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delboypass

Ftb - Goes To Morgage Advisor

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A FTB goes to a morgage advisor.(28 years old on above average salary)

Tells him his salary.

Morgage advisor says, 'You wont get much with that'.

Morgage advisor thens says, we have two deals for you.

1/ 100% morgage for £73,000 (probably buy you a crap 1 bedroomed house in low poverty area)

2/ 125% morgage for £81,000 (probably buy you a crap 1 bedroomed house in middle class county)

The market is shafted.

I personally know 15 FTB's priced out of the market about 25-30 who have no chance of owning their own home unless they want to renovate a council house or drugs den all who earn over the average salary.

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A FTB goes to a morgage advisor.(28 years old on above average salary)

Tells him his salary.

Morgage advisor says, 'You wont get much with that'.

Morgage advisor thens says, we have two deals for you.

1/ 100% morgage for £73,000 (probably buy you a crap 1 bedroomed house in low poverty area)

2/ 125% morgage for £81,000 (probably buy you a crap 1 bedroomed house in middle class county)

The market is shafted.

I personally know 15 FTB's priced out of the market about 25-30 who have no chance of owning their own home unless they want to renovate a council house or drugs den all who earn over the average salary.

I went to a EA mortgage adviser that almost wet himself when I said we earn 80K a year, he then went on to show us some crappy 1&2 bed flats that would only cost us 1k a month, I left after that and found HPC website.

ril

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The market is shafted.

Agreed.

We all know the market is completely shafted.

Dunno why you would talk to a mortgage lender at the moment, it will probably turn up in some statistic somewhere used to claim fresh interest.

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I personally know 15 FTB's priced out of the market about 25-30 who have no chance of owning their own home unless they want to renovate a council house or drugs den all who earn over the average salary.

I don't doubt that many would-be FTBs are totally priced out. But not all. There are also many who have amassed significant deposits over the last few years and, given the last 15 months or so have seen little HPI, have "caught up" with house prices to some extent. I expect these will now dribble back into the market as media reports of "15 months of flat or falling prices, but picking up now" give the impression that now is a good time to buy. These people will not want to see their deposits eroded again. I'll be interested to see of the proportion of FTBs picks up over the next few months.

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I don't doubt that many would-be FTBs are totally priced out. But not all. There are also many who have amassed significant deposits over the last few years and, given the last 15 months or so have seen little HPI, have "caught up" with house prices to some extent. I expect these will now dribble back into the market as media reports of "15 months of flat or falling prices, but picking up now" give the impression that now is a good time to buy. These people will not want to see their deposits eroded again. I'll be interested to see of the proportion of FTBs picks up over the next few months.

If you graph out the FTBer stats in the last crash, FTBers were the group to return to the market first, many jumped back in too early...

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Ye i know - wasnt me though...was a friend

I just wished I was younger and didnt have a nice big deposit slowly disintegrating.

I want to be a 19 year old again with 100 grand on credit cards laughing at the world trying to make it as high as possible before the cards crumble and not paying back a thing ;-))

Maybe we should start a thread/poll on who is now so peeved off that they are ready to commit a major fraud.

'APB out on some HPC'ers robbing MP's houses (they have about 4 each) across the country'

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If you graph out the FTBer stats in the last crash, FTBers were the group to return to the market first, many jumped back in too early...

That's interesting to learn. It's what you'd expect too: FTBs are surely the most anxious and easily manipulated group of buyers.

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I don't doubt that many would-be FTBs are totally priced out. But not all. There are also many who have amassed significant deposits over the last few years and, given the last 15 months or so have seen little HPI, have "caught up" with house prices to some extent. I expect these will now dribble back into the market as media reports of "15 months of flat or falling prices, but picking up now" give the impression that now is a good time to buy. These people will not want to see their deposits eroded again. I'll be interested to see of the proportion of FTBs picks up over the next few months.

At peak in Exeter a converted attic studio flat in a nasty house would be sold for about £100,000

This is Devon.. we are not the richest...

:)

Patience

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I don't doubt that many would-be FTBs are totally priced out. But not all. There are also many who have amassed significant deposits over the last few years and, given the last 15 months or so have seen little HPI, have "caught up" with house prices to some extent. I expect these will now dribble back into the market as media reports of "15 months of flat or falling prices, but picking up now" give the impression that now is a good time to buy. These people will not want to see their deposits eroded again. I'll be interested to see of the proportion of FTBs picks up over the next few months.

If these would-be FTBers can beat 100%-200% in four years, then they should be working for f**king Merrill Lynch.

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I personally know 15 FTB's priced out of the market about 25-30 who have no chance of owning their own home unless they want to renovate a council house or drugs den all who earn over the average salary.

What effect do you guys think the Shared Ownership scheme is having on sustaining the current market?

My friends sister (26 YO, working in London, FTB) wants to get on the property ladder.

She wants to do this through the Shared Ownership scheme.

I'm told it's 'popular', so is it having a significant dampening effect on the normal boom/bust property cycle?

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I'm told it's 'popular', so is it having a significant dampening effect on the normal boom/bust property cycle?

