How can house prices start going up when the only people who can turn the housing market around are First Time Buyers, and it is impossible for them to get a Mortgage! - HotUKDeals
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How can house prices start going up when the only people who can turn the housing market around are First Time Buyers, and it is impossible for them to get a Mortgage!

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I have been saving for 3 years now. I have 10% of a £150,000 house. I am a fist time buyer, i want to buy, yet no lender will offer me money on a new home unless i have %20! No i believe not many 2… Read More
PennysMakePounds Avatar
8y, 1m agoPosted 8 years, 1 month ago
I have been saving for 3 years now. I have 10% of a £150,000 house. I am a fist time buyer, i want to buy, yet no lender will offer me money on a new home unless i have %20!

No i believe not many 20 year olds have saved £15k to get a house, and still not be able to get a mortgage, so what the hell the rest of the first time buyers that have 0 savings or very little are going to do!

Sorry if i am ranting, but this has hit a nerve with me!
PennysMakePounds Avatar
8y, 1m agoPosted 8 years, 1 month ago
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#1
Reported to be moved to "The Misc".

Economics lesson to follow...
#2
I know how you feel we just had to raid the savings of £15000 for daughter to top up her deposit to |£30000 and I know I will never get it back but what do you do in this situation-not much!:x
#3
mikebike
I know how you feel we just had to raid the savings of £15000 for daughter to top up her deposit to |£30000 and I know I will never get it back but what do you do in this situation-not much!:x


Rent.
#4
Rent is not an option for me. Why would i want to effectively give my hard earned money away when i should be investing it into a property...
#5
Been living at your folks to save that much, OP?
#6
thesaint
Reported to be moved to "The Misc".

Economics lesson to follow...


+1
#7
their are 10% mortgages available
#8
thesaint
Rent.


Can you imagine what the wife would say:? I am under the thumb and proud of it:oops: I mean what choice do I have with two daughters and the wife:|
#9
why dont u do part rent part buy u only need to find half of the money as u own half the house thats what i did my half i bought was £90.000 and its already gone up to £95000

i did need £15 % to get the rates down but there are comapnys that will do part rent part buy with 10% deposit :)
#10
[email protected]
Been living at your folks to save that much, OP?


Having been living at my brother's house for a minimal cost :thumbsup:
#11
i feel sorry for youngsters today i bought my 1st flat 12 years ago 30k 100% morgage so luckily i got in just in time i dont earn loads either 16k prob around 12k then ,how can young people on just reasonable wages possibly get on the property ladder ?

i couldnt have afforded the house im in now £125k but i had to put 35k deposit done(profit from flat) and now have a wife to help out with morgage

what happened to the government promisses of helping 1st time buyers out ?
#12
Well im just greedy my mum and dad are giving me money if the housing market doesnt get any better.
#13
PennysMakePounds
Rent is not an option for me. Why would i want to effectively give my hard earned money away when i should be investing it into a property...


Why should you be investing in property?
#14
casparwhite
their are 10% mortgages available


Not on New Builds.

I want a New Build because you can get double the size of a house for same price as what some one is asking for a tatty 2 bedroomed squat.
#15
i'm in the same situation, it rubbish!!

yeah i can get a mortgage - but £900 a month and tied in for 5 years, unless i want to incure a massive penatly for leaving early!

Rubbish!!
#16
PennysMakePounds
Having been living at my brother's house for a minimal cost :thumbsup:


Fair enough. My advice is to just wait. I bought my first place at 18 and 2 months - horrible place in a deprived area. Sacrifice you might have to make...

At 20 you shouldn't expect an average priced house - if you can get one then great.

You could get a £10k loan if you really felt that now was a good time to buy...
#17
Maybe because all those MPs are buying their 1st houses now, after all the can't claim expenses like this anymore
#18
rellis3
i'm in the same situation, it rubbish!!

yeah i can get a mortgage - but £900 a month and tied in for 5 years, unless i want to incure a massive penatly for leaving early!

