Jump to content
House Price Crash Forum

Recommended Posts

A person who works for me despite everyone saying "dont do it", is insistant on buying a £300,000 home. Theres only one problem, the deposit.

Lloyds TSB have offered him a mortgage in principle, but they want 80% LTV on a £300,000 which is £60,000 and they want to charge an arrangement fee of £895 and he will have to stamp duty of £3,000 +

Then he has the joy of paying £ 2,168.42 a month for the next 25 years.

Everyone has been taking p1ss. I said to him, rent a house, save the money if prices come down, buy if not think how much you have saved.

He is determined and theres no talking to some people.

Share this post


Link to post
Share on other sites

A friend of mine thinks they have sold their home and they are looking to buy another one. I said to STR but they want to buy again as they have too many tools in their shed and don't want the hassle of a double move--from rental to buying.

Sheeple will always be with us.

Share this post


Link to post
Share on other sites
A person who works for me despite everyone saying "dont do it", is insistant on buying a £300,000 home. Theres only one problem, the deposit.

Lloyds TSB have offered him a mortgage in principle, but they want 80% LTV on a £300,000 which is £60,000 and they want to charge an arrangement fee of £895 and he will have to stamp duty of £3,000 +

Then he has the joy of paying £ 2,168.42 a month for the next 25 years.

Everyone has been taking p1ss. I said to him, rent a house, save the money if prices come down, buy if not think how much you have saved.

He is determined and theres no talking to some people.

Surely stamp duty will be around £9k? 3% > £350k

M21er

Share this post


Link to post
Share on other sites
Lloyds TSB have offered him a mortgage in principle, but they want 80% LTV on a £300,000 which is £60,000 and they want to charge an arrangement fee of £895 and he will have to stamp duty of £3,000 +

Maybe he can get £60k of unsecured debt for the deposit :P

When you write the numbers down you see how stupid the whole market has become !!!

Share this post


Link to post
Share on other sites
Maybe he can get £60k of unsecured debt for the deposit :P

When you write the numbers down you see how stupid the whole market has become !!!

60k aka 20% deposit!!!

surely that'd bring houses down like a tonne of bricks!

i mean who the hell has 60k ready to put down as a deposit?

most 20 somethings will still be paying off student debts

30 somethings might have a bit of dough but 60k - i think only a small minority would be able to stump up that kind of cash

Share this post


Link to post
Share on other sites

Come on guys, aa bit of perspective... a FTB is not going to be buying a 300k house, and even in this mad housing environment, I don't think they ever were.

No, they were buying the £150k 2up2dows, so the movers could buy the 300k houses.

Of course, I still doubt most FTBs will have it in their heads that they need to save a deposit and fees yet. I reckon at least 50% of the FTB market has been removed by the deposit requirement alone.

The FTB homes will shortly be £100k houses, and the £300k houses will be £200k.

Within 2 years I reckon :o

Share this post


Link to post
Share on other sites
Come on guys, aa bit of perspective... a FTB is not going to be buying a 300k house, and even in this mad housing environment, I don't think they ever were.

No, they were buying the £150k 2up2dows, so the movers could buy the 300k houses.

Of course, I still doubt most FTBs will have it in their heads that they need to save a deposit and fees yet. I reckon at least 50% of the FTB market has been removed by the deposit requirement alone.

The FTB homes will shortly be £100k houses, and the £300k houses will be £200k.

Within 2 years I reckon :o

good luck trying to find a home for 150k in london

Share this post


Link to post
Share on other sites
60k aka 20% deposit!!!

surely that'd bring houses down like a tonne of bricks!

i mean who the hell has 60k ready to put down as a deposit?

most 20 somethings will still be paying off student debts

30 somethings might have a bit of dough but 60k - i think only a small minority would be able to stump up that kind of cash

I don't think 30k is in range either...

5 maybe?

Share this post


Link to post
Share on other sites
Surely stamp duty will be around £9k? 3% > £350k

M21er

3% thats a lot of dosh.

So lets tally this up.

He is a first time buyer in case you were wondering. No girlfriend or wife and no kids. Credit cards with fancy pictures on and I gave him a refernce for a loan from HFC Bank (part of HSBC) judging from the logo.

So thats :

-------------------------------------------------------

£300,000 purchase price

-------------------------------------------------------

£60,000 DEPOSIT

£ 9,000 STAMP DUTY

£ 895 Arrangement fee

£ 1000 SOLICITORS FEES & MOVING COSTS

-------------------------------------------------------

£78,950.00 TOTAL UPFRONT COSTS

-------------------------------------------------------

£ 2600 a month there after for 300 MONTHS

As I havent identified him to anyone by using his name. He is opn £45,000 before tax.

