vman7 Posted May 7, 2012 Share Posted May 7, 2012 did anyone read the front page of the daily express the other day? house prices up £65 a day. Is anyone else getting sick of this property propaganda bullsh1t? I viewed a few house the other day ina development and left my number for an "independent" advisor to call me about mortgage rates. he called me giving the usual rubbish about now is the time, rates are low bla bla blah. Basically he worked out with both our wages we could get a £200,000+ mortgage which baffles me as we are first time buyers with minimal depost and average wages. turns out the reason i coulf afford the monthly payements was that he was putting it over 40 years!! Who the hell takes a 40 year mortgage? I am just sick of it all and im sick and tired of people/EA's clinging on to the past. the sooner they realise that house prices need to be cut substantially (not the 5 grand decreases i see using property bee) the better. RANT OVER (i dont think the rubbish weather over our bank holiday has helped my mood) Quote Link to comment Share on other sites More sharing options...
neon tetra Posted May 7, 2012 Share Posted May 7, 2012 did anyone read the front page of the daily express the other day? house prices up £65 a day. Is anyone else getting sick of this property propaganda bullsh1t? I viewed a few house the other day ina development and left my number for an "independent" advisor to call me about mortgage rates. he called me giving the usual rubbish about now is the time, rates are low bla bla blah. Basically he worked out with both our wages we could get a £200,000+ mortgage which baffles me as we are first time buyers with minimal depost and average wages. turns out the reason i coulf afford the monthly payements was that he was putting it over 40 years!! Who the hell takes a 40 year mortgage? I am just sick of it all and im sick and tired of people/EA's clinging on to the past. the sooner they realise that house prices need to be cut substantially (not the 5 grand decreases i see using property bee) the better. RANT OVER (i dont think the rubbish weather over our bank holiday has helped my mood) Well, on a related theme, have you noticed quite how many front page headlines are about the weather? It seems to be at least one a week. Is there any place we can look up old front page images to confirm this...? Quote Link to comment Share on other sites More sharing options...
Shotoflight Posted May 7, 2012 Share Posted May 7, 2012 More homeowner misery as its revealed house prices plunged by £130 EVERY day last month http://www.dailymail.co.uk/news/article-2139895/More-home-owner-misery-revealed-house-prices-plunged-130-EVERY-day-month.html#ixzz1tzsdZX5x Watch out for UUJ quarterly report for NI in next week or so and RICS around 12th. As George Bush said - this sucker's goin down. BTW, at most, UK tabloids are good for a chuckle and generally don't even know NI exists - esp Mail & Express. Quote Link to comment Share on other sites More sharing options...
kerzo Posted May 8, 2012 Share Posted May 8, 2012 Signs of hope apparantly - http://www.bbc.co.uk/news/uk-northern-ireland-17982513 What hope are they talking about? Hope that people will realise that houses will sell if they aren't completely overpriced?! Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted May 8, 2012 Share Posted May 8, 2012 EAs and the head of a publicly owned massively loss making bank say "it's not as bad as you think". Turkeys don't vote for Christmas. Quote Link to comment Share on other sites More sharing options...
pajd Posted May 8, 2012 Share Posted May 8, 2012 Its the Express. Not a week goes by that this rag doesn't spout this kind of nonsense. You only have to take a look at who owns the paper to see why. I wouldn't get worked up over it Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted May 8, 2012 Share Posted May 8, 2012 Oh I was talking about the BBC article. Quote Link to comment Share on other sites More sharing options...
tinbin Posted May 8, 2012 Share Posted May 8, 2012 (edited) I viewed a few house the other day ina development and left my number for an "independent" advisor to call me about mortgage rates. he called me giving the usual rubbish about now is the time, rates are low bla bla blah. Basically he worked out with both our wages we could get a £200,000+ mortgage which baffles me as we are first time buyers with minimal depost and average wages. turns out the reason i coulf afford the monthly payements was that he was putting it over 40 years!! Who the hell takes a 40 year mortgage? This bugs the life out of me, it really does ... but in a way I am glad that you highlighted that this is still happening as others kids themselves that it is not! 30/35 & 40 year MTG's are still the norm for FTBers and if this is what is required to support affordability then what more of a clearer message can be given that affordability has still not returned to normal levels. This is exactly the type of financial adviser who should be struck off in my opinion. Based on your example ... a £200k MTG over 40 years would result in you paying over half a million for the property (including interest) ... it really is shocking I am just sick of it all and im sick and tired of people/EA's clinging on to the past. the sooner they realise that house prices need to be cut substantially (not the 5 grand decreases i see using property bee) the better. RANT OVER The sooner ppl start telling EA's this message the better ... too many ppl appear to give them too much credit and massage their ego's when dealing with them. Treat them with the contempt they deserve. Edited May 8, 2012 by tinbin Quote Link to comment Share on other sites More sharing options...
vman7 Posted May 8, 2012 Author Share Posted May 8, 2012 just to clarify it was a 240k with possibility of £250k mortgage. not bad for a 27 year old couple on normal wages!! i have calmed down a bit today as i have decied to stay on in my rental property on a rolling contract. the problem is how many more years can i keep telling myself that next year is the year. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted May 8, 2012 Share Posted May 8, 2012 just to clarify it was a 240k with possibility of £250k mortgage. not bad for a 27 year old couple on normal wages!! i have calmed down a bit today as i have decied to stay on in my rental property on a rolling contract. the problem is how many more years can i keep telling myself that next year is the year. And people try to tell me that banks have stopped lending at silly multiples. The Halifax has offered my GF and I 5 times joint income. Over 350K FFS. Quote Link to comment Share on other sites More sharing options...
