The "oh my god I need 100k deposit" thread

MatteH Oxford · 20 May 2013 at 17:41

div0 said:
In general, they can't.

House prices, like most things, are largely controlled by supply and demand. In London especially, the demand for housing is very high and this keeps the prices high.

Getting on the housing ladder anywhere isn't easy though and for most people the hardest part is saving a suitable deposit. I was lucky that my family was able to help out on that side of things, because even with a very good wage, most 'decent' places were outside of my reach. Without their help I'd just have had to set my goals slightly more realistically and either bought a smaller place, or moved somewhere less desirable.

I'd say it's more the supply and price of credit. Low rates & high salary multiples have increased house prices over the last 10-15 years.
My first mortgage rate was about 8% and was for around 3.5 times a single salary, the max' they would lend me was 4x. Now it's more like 4x joint! :eek:

Recent buyers are backed in to a corner, property prices are high compared to wages & rates can only really go up from here.

div0 · 20 May 2013 at 18:54

MatteH Oxford said:
I'd say it's more the supply and price of credit. Low rates & high salary multiples have increased house prices over the last 10-15 years.
My first mortgage rate was about 8% and was for around 3.5 times a single salary, the max' they would lend me was 4x. Now it's more like 4x joint!

Recent buyers are backed in to a corner, property prices are high compared to wages & rates can only really go up from here.

Cost/availability of credit just drives demand, so it's really the same thing.

Jokester · 20 May 2013 at 18:56

Demand won't have changed, just how much people were willing to pay was increased by the availability of cheap money.

HangTime · 20 May 2013 at 19:30

That's still a shift in the demand curve - demand is how many people are willing to buy at given price, not how many people are willing to buy at any price.

Jokester · 20 May 2013 at 19:36

HangTime said:
That's still a shift in the demand curve - demand is how many people are willing to buy at given price, not how many people are willing to buy at any price.

But that given price has been shifted to the right by relaxing of mortgage availability rules and lower interest rates.

NickK · 21 May 2013 at 22:57

Jokester said:
You can get mortgages with 10% deposits again, but the interest rates won't be the best.

350K with 10% LTV you're probably looking at ~£2000/month for 25 years. The same with 20% LTV is about 1600/month.

Teledude · 22 May 2013 at 09:17

We just brought at 300k

45k deposit and £1130/month

BombayMix · 22 May 2013 at 12:21

J0hnb0y said:
I have no idea how people born and raised in London that don't receive 100k bonuses can ever get on the property ladder.

Or they bought ages ago when it was much much cheaper, like me. Bought my new London flat with a 55% LTV, all due to the price inflation of my last place.

Gilly · 22 May 2013 at 12:45

Teledude said:
We just brought at 300k

45k deposit and £1130/month

Brought what? Where?

Teledude · 22 May 2013 at 13:57

Gilly said:
Brought what? Where?

4 bed detached in Kent

MatteH Oxford · 26 May 2013 at 07:33

BombayMix said:
Or they bought ages ago when it was much much cheaper, like me. Bought my new London flat with a 55% LTV, all due to the price inflation of my last place.

If prices didn't go up I expect the LTV would have been even lower. On monopoly board it only costs £340 to move from Old Kent Road to Mayfair.