Maybe for a short time, but before long the supply of 'financially special' buyers will run out.

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What effect do you guys think the Shared Ownership scheme is having on sustaining the current market?

My cousin has done this.

I cannot understand why anyone would want to actually go through with this sort of scheme. It doesn't make "having your own place" any more affordable in the future, since any HPI would multiply up the price of your desired home by the same(ish) factor.

The only reason to do this is if the payments on the mortgage are less than your share of a rental.

But that assumes that monthly rental prices are more expensive than monthly mortgage payments. Which of course... :D

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What effect do you guys think the Shared Ownership scheme is having on sustaining the current market?

My friends sister (26 YO, working in London, FTB) wants to get on the property ladder.

She wants to do this through the Shared Ownership scheme.

I'm told it's 'popular', so is it having a significant dampening effect on the normal boom/bust property cycle?

Priff,

The previous scheme has now ended I believe and has needed to be extended. I think it ran out of suckers, well enough suckers to keep the figures up. Just like raising the stamp duty limit did just before the election - but then we know why that was introducwed then - purely political to keep the plates spinning whilst the polls were still open.

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I don't doubt that many would-be FTBs are totally priced out. But not all. There are also many who have amassed significant deposits over the last few years and, given the last 15 months or so have seen little HPI, have "caught up" with house prices to some extent. I expect these will now dribble back into the market as media reports of "15 months of flat or falling prices, but picking up now" give the impression that now is a good time to buy. These people will not want to see their deposits eroded again. I'll be interested to see of the proportion of FTBs picks up over the next few months.

You're right: not all of us first time buyers are priced out, but it's a question of what your expectations are. I really don't want to spend all of my hard earned/saved cash and over stretch on a large mortgage to buy a pokey 1 bed above the chip shop, and that's about the sum of it at the moment. For me, I'm looking for a time when my average salary can buy an average property (with a decent deposit), is that unreasonable, illogical?

The only people now to erode our deposits (it seems) are other FTB's the abscence of which is an often quoted reason for a lack lustre market. ("What's the matter with them, don't they know a good thing when they see it?"). I saw in the London Metro today an ad for property "STOP RENTING START BUYING"; seems a pretty clear message as to who is being targeted for sales? (They've probably never heard about the concept of STR or maybe that was who they were really targeting!?)

I'm hoping that FTBs won't be suckered in to the logic you're proposing, if they are I don't think they'll prop up the market anyway, once it starts a major downward move, there is too much weight above. It just means more pain for everyone.

As someone has mentioned the FTBs will be first back into the market after the crash. We should be viewed as an insurance policy stopping the market hitting rock bottom when the crash comes, by then our financial strength will have returned and we can make a difference to the market.

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Guest boredwaiting

A FTB goes to a morgage advisor.(28 years old on above average salary)

Tells him his salary.

Morgage advisor says, 'You wont get much with that'.

Morgage advisor thens says, we have two deals for you.

1/ 100% morgage for £73,000 (probably buy you a crap 1 bedroomed house in low poverty area)

2/ 125% morgage for £81,000 (probably buy you a crap 1 bedroomed house in middle class county)

The market is shafted.

I personally know 15 FTB's priced out of the market about 25-30 who have no chance of owning their own home unless they want to renovate a council house or drugs den all who earn over the average salary.

I can't begin to explain my frustration on this. It is absolutely absurd the way this has all worked out.

I worked hard on my studies, i am not bright but can work hard. Stayed in most nights during the school years - got my A-levels a good degree and a ph.d. which I recieved a couple of awards for (small time stuff). I now have a good job, above average salary and continue to work hard. I have the modern toys like flat screen tv laptop mountain bike and some other sports gear (but that's about the sum of it - I don't own much more than that). I have saved hard and have a large amount of money sitting in several bank accounts (not a kings ransom by any means but enough that I am not worried too much financially).

I don't want to be a victim about this but I want to buy a house and have a family but just cannot bring myself to buy a house in an area that i didn't aspire too. I can't wait much longer or I will be single and have no chance of having a family. But will this crash happen?

We have talked about it for a long time. I have read and supported a lot of views. I do believe personally the market will correct itself. But will it happen? Just because some of us believe it will happen doesn't necessarily mean that it will. We could all be wrong, up to date we are wrong - prices are high, they are showing signs that they might drop - we use these numbers to justify to ourselves that it will (and again I believe this).

But what if we are wrong!

What if there is a change, the majority are willing to extend themselves to the limit - take mortgages over three generations etc.

We may be a real minority in this country that believe that we own our house and our houses do not own us. Would that mean we would relocate to another country or live in rented forever.

I realise this doesn't add anything to the knowledge on the forum, but it gives me a chance to vent my frustration and not go postal at work :)

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I can't begin to explain my frustration on this. It is absolutely absurd the way this has all worked out.

