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Natwest just removed all 5/10/15% deposits?


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Just went to check a monthly repayment figure and noticed i couldn’t put in any deposit amount less than 20%...

I had arranged to buy and pulled out in March due to coronavirus and had a 10% deal. Looks like I’ll need to save more and/or lower my top budget.

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Looking at it logically doesn't that mean the lenders think property prices are on the downward trajectory........you lose your money first before they lose theirs......15% drops? ;)

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Yes I think it means lenders believe houses are on the way down! But reading the other posts I’m sitting on a cash deposit too that’s about to be eroded! 

Damned either way I think! But yes, another signal that prices will come down. I just hope they come down quicker than my deposit is eroded!

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Funny, my cash deposit is aimed at being at least 20% and if other lenders follow suit, then it means I am better off since my competition won't necessarily match it. 

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2 minutes ago, regprentice said:

Apparently 90% of low deposit mortgages have been withdrawn

https://www.moneyexpert.com/news/banks-withdraw-90-of-low-deposit-mortgages/

 

As a 2nd time buyer, who wouldn't have a 20% deposit?

As a 1st time, it's HTB, init?

What am I missing here?

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2 minutes ago, whynow said:

Yes I think it means lenders believe houses are on the way down! But reading the other posts I’m sitting on a cash deposit too that’s about to be eroded! 

Damned either way I think! But yes, another signal that prices will come down. I just hope they come down quicker than my deposit is eroded!

To my mind there'll be a short sweet spot where house prices initially fall and inflation is yet to seriously erode savings. The skill (and luck) comes in identifying that moment then going for it. Got to admit, I'm sat on cash life savings, and I'm kind of half bricking it whilst trying to stay calm and rational about this whole thing. 

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13 minutes ago, Killer Bunny said:

As a 2nd time buyer, who wouldn't have a 20% deposit?

As a 1st time, it's HTB, init?

What am I missing here?

Moving up to a bigger property? Could well need more than the built up equity in property 1 especially if property 1 was at 95%

Htb loan to repay after 5 years and needing to upsize? Effectively eating up to 40% or property 1s value depending which htb scheme you were in. 

Couples splitting up (about to become a 2nd pandemic....) 

Your existing property has just tanked in value relative to where you are moving - perhaps you're moving from London to the lakes to remote work. 

Most remortgages are off the back of short deals (2, 3 years) won't have eaten into the capital much in that time as early repayment in the mortgage are mainly interest not capital. 

Some people live at 95%, my mum and dad used to remodel room after room and remortgage each time. Mortgage rates cheap debt compared to loans or credit cards

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7 minutes ago, regprentice said:

Moving up to a bigger property? Could well need more than the built up equity in property 1 especially if property 1 was at 95%

Htb loan to repay after 5 years and needing to upsize? Effectively eating up to 40% or property 1s value depending which htb scheme you were in. 

Couples splitting up (about to become a 2nd pandemic....) 

Your existing property has just tanked in value relative to where you are moving - perhaps you're moving from London to the lakes to remote work. 

Most remortgages are off the back of short deals (2, 3 years) won't have eaten into the capital much in that time as early repayment in the mortgage are mainly interest not capital. 

Some people live at 95%, my mum and dad used to remodel room after room and remortgage each time. Mortgage rates cheap debt compared to loans or credit cards

Thk u Reg  (What have the Romans ever done for us?)

Indeed.  Moving from HTB would be an issue. ?

Most divorcing would have 20%, or at least one of them would.  Divorce lawyers can't believe their luck about all the work they have on now...

Remortgages after 3 years, in London. Aye.

Indeed. Lots missed, thx again.

 

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31 minutes ago, Killer Bunny said:

As a 2nd time buyer, who wouldn't have a 20% deposit?

As a 1st time, it's HTB, init?

What am I missing here?

If price now>price paid then deposit = (initial deposit + capital repaid + savings since + increase)/more expensive second house

If price now<price paid then deposit = (initial deposit + capital repaid + savings since - decrease)/more expensive second house

Assuming for the first few years you pay off roughly 3% of capital per year, saving £200/month.

So House 1 is £150000 with a 10% deposit 2 years ago = (15000 + 8100 + 4800) = 27900

House 2 is £250000 so £27900 is 11.16%. If you have owned longer there is more capital repayments and savings, at flat pricing, you it 20% after slightly more than 5 years. Quicker with price increases, slower with decreases.

