notthereyet Posted January 5, 2009 Share Posted January 5, 2009 http://news.bbc.co.uk/1/hi/business/7811357.stm More lenders require a deposit, going back to basic lending again. We will be better off in the long run. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 5, 2009 Share Posted January 5, 2009 http://news.bbc.co.uk/1/hi/business/7811357.stmMore lenders require a deposit, going back to basic lending again. We will be better off in the long run. clearly they need more incentives...bonuses to make a comeback? Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted January 5, 2009 Share Posted January 5, 2009 MORTGAGE DEPOSITS NEEDED: FEBRUARY 08 VS. JANUARY 090% deposit - down from 182 to 10 5% - down from 1,023 to 11 10% - down from 1,197 to 148 15% - down from 245 to 227 20% - down from 243 to 158 25% - down from 669 to 447 40% - up from 24 to 341 So this time last year the average (mode) mortgage product required a 10% deposit (2nd place - 5% deposit) but now the average mortgage requires a 25% deposit (2nd most popular 40% deposit). I'd say the mortgage market is back to normal. Quote Link to comment Share on other sites More sharing options...
redwing Posted January 5, 2009 Share Posted January 5, 2009 MORTGAGE DEPOSITS NEEDED: FEBRUARY 08 VS. JANUARY 09 Number of products available 0% deposit - down from 182 to 10 5% - down from 1,023 to 11 10% - down from 1,197 to 148 15% - down from 245 to 227 20% - down from 243 to 158 25% - down from 669 to 447 40% - up from 24 to 341 Credit crunch is 18months old and still getting crunchier. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted January 5, 2009 Share Posted January 5, 2009 So this time last year the average (mode) mortgage product required a 10% deposit (2nd place - 5% deposit) but now the average mortgage requires a 25% deposit (2nd most popular 40% deposit).I'd say the mortgage market is back to normal. This is a disgrace. Where is the -25% deposit mortgage gone? I thought lending levels were back to '07. Quote Link to comment Share on other sites More sharing options...
New_Renter Posted January 5, 2009 Share Posted January 5, 2009 this will cause bigger drops as now even those of us who will have a 10% deposit in the next few months will now not be able to buy once again Quote Link to comment Share on other sites More sharing options...
redwing Posted January 5, 2009 Share Posted January 5, 2009 this will cause bigger drops as now even those of us who will have a 10% deposit in the next few months will now not be able to buy once again That's right. The banks are doing FTBs a service (for once) by not letting them buy a house when there are still 15-30% of price falls still to come. It's just a shame they weren't this concerned about customers overborrowing between 1995 and 2007. Quote Link to comment Share on other sites More sharing options...
Guest mattsta1964 Posted January 5, 2009 Share Posted January 5, 2009 http://news.bbc.co.uk/1/hi/business/7811357.stmMore lenders require a deposit, going back to basic lending again. We will be better off in the long run. It'll only be better if it's possible to save and quite frankly, that is very difficult for a lot of people. What incentive is there to save when the banks are offering such pathetic returns on the investment? I earn above the national average salary and I find it very difficult to save on a single income. The whole system is completely screwed. I was having a chat with a colleague here at work this morning and we both agreed that it simply ain't worth working for a living anymore. You can't save. It's pointless paying into a pension and yet the government is bringing forth legislation to force people to pay into a pension scheme compulsarily despite the fact that you might as well burn the money. We might as well all fekk of and sell ice cream on a beach somewhere or do bar work in Thailand, anything other than staying here. If I didn't have my modest mortgage, I would have donned my rucksack and fekked off out of this cesspit of a country years ago. I'm waiting for my spousal visa to come through so I can get the hell out of here. I am absolutely screaming to get out of this debt dystopia I very nearly made the Great Escape once before but a motorcycle accident in France forced me to return to the UK. I swear, I would never have returned to the UK if that accident hadn't happened. I wasn't jumping barbed wire in a German uniform and I'm not Steve McQueen by the way! Quote Link to comment Share on other sites More sharing options...
New_Renter Posted January 5, 2009 Share Posted January 5, 2009 yeah i agree its good to know the banks are making some better choices for once but it just fees like whatever i do they move the goal posts i woudl have had a good 10% deposit for a place in July now i might need to get more oh and by the way that 10% was if i got the house alot cheaper than the asking price 50K cheaper Quote Link to comment Share on other sites More sharing options...