I worked hard on my studies, i am not bright but can work hard. Stayed in most nights during the school years - got my A-levels a good degree and a ph.d. which I recieved a couple of awards for (small time stuff). I now have a good job, above average salary and continue to work hard. I have the modern toys like flat screen tv laptop mountain bike and some other sports gear (but that's about the sum of it - I don't own much more than that). I have saved hard and have a large amount of money sitting in several bank accounts (not a kings ransom by any means but enough that I am not worried too much financially).

I don't want to be a victim about this but I want to buy a house and have a family but just cannot bring myself to buy a house in an area that i didn't aspire too. I can't wait much longer or I will be single and have no chance of having a family. But will this crash happen?

We have talked about it for a long time. I have read and supported a lot of views. I do believe personally the market will correct itself. But will it happen? Just because some of us believe it will happen doesn't necessarily mean that it will. We could all be wrong, up to date we are wrong - prices are high, they are showing signs that they might drop - we use these numbers to justify to ourselves that it will (and again I believe this).

But what if we are wrong!

What if there is a change, the majority are willing to extend themselves to the limit - take mortgages over three generations etc.

We may be a real minority in this country that believe that we own our house and our houses do not own us. Would that mean we would relocate to another country or live in rented forever.

I realise this doesn't add anything to the knowledge on the forum, but it gives me a chance to vent my frustration and not go postal at work :)

Well said.

I have often wondered myself if we have now moved into an era of debt - what if it doesn't all come crashing down - what if we now live in times where it is only possible to have the basics in life by getting into debt?

We may be in a new era - but I just can not bring myself to take on a mortgage for 1/4 million pounds (sounds a lot when you say it like that) to buy a terrace house.

My one solace is that if FTB are down to 7% then we are not the only ones rejecting the housing market. I honestly don't think that all young first time buyers are as daft as some people think. Either they can't or won't buy at these prcies - whichever it is the only way houseprices can go is down - but how long will that take?

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I worked hard on my studies

No disrespect, but this is irrelavent.

So the Bank of England halve interest rates from 7% to 3.5% in a few years, and that causes property to double in price. Then they increase them by 28% from 3.5% to 4.5% and the property game stops. Why? Because peak prices weren't relaxed by a corresponding amount:

1.00 / 1.28 = 0.78125, so IMO asking prices across the board "should" be 78% of the peak asking price.

But since they're not, we've gone from 20%YOY growth to bugger all in just a year.

But what if we are wrong!

What if there is a change, the majority are willing to extend themselves to the limit - take mortgages over three generations etc.

Then they will be significantly poorer than their predecessors because of just a few short years. So, one could speculate that they're effectively banking on massive wage increases to bail them out of a proportionately disadvantaged future lifestyle.

The only slight snag with respect to this is that - from where we are now with alleged "full" employment (cough) - is that such wage increases would guarantee mass redundancies during such a correction. Since there's no magic pots of money hanging around in your employer's bank. In turn we would have our forced sellers necessary for a house price crash.

So, there's everything to play for.

B)

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I know somone who bought a small flat last year, large salary multple, there on an average income. Suffice to say there struggling and have increasing debts.

I know a girl (single mum) who has a council house, she is now struggling with her morgage, she has missed the last two payments. She is wanting to downsize/move to cheaper area, move to redditch to reduce her payments....

I know a teacher who has just bought/buying a small flat for 100k, she has been living at her parents rent free... IMO she is in for a big shock when she starts paying the morgage and bills....

People are struggling now, people cant struggle for long...

Edited by moosetea

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My one solace is that if FTB are down to 7% then we are not the only ones rejecting the housing market. I honestly don't think that all young first time buyers are as daft as some people think. Either they can't or won't buy at these prcies - whichever it is the only way houseprices can go is down - but how long will that take?

Another small but significant factor in all of this is dual incomes - many FTB's are couples who both earn average salaries, as opposed to 20 or 30 years ago when ther was only 1 breadwinner. My sister for example has shacked up with her boyfriend, and where they were both paying £300 a month rent seperately, they have now taken on a £600 a month mortgage for a 2 bedroom new build cardboard box - and as it is the same monthly figure it seems entirely reasonable to them, they are glad to be on the ladder.

This £600 a month mark for 2 working people seems to be about the average FTB affordability level in her part of the north, which is what has pushed every entry level house up to the £110 - £120 grand mark. More expensive stuff, 4 bed detached etc haven't risen nearly as much in poorer areas.

If it was purely down to 1 salary, this woudn't have happened.

The average man on the average salary may not be able to afford the average home, but the average couple might just be able to if they stretch...

Edited by spuggy

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This 'working couples' business has been the case for a long while now, since way before the boom.

Maybe we'll adjust our society and allow a man to have a live-in-mistress. Or maybe we'll go Roman...

:lol:

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This 'working couples' business has been the case for a long while now, since way before the boom.

Maybe we'll adjust our society and allow a man to have a live-in-mistress. Or maybe we'll go Roman...

Mmm... My very own Harem!

Well now that Tony's legalised brothels, why not?

Could you rent a residential property to be a Brothel, or would it have to be reclassified as commercial?

How about it TTRTR - you could corner the market early!

And on this random line of thought, is this likely to push up the value of 3 bed properties!?! :D

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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