Soldato
- Joined
- 19 Jan 2006
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- 4,531
Quoted from my "completion of account";
All a bit crazy, but hey - it's done now and I have a home of my own
Nationwide calls time on the Bank of Mum & Dad.
- Thread starter stockhausen
- Start date
Quoted from my "completion of account";
All a bit crazy, but hey - it's done now and I have a home of my own
fixed it for you. All rentals are expensive and overpricedI used to work with a guy who lived round the corner from me. He was about 20 years older than me though so owns a small 3 bed semi. He nearly **** a brick when I told him how much my rent was on a small 2 bed flat. He was so embarrassed he wouldnt even tell me how much (little) his mortgage was. So, this was a guy who was probably 2 levels senior to me, earning probably twice as much, paying probably a third of my rent on his mortgage. And you wonder why the <40s are screwed when it comes to the housing market
Had same.
People earning much more on lower mortgages. Its why things have to and will correct.
Otherwise there will be too many expensive houses for wages. Which means price falls. Just hope they are gradual. I haven't really looked too much at Japan. But if prices are falling does that mean no one buys?
Or do the house builders slow down as no one wants to buy?
Just to add a bit more bitterness
If I hadn't have gone to uni I could well have been on that house ladder and have been seeing some gains.
Unfortunately I did. Which is 5 year of no earnings and building up debt. Could have easily have been 5 years into owning plus.
University is a con if you end up in IT.
Very few degrees are worth anything.
Soldato
- Joined
- 19 Jan 2006
- Posts
- 4,531
Correct, local market.
Didn't realise the fees would be so high for local market, expected for open market for obvious reasons but seems punitive for residents.
Soldato
- Joined
- 19 Jan 2006
- Posts
- 4,531
It's so prohibitive, I'm just fortunate enough to be in a position that allowed me to purchase by myself. The vast majority of people here have to go in to a mortgage with a partner due to how prohibitive property prices and fees are.
Soldato
I'm not seeing a link from the OP. I'm not sure I totally understand what all this means. If my parents want to gift me money towards a deposit does this mean Nationwide won't give me a mortgage? Well they can go suck a **** as far as I'm concerned! How exactly is anyone in the SE supposed to buy their first home?This makes for interesting reading; https://www.legalandgeneral.com/lan...t/reports/bank-of-mum-and-dad-report-2017.pdf In the last 5 years, over 60% of FTBs under 35 received help from their parents... The bank of Mum and Dad is lending so much it's the equivalent of the UK's 9th largest mortgage lender
I don't know what Nationwide are thinking...
Maybe they have data showing that those people who received help from their parents are more likely to default on their mortgages? The extra deposit may have resulted in them getting a mortgage that wasn't affordable? I don't know but banks rarely make decisions without thinking. There must be some link between it that has resulted in them taking this decision.
It makes logical sense that FTBs who are able to save deposits on their own are probably a lower risk.
Your report states that FTB in the SE are the least likely to have help from friends and family though, too.
Quoted from my "completion of account";
All a bit crazy, but hey - it's done now and I have a home of my own
What on earth actually is document duty? Your legal feels look pretty similar to the UK, but no idea what this document duty is. Is that some sort of tax the Guernsey government have? Do you have a form of stamp duty? - or is this probably it?
It is for many jobs really but is used as a CV filter to narrow down candidates.
What the ****?
That seems like a bizarre thing to enforce... As if getting on the property ladder isn't already hard enough for this generation?
Bank of Mum and Dad seems like ‘help’ but it bakes in inequality and keeps house prices high.
Soldato
I was thinking that. Conveyancing fees down here are maybe £2k.
- Joined
- 30 Jul 2006
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- 12,129
It does appear (quite reasonably) that Nationwide are doing this in order to ensure that people who may have "scraped" together a deposit, with the help of their parents, are actually capable of saving and thus keeping up their repayments. In the current economic climate with the risk of many job loses I guess that that makes complete sense.
I am less convinced by the Government's apparent enthusiasm for negative interest rate to encourage people to Spend, Spend, Spend today because you needn't care about tomorrow!
Caporegime
- Joined
- 21 Jun 2006
- Posts
- 38,372
There are options available.
Second job, cut down on expenditure.
You can buy a flat in Paisley for £20k.
That at least gets you on the ladder. Let's you build up equity and savings to then move up the ladder when you can.
If you want something badly enough you can make it happen.
Or they see a problem with those who are gifted large amounts of money not having the financial responsibility to own a home and the bank of mum and dad is no longer bailing them out?
Don
Do banks still check debtors ability to make their monthly payments or has that gone out the window or something?
Caporegime
Just move to Paisley, get a second job and live on beans on toast, try not to worry too much about the low-level drug dealers and convicted sex offenders you have as neighbours.
It's the potential lack of financial responsibility that I think Nationwide is trying to mitigate. Earning £30K per year is great on paper but if the person / couple are spending 75% of that on useless junk, the mortgage may not get paid.
Couples saving for their house deposit on their own might seem to have more "skin in the game", versus just being handed a wodge of cash from Mum and Dad.
But what about those that need to borrow/be gifted money from their parents simply to get on the ladder. E.g. in non-descript commuter areas such as (picking randomly here) such as West Berkshire, Chelmsford, Tunbridge Wells, Sussex (actually I could go on) average FTB deposits are all around or above £50k; https://www.which.co.uk/news/2019/0...ch-mortgage-deposit-do-you-need-in-your-area/
I agree with your sentiment but if other banks follow suit this will make buying a first-home anywhere south of Northamptonshire completely impossible for anyone. Maybe we shoudl be applauding it, as it might drive down prices if we forget all the BTL and investors that will reap the rental rewards
I wouldn't even live in Paisley if someone paid me 20k.