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NotMyHouse

Nice Anecdotal

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Buyers "Flooding" Back

First time buyers flooding the market?, yeah right, speaking as a first time buyer who earns significantly above national average wage, who is debt free, who has a prefect credit history, who was borrowing just over 3X salary, and who has a healthy deposit,....I have just had my mortgage company demand an extra 33% deposit two weeks into a house purchase forcing me to pull out of the purchase at a cost of £1200.

You think FTB's are getting treated fairly by the banks? Think they are 'flooding' to the market? Dream on, the banks are restricting lending further not relaxing it as most want to believe.

You want to know why there appears to be increased activity? It is simply because the BoE and the government are deliberately holding the base rate low to keep people in their houses during the recession. If you think there will be a housing boom in the middle of a severe recession you are incredibly foolish

Doesn't sound like one of us. Sibbers, care to comment?

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That sounds exactly like a guy at work, but instead of pulling out when the bank demanded an extra 20K in deposit over his original 20-30K (for a 140-150K house) he went to the bank of mum and dad who bailed him out. Not entirely sure about the sums but they were around there.

"I'm so pleased that it went through, because you know the house prices are going up".

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That sounds exactly like a guy at work, but instead of pulling out when the bank demanded an extra 20K in deposit over his original 20-30K (for a 140-150K house) he went to the bank of mum and dad who bailed him out. Not entirely sure about the sums but they were around there.

"I'm so pleased that it went through, because you know the house prices are going up".

bankers...take advantage of every bit of good news....to the customers disadvantage. always have, always will.

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It's just evil what the banks are doing at the moment... They want a 33% deposit from FTBs because like the people on this site they've run the numbers on wage multiples and they are pretty sure house prices are going to fall another 33%. The ultimate loser in all this is the parents who have to remortgage their house to hand over a huge deposit. They are going to end up working for years more instead of retiring so they can pay the deposit back to the bank (with interest). And when the house price falls, that money is gone gone gone and the winners are the bank and whoever was smart/lucky enough to sell now, before the inevitable big crash.

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It's just evil what the banks are doing at the moment... They want a 33% deposit from FTBs because like the people on this site they've run the numbers on wage multiples and they are pretty sure house prices are going to fall another 33%. The ultimate loser in all this is the parents who have to remortgage their house to hand over a huge deposit. They are going to end up working for years more instead of retiring so they can pay the deposit back to the bank (with interest). And when the house price falls, that money is gone gone gone and the winners are the bank and whoever was smart/lucky enough to sell now, before the inevitable big crash.

I dont see how it is evil.

Banks have a duty to their shareholders. And havent we seen the horrible consequences of banks lending money to people without enough equity during a boom?

It makes sense that banks ask for big deposits when base rates are so low. Those rates will have to go up, and as asset values are inversely related to the rate of interest, those assets will fall in value as interest rates rise. It is a mathematical certainty.

And the plus from all of this is that if banks rein in their lending, house prices will have to fall to meet the actual demand. If banks dont lend as much, prices become cheaper. Great news for those with little debt and savings.

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It's just evil what the banks are doing at the moment... They want a 33% deposit from FTBs because like the people on this site they've run the numbers on wage multiples and they are pretty sure house prices are going to fall another 33%.

Don't get too indignant. I offer two choices:

1. The banks survive by ripping off foolish but asset-rich buyers (or rather asset-rich parents of buyers!)

2. The banks survive by being handed money forcibly removed from you and me by taxation.

Since I can't realistically see other options being on the table (banks failing, anyone?), I know which I'd prefer.

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I dont see how it is evil.

Banks have a duty to their shareholders. And havent we seen the horrible consequences of banks lending money to people without enough equity during a boom?

It makes sense that banks ask for big deposits when base rates are so low. Those rates will have to go up, and as asset values are inversely related to the rate of interest, those assets will fall in value as interest rates rise. It is a mathematical certainty.

And the plus from all of this is that if banks rein in their lending, house prices will have to fall to meet the actual demand. If banks dont lend as much, prices become cheaper. Great news for those with little debt and savings.

and yet it seems somehow morally wrong for the VIs,including banks and politicians to encourage people back into the market, when if truth be known, the people providing the finance truly beleive they cant risk their own money in a bargain.

bank managers used to be one of the three wise men.....for me, they lost that honour in the last recession...for many younger people, the truth about banks is soon to be revealed.

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It's just evil what the banks are doing at the moment... They want a 33% deposit from FTBs because like the people on this site they've run the numbers on wage multiples and they are pretty sure house prices are going to fall another 33%. The ultimate loser in all this is the parents who have to remortgage their house to hand over a huge deposit. They are going to end up working for years more instead of retiring so they can pay the deposit back to the bank (with interest). And when the house price falls, that money is gone gone gone and the winners are the bank and whoever was smart/lucky enough to sell now, before the inevitable big crash.

It seems a pretty neat way of reversing the trend of money flowing from the younger generation to the older via overpriced houses. Here we have the older ones subsidising house purchases so money if flowing down - an early inheritance gift!

The real issue is that we've become so used to borrowing 4x salary with %% deposit that a return to the "norms" of the 1970's/1980's i.e. 10-20% deposit and 3x salary seems like a crime against humanity.

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It's just evil what the banks are doing at the moment... They want a 33% deposit from FTBs because like the people on this site they've run the numbers on wage multiples and they are pretty sure house prices are going to fall another 33%. The ultimate loser in all this is the parents who have to remortgage their house to hand over a huge deposit. They are going to end up working for years more instead of retiring so they can pay the deposit back to the bank (with interest). And when the house price falls, that money is gone gone gone and the winners are the bank and whoever was smart/lucky enough to sell now, before the inevitable big crash.

The banks are the winners, but the majority of parents that I know who have funded their kids deposits have done so from their savings, not be borrowing more on their own mortgage.

When parents are extending their own mortgage to lend their kids a deposit, surely they must realise that something is very wrong!

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That sounds exactly like a guy at work, but instead of pulling out when the bank demanded an extra 20K in deposit over his original 20-30K (for a 140-150K house) he went to the bank of mum and dad who bailed him out. Not entirely sure about the sums but they were around there.

"I'm so pleased that it went through, because you know the house prices are going up".

Yes, it's interesting that buuyers don't seem to ask the reason for the increased deposit. The logical reason is that they expect further falls in values but this doesn't seem to come accross; it's more the bankers being unreasonable rather than them being perfectly reasonable in wanting to safeguard their asset base.

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The banks are the winners, but the majority of parents that I know who have funded their kids deposits have done so from their savings, not be borrowing more on their own mortgage.

When parents are extending their own mortgage to lend their kids a deposit, surely they must realise that something is very wrong!

indeed, it used to be they would be guarantors, now its suppliers of actual cash.

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