I cant concievably understand why anyone would lend or borrow such obscene amount of money. It give me a sicky throat just tallying up.

Edited by debt-free

Share this post


Link to post
Share on other sites

According to www.listentotaxman.com , £45k before tax works out at £2,685.30 per month, after tax and NI.

If the numbers above are accurate, thats very close to all his wage. Something certainly doesnt add up as that would leave him broke each month just paying a mortgage.

Edited by blackhole

Share this post


Link to post
Share on other sites
When you write the numbers down you see how stupid the whole market has become !!!

This is a much better way of writing some of those numbers:

- Purchase price: One third of a million pounds

- Actual cost after mortage payments over 25 years: TWO THIRDS OF A MILLION POUNDS

Edited by mikthe20

Share this post


Link to post
Share on other sites

I looked up flat a friend used to live in, was an ex council estate 2bdrm flat with no lift and about 6 flights of stairs, busy road outside, very noisy with communal walkways and thin walls, but a short distance from Putney rail station so it sold for £315,500 two months ago.

The reality of house prices is getting or got worse right at the end, it was only worth about 60K tops.

Share this post


Link to post
Share on other sites
£60,000 DEPOSIT

£ 9,000 STAMP DUTY

£ 895 Arrangement fee

£ 1000 SOLICITORS FEES & MOVING COSTS

-------------------------------------------------------

£78,950.00 TOTAL UPFRONT COSTS

-------------------------------------------------------

should be 70,895 for adding up above.

Houses costing upto 250K attract 1% stamp duty, it then jumps to 3% for houses above 250K.

He should offer 249K.

Share this post


Link to post
Share on other sites
Just about 70%~ of his take home to mortgage?!?!

Stupidity clearly has no limits :lol:

Am I missing something? £2600 a month has got to be nearly all of his take-home, if he's on 45K (before tax).

Share this post


Link to post
Share on other sites
Just about 70%~ of his take home to mortgage?!?!

Stupidity clearly has no limits :lol:

Surely it's more like 90% of his take home pay?

5.7 * salary.

Share this post


Link to post
Share on other sites
Come on guys, aa bit of perspective... a FTB is not going to be buying a 300k house, and even in this mad housing environment, I don't think they ever were.

No, they were buying the £150k 2up2dows, so the movers could buy the 300k houses.

Of course, I still doubt most FTBs will have it in their heads that they need to save a deposit and fees yet. I reckon at least 50% of the FTB market has been removed by the deposit requirement alone.

The FTB homes will shortly be £100k houses, and the £300k houses will be £200k.

Within 2 years I reckon :o

Afraid to say I know a few of people who until recently (thankfully) were considering flats at around the 350K mark using lie-to-buy mortgages, clubbing in together, parental help, etc.). They were so convinced that the market would only ever go up (they're too young to remember the last crash) that they were prepared to commit financial suicide...glad to say, since then they've decided to wait with the rest of us. Others weren't so wise, I fear.

Share this post


Link to post
Share on other sites
No, they were buying the £150k 2up2dows, so the movers could buy the 300k houses.

Plenty of parts of the country where £150k for a starter house is more like the post-crash target price, not the pre-crash inflated one.

Share this post


Link to post
Share on other sites
Come on guys, aa bit of perspective... a FTB is not going to be buying a 300k house, and even in this mad housing environment, I don't think they ever were.

No, they were buying the £150k 2up2dows, so the movers could buy the 300k houses.

Of course, I still doubt most FTBs will have it in their heads that they need to save a deposit and fees yet. I reckon at least 50% of the FTB market has been removed by the deposit requirement alone.

The FTB homes will shortly be £100k houses, and the £300k houses will be £200k.

Within 2 years I reckon :o

Hmmm... £150k properties in London are a bit like young, attractive, feminine lesbians. Nice to think about but I havent seen one in years!

A 20% deposit sounds excessive. I'd be suprised if he cant get a 95% LTV mortgage or at worst a 90% deposit.

Share this post


Link to post
Share on other sites
-------------------------------------------------------

£78,950.00 TOTAL UPFRONT COSTS

-------------------------------------------------------

That's more than I spent on my first London house in 1994 :o

Share this post


Link to post
Share on other sites
1st floor... no good to me. If I was forced to accept something like that I'd have to insist on being high enough for the jump to definitely kill me. Seriously, is London worth it?

The problem is that if you have a good job in london then its often worth living in a shiathole close to your work as the cost of commuting (to your pocket and your soul) can outweigh the benefits of the nicer place in commutersham. Living in a hole in shoreditch and walking to work can really seem more attractive than living in a victorian semi and travelling for 3 hours a day.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.