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mayjay

Buyers Who Do Not Have 10% Deposits Are Left Out In The Cold

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http://business.timesonline.co.uk/tol/busi...icle3456174.ece

Lloyds TSB has become the biggest lender to refuse mortgages to buyers who do not have a 10 per cent deposit.

From today, Cheltenham & Gloucester, which is part of the group, will no longer offer more than 90 per cent of the value of a property. Experts fear that other lenders will do the same, making it impossible for most first-time buyers to get on the ladder.

Ray Boulger, of John Charcol, the mortgage broker, said: “For a lender the size of Lloyds to do this is quite worrying. If we start to see too many lenders restricting loan-to-value ratios it will affect the property market and prices could dip.
Edited by mayjay

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Nahh, just returning to time tested sensible lending criteria.

100% mortgages should never ever have existed.

Poor old Ray Boulger. He wants to talk the market up, but has to kep his "ironclad" reputation as a property expert intact.

This is a bit of a black swan in itself to a lot of people outside this site.

Prices only ever go up.

But what if the banks stop lending?

That will never happen. Another 125% BTL mortgage please barman.

All that pent up demand, and nowhere for it to go.

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The spin on this story is quite desperate, if a ten percent deposit is required it will not make it impossible for first time buyers to get on the ladder. The asking prices of property will have to fall to the levels that match the deposits.

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The spin on this story is quite desperate, if a ten percent deposit is required it will not make it impossible for first time buyers to get on the ladder. The asking prices of property will have to fall to the levels that match the deposits.

I think you stole my thoughts. :huh:

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Prices could dip ?

This must be the understatement of the millennium. If FTB are going to have to stump up 10% deposits then average house prices are going to have to drop somewhere near £100,000 for them to be remotely affordable. This is a major signal that there is going to be a massive crash in home values.

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Nahh, just returning to time tested sensible lending criteria.

100% mortgages should never ever have existed.

100% true.

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The spin on this story is quite desperate, if a ten percent deposit is required it will not make it impossible for first time buyers to get on the ladder. The asking prices of property will have to fall to the levels that match the deposits.

yes it will, your looking at 10% plus stamp duty your looking at 13% min plus mortgage arrangment. Around 26K needed just for deposit and stamp duty.

Edited by crash2006

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yes it will, your looking at 10% plus stamp duty your looking at 13% min plus mortgage arrangment. Around 26K needed just for deposit and stamp duty.

If you earned 26k gross (around average salary still??), it would take you 18 months or so to bank that after paying taxes.... and nothing else! So imagine how many years it would take to save that much cash!

There'll be an outcry, if the banks won't change the gumment will step in with "homeowner loans".... unless the average really does drop below 100k.

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Nahh, just returning to time tested sensible lending criteria.

100% mortgages should never ever have existed.

The daft thing is I remember exactly the same sentiment during the last crash. All the lenders pulled their 100% mortgages and the lesson that they said they had learned was that this kind of irresponsible lending should never happen again.

It seems that a banker's memory span is only slightly more than than that of a goldfish.

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Sorry for being a pain, but some who's out in the cold without the 10% cannot be called a "buyer".

call it a dreamer, if you like. :lol:

What a culture shock. Can't buy a house on me dole money no more

edited for spelling

Edited by stuckmojo

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This is nothing like the nineties.

Then, approaching half the population of youngsters were not encumbered with huge albatross education loans round their necks. For many approaching £20K a pop (double it for your double income mortgage application) is a sum of money that will take years if not approaching decades to pay off in itself.

We also have the inflation of the nineties without the wage rises to match.

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sorry to sound like a boring old man , but when I ist bought a house with my now ex wife , having a 10% deposit was the norm . 100% mortgages added fuel to the fire of the house price boom .

Let's hope that 10% becomes the norm again !!!

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The daft thing is I remember exactly the same sentiment during the last crash. All the lenders pulled their 100% mortgages and the lesson that they said they had learned was that this kind of irresponsible lending should never happen again.

It seems that a banker's memory span is only slightly more than than that of a goldfish.

Typical bubble behaviour - loosening all the spigots on the way up and then having to tighten on the way down.

Anybody with half a brain could see the bubble nature of this market, though judging that it would be allowed to get so out of control you'd have to be betting on the people at the top to have been utterly complicit in letting the bubble run and run. The Bankrupt of England had members who repeatedly either stated that bubbles couldn't be identified or could be controlled whilst allowing the do what it should do - total and utter ********.

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This must be the understatement of the millennium. If FTB are going to have to stump up 10% deposits then average house prices are going to have to drop somewhere near £100,000 for them to be remotely affordable.

Based on what I can afford to borrow and what I'm likely to have to shell-out on fees and furniture I reckon a 10% deposit requirement gives me a budget of £60k!

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Based on what I can afford to borrow and what I'm likely to have to shell-out on fees and furniture I reckon a 10% deposit requirement gives me a budget of £60k!

get saving!

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This is massive, IF other lenders follow suit. There's still plenty offering 100% at the moment. When we get YoY -ve prices tho...

It's quite clear that house prices will crash and we will have a housing led recession. A mild depression is looking more and more likely. If you look at inflation indicators worldwide, the less indebted nations are going to have to put interest rates up, whilst high debtors like UK/US will have to drop theirs, bite any short term inflation and start paying their way in the world again.

And Gordon will need to sack 12,000 civil servants every month.

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This is massive, IF other lenders follow suit. There's still plenty offering 100% at the moment. When we get YoY -ve prices tho...

I thought it was just B&B and their BTL company Mortgage-Express, all the others have left AFAIK ?

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get saving!

This increased diligence by the banks is right and proper and good for the 'cause'. It is indeed right to send penniless chavs packing.

However it seems a bit stupid to send young professionals with a small deposit looking for 4x to another lender.

In the mid 80s I was given 4x salary, 95% LTV at 22 when I had excellent promotion and pay prospects and it was absolutely the right thing for me and the lender. House prices on the long term trend line at the time.

Competent lenders take every case on its merits. This broadbrush approach smacks of panicky amateurism.

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  • 298 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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