House prices..
- Thread starter fendi
- Start date
Soldato
If they succeed it will only come back on us again in a few years. It will be far worse, this is a monumental debt double. Soaring prices led to banks lending more and more, the very reason we are in this mess at the moment.
See from this Brown is desperate to get back to 2007 poor lending practices.
http://news.bbc.co.uk/1/hi/uk_politics/7667284.stm
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Associate
"House prices to fall a further 36pc"
http://www.telegraph.co.uk/finance/economics/3531738/House-prices-to-fall-a-further-36pc.html
http://www.telegraph.co.uk/finance/economics/3531738/House-prices-to-fall-a-further-36pc.html
I admitted I didn't think the prices would crash like this 
, just hope it carrys on for another 12months. All hands on deck in January to try and get a 5% deposit.. The prices have just fallen and fallen. There are now hundreds of 2 bed bed houses around the 100k mark, where 12 months ago there was maybe a couple.
Another 20% over the next 12-24 months would be brilliant.
, just hope it carrys on for another 12months. All hands on deck in January to try and get a 5% deposit.. The prices have just fallen and fallen. There are now hundreds of 2 bed bed houses around the 100k mark, where 12 months ago there was maybe a couple.Another 20% over the next 12-24 months would be brilliant.
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Soldato
I've still held off, this is working out lovely for me. Glad I didn't buy one 4-5 months ago now...
I knew they had to fall, but the rate, and the prospects for that rate to continue, are both quite 'good' (for me, as someone with no debt and who wouldn't mind buying at some point) and also worrying as it's not just the housing market that is having difficulties but everything else as well,
But hey, my job is fairly secure for the moment, and if the kind of houses I want drop another 30-40k I'll be easily able to afford one, so just gonna keep on saving as much as I can each month and see what I can get in 6-12 months, and what the future looks like at that point...
But hey, my job is fairly secure for the moment, and if the kind of houses I want drop another 30-40k I'll be easily able to afford one, so just gonna keep on saving as much as I can each month and see what I can get in 6-12 months, and what the future looks like at that point...
Soldato
Makes me glad I bought this time last year with a 30% discount! Although the market is good in the sense that when I move in 2 years a 4 bed house will be easily affordable.
House prices are crashing but it doesn't mean you vulture boys are going to get a half decent mortgage.
The days of mortage lenders bending over for first time buyers who can wave 5% deposit at them are well and truly over. Mortage approvals have crashed because easy borrowing is over.
The days of mortage lenders bending over for first time buyers who can wave 5% deposit at them are well and truly over. Mortage approvals have crashed because easy borrowing is over.
Yes they are harder, but still plenty on moneysupermarket and other sites. As long as you have over 5% and are only asking for 4.5% X your pay.
As AcidHell says it's perfectly possible to get a mortgage on 95% LTV (I should be in the position to 'just' need 85-90 when/if I buy though), as long as you're not asking for silly multiples of your income.
And that is why both mortgage approvals and the housing market are crashing, rather than being able to get 10x your income on 100% LTV, the banks are back to sensible-ish 4-4.5x income and needing at least some deposit, problem is house prices are still comfortably above that level, hence the lack of sales (think it averaged 6 sales per estate agent last month) and the sales that do go through are getting cheaper and cheaper, and long may that continue imo
And that is why both mortgage approvals and the housing market are crashing, rather than being able to get 10x your income on 100% LTV, the banks are back to sensible-ish 4-4.5x income and needing at least some deposit, problem is house prices are still comfortably above that level, hence the lack of sales (think it averaged 6 sales per estate agent last month) and the sales that do go through are getting cheaper and cheaper, and long may that continue imo
which is still pretty good. For the uk that is still a cheap interest rate if you look at historical data.
But the important bit is can you afford it at that interest rate, if yes it doesn't matter.
You have to remember the days of 4.2%, 100% and 10x salary are gone and wont be back anytime soon.
The house prices here were always too high for me to get a mortgage, even if it was a 10x salary 100% loan....the most I could have managed with that is a studio apartment and I'd struggle to make the monthly payments while paying bills\shopping etc.
There really aren't, not compared to what has been about. The number of mortgage products available is a 1/3rd of what it once was (15000 down to 5000 (source)), and most of the casualties have been in the high LTV market.
For a better insight...
http://news.bbc.co.uk/1/hi/business/7654641.stm
So no, there are not 'plenty' of mortgages about for 95% LTV, in fact there's virtually nothing about at that level of lending.
All those people who wanted the market to crash because it will make houses more available to them really didn't understand what they were wishing for...
Associate
My mum is intending to possibly invest into a house with a close friend of hers but I just wanted some advice regarding whether this is feasible in the current market.
