Independant article (11/12/09):-
.....the average age of first-time buyers getting parental assistance has stayed the same but the average age of a first-time buyer without parental help has risen from 33 to 37.
4. happy mondays said...
@ 2
59 is the average age, then you have to start thinking about your pension fund...
5. drewster said...
@happy mondays,
Don't worry, according to another recent article posted here we can expect to live to the age of 120. That's plenty of time to save for a pension.
Maybe it's just a new year resolution thing, but I'm focused on living healthily so that I'll still be able to work by that age!
6. hpwatcher said...
59 is the average age, then you have to start thinking about your pension fund...
The problem is that the house has become the pension fund......
7. will said...
hpw @ 6
If our houses have become our pension fund and the average house is about £160K - what sort of house is joe average supposed to live in after he has withdrawn his pension fund?
£500K invested in an index linked 'joint life' annuity will give around £22K each year- before tax.
8. Open Minded said...
Remember that a small contribution towards costs would count as parental assistance just as much as a whacking great deposit would. I think that articles about assistance are meaningless without knowing the extent of the help given.
Sadly, most posters on this site only challenge missing detail fom article that support the view that the housing market is recovering.
9. reader said...
So what exactly is a first time buyer? When someone sells up their house for a profit, pays off the mortgage, has £40k left over and rents for a while, and then buys again with the £40k as deposit - does this count as FTB? If not, how does whoever is compiling the stats know that it doesn't?
10. paul said...
But the recovery is about getting credit to businesses, not demand for excessively high house prices.
Oh this is the Times' becca. She's mortgaged to the hilt according to her own articles from early 2007 and praying for rising prices. Silly bint.
11. markj69 str05 said...
@Paul...'But the recovery is about getting credit to businesses, not demand for excessively high house prices.'
Wish I could agre with that, but I believe 'Recovery' at this present time is about stabilizing the banks (£200B), supporting business (Hoping part of the £200B filters down the system), and supporting the general public - Who have a great deal tied up in property debt (By keeping IR low).
Meanwhile, sinking this country to a second class global economy.
12. markj69 str05 said...
@8. I fit your profile pretty well, having sold in 05. Having looked into a few mortgages recently, it seems to depend on who you're talking to. Some have no other definition for someone re-buying after selling ages ago. Others do have a definitionlike 'new buyer'. Not sure how it works out in the stats. I suppose it just gives statistitions another variable to tweak in the whole mix.