However, if you used HTB for a 5% deposit on an overpriced new build, the haircut is first your 5% deposit, then the government's 20%, then the bank's 75%.

 

 

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4 hours ago, Killer Bunny said:

As a 2nd time buyer, who wouldn't have a 20% deposit?

As a 1st time, it's HTB, init?

What am I missing here?

Very few banks offer HTB mortgages. HBOS n NW mainly.

Few to none want HTB remortgages. Like herpes, HTB SVR is for life.

Oh, and the catch with htb is you have to buy a crap new build that's had the price bumped up to swallow the htb 'free' money.

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6 minutes ago, spyguy said:

Very few banks offer HTB mortgages. HBOS n NW mainly.

Few to none want HTB remortgages. Like herpes, HTB SVR is for life.

Oh, and the catch with htb is you have to buy a crap new build that's had the price bumped up to swallow the htb 'free' money.

They're STATE banks that's why .  They will go down (again) soon.

 

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10 hours ago, spyguy said:

Very few banks offer HTB mortgages. HBOS n NW mainly.

Few to none want HTB remortgages.

Oh, and the catch with htb is you have to buy a crap new build that's had the price bumped up to swallow the htb 'free' money.

I did not know few did HTBs.

And yet many 000s have taken it on. Hence HPI.

Since when were house buyers informed and smart?

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15 hours ago, regprentice said:

Apparently 90% of low deposit mortgages have been withdrawn

https://www.moneyexpert.com/news/banks-withdraw-90-of-low-deposit-mortgages/

However as I posted the in another thread if you can take a 75% mortgage the rates are still rock bottom  circa 1.11% with 1-2k in fees. 

Fixed for how long?

Anyway, when you default, the bank takes your house. When the bank defaults, you...

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40 minutes ago, Locke said:

Fixed for how long?

Anyway, when you default, the bank takes your house. When the bank defaults, you...

Typically 5 years, some 2 years. 

Lowest rate was rbs 1.21%, with no fee, for 5 years for a 75% ltv. Next best were HSBC and nationwide both offering 1.49% over 5 years at 75% ltv with a £999 fee. 

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1 hour ago, Killer Bunny said:

I did not know few did HTBs.

And yet many 000s have taken it on. Hence HPI.

Since when were house buyers informed and smart?

Yeah -  IIRC Nationwide n HBOS account for 70%+ of HTB loans.

Hilariously, NW were going round begging other lenders to take its HTB remortgages. 

 

I dont think HTB causes HPI, at least for the man in the street - or in  the non new house.

Offloading shit new builds and inflating house builders shares Yep.

Heres how I reckon 99% of HTB will pan out..

MrNMrs HTB put up 5%, UKGOV puts up 20%, housebuilder puts up house price 30%...

5 years go like it was few days.

Equity loan comes into play. MrnMrs HTB look to remortgage but the house is valued at least 30% less than they paid for it.

Mortgage payments start rising steep as they go from 2% discount to 5%_ SVR. and 20% equity loan starts going nuts.

Mrs HTB knocked up, one income down. Icoem for mortgage more than halves. Thats 5x loans is now 10x.

The 20% social housing in the HTB estate is joined by a 20% BTL private rentals, picking up the people the LHA/council wont touch.

 

Like IO BTL, HTB is going to be massive negative for HPI.

HPI requires a chain of FTB, 2ndTB etc to keep the chain moving.

As it is, esp in the North, theres only a one-timebuyer now 0- FTB are too old, too overstreched. The few houses that sell are existing OO using up their equity.

This is going on as the simple demographics of 50% of 65 and above will die in the next 10 years.

Im off an age now where my friends parents are starting to drop like flies. In the last few years, about 30% of school mates parents have died.

 

 

 

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2 minutes ago, regprentice said:

Typically 5 years, some 2 years. 

Lowest rate was rbs 1.21%, with no fee, for 5 years for a 75% ltv. Next best were HSBC and nationwide both offering 1.49% over 5 years at 75% ltv with a £999 fee. 

Interesting. HSBC were always the lowest..

HSBC has been blowing Natiowide out of thhe prime mortgage market for 5 years.

NW is very Northerh Rockish, as the well padded borrowers of 20 years ago pay off their mortgages, leaving the junk.

 

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  • 415 Brexit, House prices and Summer 2020

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      • up 5%



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