Bit more info: The house (haven't seen it myself) is a semi-detached with a view of a field from the back. It is badly in need of renovation and will need electrics/plumbing/papering/new kitchen etc. which will cost around the ~20K mark IIRC. The owner passed away and the relative to whom it was left resides in the USA so they just want it sold.
Considering all of the above the estate agents will let it go at 93K. (i.e. VERY cheap/good opportunity).
Now my mum has always been wise with investments in the past and is sure that after spending the necessary money needed to renovate that all things considered including renting the house to pay a 'interest only' mortgage it will be a good investment.
She's actually going into this with a friend that does so they'd be splitting it half way but I'm not sure what she is doing is the right thing? Money isn't a problem (considering the type of mortgage she intends to get above) so it won't all end in ruins per se, but after reading for example the newspaper article posted a few posts up I'm not so sure whether this is a good idea
Are house prices certain to fall as dramatically as predicted in your opinions? Would now be a bad time to buy said property in need of renovation as an investment? I mean wouldn't it be better to wait for the market to bottom out and wait for another such property going at a steal of a price to come up (I mean, theres always going to be these kinds of properties going ?!).
Thanks!
Bit more info: The house (haven't seen it myself) is a semi-detached with a view of a field from the back. It is badly in need of renovation and will need electrics/plumbing/papering/new kitchen etc. which will cost around the ~20K mark IIRC. The owner passed away and the relative to whom it was left resides in the USA so they just want it sold.
Considering all of the above the estate agents will let it go at 93K. (i.e. VERY cheap/good opportunity).
Now my mum has always been wise with investments in the past and is sure that after spending the necessary money needed to renovate that all things considered including renting the house to pay a 'interest only' mortgage it will be a good investment.
She's actually going into this with a friend that does so they'd be splitting it half way but I'm not sure what she is doing is the right thing? Money isn't a problem (considering the type of mortgage she intends to get above) so it won't all end in ruins per se, but after reading for example the newspaper article posted a few posts up I'm not so sure whether this is a good idea
Are house prices certain to fall as dramatically as predicted in your opinions? Would now be a bad time to buy said property in need of renovation as an investment? I mean wouldn't it be better to wait for the market to bottom out and wait for another such property going at a steal of a price to come up (I mean, theres always going to be these kinds of properties going ?!).
Thanks!
My mum is intending to possibly invest into a house with a close friend of hers but I just wanted some advice regarding whether this is feasible in the current market.
Bit more info: The house (haven't seen it myself) is a semi-detached with a view of a field from the back. It is badly in need of renovation and will need electrics/plumbing/papering/new kitchen etc. which will cost around the ~20K mark IIRC. The owner passed away and the relative to whom it was left resides in the USA so they just want it sold.
Considering all of the above the estate agents will let it go at 93K. (i.e. VERY cheap/good opportunity).
Now my mum has always been wise with investments in the past and is sure that after spending the necessary money needed to renovate that all things considered including renting the house to pay a 'interest only' mortgage it will be a good investment.
She's actually going into this with a friend that does so they'd be splitting it half way but I'm not sure what she is doing is the right thing? Money isn't a problem (considering the type of mortgage she intends to get above) so it won't all end in ruins per se, but after reading for example the newspaper article posted a few posts up I'm not so sure whether this is a good idea
Are house prices certain to fall as dramatically as predicted in your opinions? Would now be a bad time to buy said property in need of renovation as an investment? I mean wouldn't it be better to wait for the market to bottom out and wait for another such property going at a steal of a price to come up (I mean, theres always going to be these kinds of properties going ?!).
Thanks!
Now would be a bad time to buy if you're hoping to make money. If you want to buy a house to make into a home, that's a different matter provided you can afford the mortgage.
Soldato
At the end of the day, nobody knows what is going to happen so in this situation the wise man stays cautious
So there are 'only' 60 different mortgage products on the market for 95% LTV, but on the other hand if anyone has a 5% deposit and enough income to afford a place then they have a choice of 1 in 60, not exactly the end of the world, less available yes, but then you only need 1 mortgage, not 100...
At the moment the houses aren't more available no, but 2, 3 maybe even 4/5 years down the line, once the house prices have regained some semblance of sanity, they WILL be more available to first time buyers, assuming said buyers have at minimum a 5% deposit, preferably 10-15%...
60 down from 860 is a hell of a drop, especially as the other criteria for those remaining 60 (eg credit rating, income levels, multipliers) is likely to be on the much tighter and more conservative end of the scale.
As for being more available, only if the credit restrictions are relaxed. If the credit restrictions are relaxed significantly, then they'll become more available, but that'll start prices rising rapidly again...
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