Moo Posted January 5, 2009 Share Posted January 5, 2009 That's right. The banks are doing FTBs a service (for once) by not letting them buy a house when there are still 15-30% of price falls still to come. It's just a shame they weren't this concerned about customers overborrowing between 1995 and 2007. My thoughts entirely. Must admit, my thoughts on Halifax and Nationwide stopping their price predictions is because, quite simply, if they were honest they wouldn't be calling them predictions, they would be calling them absolute statements of fact. In my opinion, the lenders know exactly how much prices have to fall by in order to see a return to "normal" transaction levels post-securitisation, and are simply keeping shtum to save having to explain it. It wouldn't be a nice explanation to hear. Well, not if you bought the bubble anyway. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 5, 2009 Share Posted January 5, 2009 Most people can't afford to save a deposit and you can't borrow either. Hmmmm I wonder what affect this will have on house prices. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted January 5, 2009 Share Posted January 5, 2009 That's right. The banks are doing FTBs a service (for once) by not letting them buy a house when there are still 15-30% of price falls still to come. It's just a shame they weren't this concerned about customers overborrowing between 1995 and 2007. I'd say overborrowing between 2000 - 2009 Post 1994 and pre 2000 I would say was fair cost. Even cheap in 95. Quote Link to comment Share on other sites More sharing options...
Selling up Posted January 5, 2009 Share Posted January 5, 2009 So this time last year the average (mode) mortgage product required a 10% deposit "Mode", eh? Nice to see a little statistical sophistication. Quote Link to comment Share on other sites More sharing options...
New_Renter Posted January 5, 2009 Share Posted January 5, 2009 i think the next 6 months are going to be very interesting with regards to prices as sellers now start to realise that they will not sell as there is no money for anyone to buy. my offer of 100K for a 160K house does not seem to silly now. Quote Link to comment Share on other sites More sharing options...
notthereyet Posted January 5, 2009 Author Share Posted January 5, 2009 Most people can't afford to save a deposit and you can't borrow either.Hmmmm I wonder what affect this will have on house prices. People used to have to save for a deposit,its only because we have got out of the habit that some will find it tough. Quote Link to comment Share on other sites More sharing options...
evictee Posted January 5, 2009 Share Posted January 5, 2009 i think the next 6 months are going to be very interesting with regards to prices as sellers now start to realise that they will not sell as there is no money for anyone to buy.my offer of 100K for a 160K house does not seem to silly now. These kinds of minimum deposits must be killing the whole market stone dead by now surely. First time buyers must be virtually non existent of course, but are there even any ladder-mover-uppers left at these rates? Assuming they'd be looking for at least one extra bedroom at, what, a 20% premium on their current property, then second- and third-time buyers would have to have had over 40% equity in their current place this time last year in order to be able to raise a 25% deposit on the new place from it now. And that's before costs. There can't be many of them around surely? Quote Link to comment Share on other sites More sharing options...
The Mad Rapper Posted January 5, 2009 Share Posted January 5, 2009 People used to have to save for a deposit,its only because we have got out of the habit that some will find it tough. I love saving TBH. I work my balls off doing tons of OT every month so I can save £1250 - £1500. I know it's silly but I love seeing my accounts increase every month, it makes me feel a sense of 'worth', even though that's only a psychological feeling. Quote Link to comment Share on other sites More sharing options...
New_Renter Posted January 5, 2009 Share Posted January 5, 2009 yeah i save 1K each month and its a great feeling knowing that i am getting closer each month to my target, the only annoying this is the tartget keeps getting further away every month Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted January 5, 2009 Share Posted January 5, 2009 yeah i save 1K each month and its a great feeling knowing that i am getting closer each month to my target, the only annoying this is the tartget keeps getting further away every month How do you work that out? That was true up to 2007 but now the target is getting closer at a rapid pace. Don't pay attention to mortgage lending requirements. If you're a FTB, the worse the mortgage market is, the better it is for you because prices will fall faster. Quote Link to comment Share on other sites More sharing options...
grizzly bear Posted January 5, 2009 Share Posted January 5, 2009 These kinds of minimum deposits must be killing the whole market stone dead by now surely. First time buyers must be virtually non existent of course, but are there even any ladder-mover-uppers left at these rates? Assuming they'd be looking for at least one extra bedroom at, what, a 20% premium on their current property, then second- and third-time buyers would have to have had over 40% equity in their current place this time last year in order to be able to raise a 25% deposit on the new place from it now. And that's before costs. There can't be many of them around surely? Exactly what I was thinking - that to move up you would need around 50% equity in your current house based on current valuations - which probably meant 65% last summer! EG Current house £200k, mortgage £100k. New house say £300k, need 25% deposit & costs = approx £90k. Plus of course mortgage of around £200k. My mate at work was telling me about his friend who with his wife has joint income of £120k yet was told by HSBC last week can only borrow £200k. Quote Link to comment Share on other sites More sharing options...
