Soldato
According to the FT it was about 54% without mortgage back in 2020. It’s probably more than 60% now
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Mortgage Rate Rises
- Thread starter glenimp617
- Start date
I remember reading about a year ago Lloyd's would be buying properties to become the Uk's largest private landlord.
So I guess any defaults where they own the mortgage and those repossessions won't make it to market.
Which doesn't tell you if those properties were originally purchased without a mortgage or if the owners are in a position to buy another property without one.
Soldato
What it does tell us is the majority of the market are not impacted by interest rates. It must be somewhat aligned with purchases otherwise it would trend towards cash or mortgage. Arguably it is trending towards cash as that number is increasing.
Cash buyers account for around 35% of the market and includes people selling one property to buy another without a mortgage (according to the FT). How many have the cash to buy additional properties?
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Soldato
Then that suggests people are paying off mortgages faster than people are buying properties.
Soldato
I stand corrected... I'm hoping never to personally suffer it
Was it always a 30 year mortgage or did you extend the term as 30yr mortgages would have been unusual in 1982.... Times have changed as you say. 30yr mortgages and longer are probably a lot more common now
Unmortgaged owner occupation has increased only modestly over the last few years. How many have the cash to buy additional properties?
Soldato
If 35% are buying with cash and the rate of unmortaged properties is increasing then people are clearly paying them off faster than people are buying properties. Otherwise that unmortaged rate would be decreasing.
Its not 35%, its 25%.
Soldato
I believe what you described though is how it operates in America.
Where as in the UK they have to act responsibly (which now means they send to auction I believe so they can tick that box), I believe in America if you are foreclosed thats it, the end as far as your interests are concerned, but I believe they can also still chase you for debt if they cannot make enough to cover your outstanding.
Your right, its not nice in the UK even if you are still semi protected. Lots of fees (just check your mortgage offer for the amount they charge for these things), court costs etc. You can and likely would still lose a significant chunk of equity should you end up repossessed. Almost always best to sell yourself before it gets to that point if possible,
which can be why house prices drop quickly in bad times. Only those really needing to buy or sell so the market is stagnant.
Soldato
I’m quoting Surveyor’s number. However it does appear to be correct from a quick google. It has risen quite a bit over the past few years.
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'In Q3 2020, 24% of homes in Great Britain were bought with cash, slightly down from 26% during the same period last year. And this comes even though more people own their home outright than ever before. According to the English Housing Survey, 54% of homeowners in England were mortgage-free in 2019, up from 46% in 2009.'
Percentages of cash buyers has been falling for years according to the same source.
To get back on the topic of cash buyers "hoovering up" repossessions, how many have the cash to buy additional properties?
Soldato
I’ll leave it to Surveyor to comment as it’s his number. However the more recent numbers have jumped up a bit as clearly people have swapped properties in the city for others outside to be mortgage free is my guess.'In Q3 2020, 24% of homes in Great Britain were bought with cash, slightly down from 26% during the same period last year. And this comes even though more people own their home outright than ever before. According to the English Housing Survey, 54% of homeowners in England were mortgage-free in 2019, up from 46% in 2009.'
Percentages of cash buyers has been falling for years according to the same source.
Amazing really.
Really shows the plebs how much money is sloshing around.
Over a third of properties are bought with cash.
I agree that its time homes are not seen as an investment. But would be difficult
But you miss the key, this figure includes people selling a house and buying another. So they dont have all that cash in the bank, they buy the new house funded with the sale of their current house. The actual figure of people who have cash in the bank and could buy a 2nd house outright is far lower.
Soldato
No it was always a twenty five year term but as prices increased we started a new twenty five years on moving. The last one was 15 years term as I took it out aged fifty. We paid it off in ten ultimately.
Just shows you that landlordism rules the roost here in the UK. If you were to get stats on how many individuals were purchasing with cash compared to with a mortgage, I'm sure that number would be lower.
Permabanned
With all that cash sloshing around, I guess their is not much chance of a property downturn anytime soon.