tinbin Posted May 8, 2012 Share Posted May 8, 2012 just to clarify it was a 240k with possibility of £250k mortgage. not bad for a 27 year old couple on normal wages!! i have calmed down a bit today as i have decied to stay on in my rental property on a rolling contract. the problem is how many more years can i keep telling myself that next year is the year. Look at it this way. If you had a choice between throwing money into a fire ... or not ... which would you choose???? I assume you would not. You might as well throw it into a fire buying now, especially if you are FTBer and have never been on the market before as more drops will come ... I am absolutely certain of it. If you where on the market before and got off at a good time, then I could understand why you might wish to get back on again rather than waiting it out to the endless bottom., but even then you would still expect to save money by waiting. My advice - don't waste money unnecessarily, no point in putting all your eggs in one basket when you don't need to. The very fact that there is virtually no VI opinions or counter arguments on this forum tell you where things are heading. Patience will pay off in this market Quote Link to comment Share on other sites More sharing options...
tinbin Posted May 8, 2012 Share Posted May 8, 2012 And people try to tell me that banks have stopped lending at silly multiples. The Halifax has offered my GF and I 5 times joint income. Over 350K FFS. The Halifax is a law onto itself .... this is a company that gives 'team leaders' in the call centre in Belfast a company car ffs. I once had a small savings account with them and every time I went into the Branch they offered me an overdraft of £1000 & credit card of £8000 if I switched my banking to them (at the counter - without any assessment - because the computer in front of them said they could!) Where will the Halifax be in 10 years time??? They are already on the brink and by the sounds of things have not learned any lessons from the past Quote Link to comment Share on other sites More sharing options...
yadayada Posted May 8, 2012 Share Posted May 8, 2012 a £200k MTG over 40 years would result in you paying over half a million for the property (including interest) ... it really is shocking Ah but what how many million will the house be worth then? Probably. And a pint of milk will be £47. Quote Link to comment Share on other sites More sharing options...
Realistic NI EA Posted May 8, 2012 Share Posted May 8, 2012 The Halifax or any lender can offer you any figure in principle following a quick chat with one of their advisors but that's not the same thing as having a 'Mortgage Offer' following an official mortgage application. There is also the small matter of the property valuation carried out by one of the surveyors on their panel which is carried out to protect the lender from giving you more than the house is worth. If they get it slightly wrong and prices drop a bit more they will still be ok as it will be your deposit which is eaten up first when you sell to move on. This may help this guy who wants to buy a detached house in Lisburn for £240,000 as chances are the surveyor will down value the property to a more realistic price based on what other houses have sold for recently. What I'm saying is that there are plenty of lenders who are offering mortgages for everyone and making a big song and dance about it, but once you get down to the application, underwriting and valuation stage only the most credit worthy people with good affordability and a good deposit will get the 'Offer'. We're experiencing a noticeable increase in first time buyer enquiries which often leads to offers being made on decent value properties. The problem is that these people have a budget in mind based on what the bank teller told them after a 2 minute conversation earlier that day. You would not believe the amount of people who still think they can buy a house with absolutely no deposit (nevermind the legal fees and moving costs). They still wander into the local Northern Bank hoping to be approved as they heard the Northern are giving mortgages to everyone! Mortgages are very hard to get and the process can be long and stressful depending on what lender you go to, so don't get carried away with paying too much for a house as there won't be a dozen other buyers waiting to pick this house up. Quote Link to comment Share on other sites More sharing options...
Gadget Guy Posted May 8, 2012 Share Posted May 8, 2012 .....There is also the small matter of the property valuation carried out by one of the surveyors on their panel which is carried out to protect the lender from giving you more than the house is worth. If they get it slightly wrong and prices drop a bit more they will still be ok as it will be your deposit which is eaten up first when you sell to move on. This may help this guy who wants to buy a detached house in Lisburn for £240,000 as chances are the surveyor will down value the property to a more realistic price based on what other houses have sold for recently...... Problem is that 2 of these houses have sold in th last 2-3 months at that price. So that leads me to believe it was valued by the surveyor and deemed to be worth that figure on both occasions. Quote Link to comment Share on other sites More sharing options...
Gadget Guy Posted May 8, 2012 Share Posted May 8, 2012 I have not checked. But I suspect they did sell at that price. Can I apply to check online? Surely if the surveyor says the house isn't worth it, then the builder would be wasting his time advertising it at such a price? Quote Link to comment Share on other sites More sharing options...
Ride_on Posted May 10, 2012 Share Posted May 10, 2012 Surely if the surveyor says the house isn't worth it, then the builder would be wasting his time advertising it at such a price? Not in their minds, they are supporting the price myth for others and themselves. If you want to sell in a market competitive for buyers you have to be at the bottom end of the price bands, those that are not are living in false hope and chasing the market down. They probably also kid themselves that the rates holiday for new builds is benefiting them, while they pay 4 times the amount on bank interest. Quote Link to comment Share on other sites More sharing options...
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