sikejsudjek Posted January 5, 2009 Share Posted January 5, 2009 These kinds of minimum deposits must be killing the whole market stone dead by now surely. First time buyers must be virtually non existent of course, but are there even any ladder-mover-uppers left at these rates? Assuming they'd be looking for at least one extra bedroom at, what, a 20% premium on their current property, then second- and third-time buyers would have to have had over 40% equity in their current place this time last year in order to be able to raise a 25% deposit on the new place from it now. And that's before costs. There can't be many of them around surely? As prices continue to fall equity will fall too. Negative equity will increase. Negative feedback loop and all that... Quote Link to comment Share on other sites More sharing options...
HAMISH_MCTAVISH Posted January 5, 2009 Share Posted January 5, 2009 How do you work that out? That was true up to 2007 but now the target is getting closer at a rapid pace. Don't pay attention to mortgage lending requirements. If you're a FTB, the worse the mortgage market is, the better it is for you because prices will fall faster. I see what you're saying, but it's simply not true for many people. Mortgage rationing, as now exists, quite simply locks a lot of deserving people out of the market. The people with the lowest deposits, the least ability to save, and potentially a few minor blemishes on their credit, are also most likely to be the poorest and/or youngest in society. They will have zero ability to buy a home until mortgage rationing ends, no matter what the price. And as rationing eases, others with higher incomes/deposits will of course be allowed to buy first, thus pushing up pricing, and further pushing away the targets for many FTB's. There are a lot of young people for whom saving is very difficult, even more so now in a recession. For those people, a £5k deposit on a £100k flat may be achievable, after many years of saving. A £20k deposit on a £70k flat will likely never be achievable. Quote Link to comment Share on other sites More sharing options...
New_Renter Posted January 5, 2009 Share Posted January 5, 2009 How do you work that out? That was true up to 2007 but now the target is getting closer at a rapid pace. Don't pay attention to mortgage lending requirements. If you're a FTB, the worse the mortgage market is, the better it is for you because prices will fall faster. yeah they are dropping faster but if you cannot buy at the droped price as the deposit is so high then the boat will pass. i save a good amount each month i think and by july ill have 12K which will be 10K deposit, 1K Solicitor & 1K mortgage fee, no stamp duty as yet. so now that you need around 20-40% the boat will sail pass once again Quote Link to comment Share on other sites More sharing options...
allfiredup Posted January 5, 2009 Share Posted January 5, 2009 Needing no deposit must have been one of the biggest causes of HPI. In the old days only prudent people who saved a deposit could afford to buy, and for FTB that would have been a flat/ modest terrece. Then comes along the "no deposit" mortgage and all the wreckless people that had never even used the word "save" could buy, and these are the same people that are obbssesed with labels/credit cards ect..... so then of course the house became their "designer clothes" so they wanted the biggest and best they could possibly get. and so it spiralled. I think we need to go back to big deposits, and FTB accepting that a small house is the first step. One friend of mine is 36, decent wage, no savings/equity but cant understand why he cant afford a 3 bed semi.......! (too old for a flat of course!) Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted January 5, 2009 Share Posted January 5, 2009 (edited) I see what you're saying, but it's simply not true for many people.Mortgage rationing, as now exists, quite simply locks a lot of deserving people out of the market. The people with the lowest deposits, the least ability to save, and potentially a few minor blemishes on their credit, are also most likely to be the poorest and/or youngest in society. They will have zero ability to buy a home until mortgage rationing ends, no matter what the price. And as rationing eases, others with higher incomes/deposits will of course be allowed to buy first, thus pushing up pricing, and further pushing away the targets for many FTB's. There are a lot of young people for whom saving is very difficult, even more so now in a recession. For those people, a £5k deposit on a £100k flat may be achievable, after many years of saving. A £20k deposit on a £70k flat will likely never be achievable. It's true for everyone. It is in everyone's interest to be locked out of an overvalued market. Do you want to sign away an unnecessarily high proportion of your future income in order to have the warm, fuzzy feeling of being a homeowner a couple of years prematurely? I certainly don't. Just remember - if it's tough for you then it's just as tough for the next guy, therefore prices have to correct to a level at which people at your position on the wealth distribution curve can afford a comensurate property. Bemoaning the inability to take out a mortgage right now is verging on moronic. Edited January 5, 2009 by thecrashingisles Quote Link to comment Share on other sites More sharing options...
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