Rubbish!!


My mortgage was nearly that until the rate drop. Plus council tax/ bills/ repairs/ insurances... Owning a house isn't just rent vs mortgage payments - it's crippling!
#19
PennysMakePounds
Not on New Builds.

I want a New Build because you can get double the size of a house for same price as what some one is asking for a tatty 2 bedroomed squat.


thats not true i viewed 4 new builds and they were all tiny and not made in the same way all plastered board and cut corners compared to houses built 5 years
#20
PennysMakePounds
Not on New Builds.

I want a New Build because you can get double the size of a house for same price as what some one is asking for a tatty 2 bedroomed squat.


Look at shared equity schemes...its alot better than shared ownership...as there is no rent to pay on top of the mortgage
#21
thesaint
Why should you be investing in property?


Its imo the safest place to put your money for the long run. Yes people maybe in negative equity who bought in 2008 but if they stay in their house long enough it will go back up.
#22
I'm scared to even look at moving home, back when we bought our house we only had to put up 5% deposit on a 26k house....then again with this one 3 years ago.

I could never save up 20% now with having 2 children and I don't think there will be much equity in the hosue to sell to move anyhow!

Well done on saving 10% by the way OP....could you not buy into a new housing development? They often do no deposit and other schemes for 1st time buyers
#23
PennysMakePounds
Not on New Builds.

I want a New Build because you can get double the size of a house for same price as what some one is asking for a tatty 2 bedroomed squat.


Its the complete opposite here, i can pick up an older house for cheaper but its the ew builds that are offering the 10% deposite rather than the 20%.:x
#24
Abz
Look at shared equity schemes...its alot better than shared ownership...as there is no rent to pay on top of the mortgage


I have looked into it. After 10 years or when ever you sell, you have to pay them back their % in what the house is worth then, not at the % you bought it for.

Also, anything that sounds too good to be true...
#25
PennysMakePounds
Not on New Builds.

I want a New Build because you can get double the size of a house for same price as what some one is asking for a tatty 2 bedroomed squat.


are you sure? a simple search comes up with a few companies offering 10% mortgage and a rate of 5.5 on new builds

http://www.propertyfinder.com/doc/features/top-ten-newbuild-deals.htm
#26
PennysMakePounds
I have looked into it. After 10 years or when ever you sell, you have to pay them back their % in what the house is worth then, not at the % you bought it for.

Also, anything that sounds too good to be true...


well not 100% true.

I am looking into getting a new build on shared equity scheme and the way to do it, is to set up and standing order from day 1 and therefore you will pay the % of the value of the house and it doesnt matter if the value goes up and they have already done the calculation. Or all you will need to do is after 10 years re-mortgage the property and pay it of that way.

Like some-one mentioned before how badly do you want the house??
#27
PennysMakePounds
I have looked into it. After 10 years or when ever you sell, you have to pay them back their % in what the house is worth then, not at the % you bought it for.

Also, anything that sounds too good to be true...


do u not have part rent part buy schemes were u are i have just bought one throught this scheme i got a 2 bed end terranced house 4 years old and only had to pay £90000 15% deposit with nationwide and when u wana move u just sell ur half and what its worth when u sell u dont have to pay the council a bean my morgauge is £499 and my rent is £260 so totla £760 a month which is cheaper than the rental market and im on the property ladder and whern i sell the profit on my half ill put towards buy ing a another house in full :thumbsup:
#28
PennysMakePounds
Its imo the safest place to put your money for the long run. Yes people maybe in negative equity who bought in 2008 but if they stay in their house long enough it will go back up.


So wait until they are affordable if it's for the "long run".
If it's an investment, then you don't need a house.
#29
Come and move to wales! I have, from Essex.

There is lots of building of new houses and in a place called Loughor which I have passed they houses are lovely but are not selling and they are lowering the prices all of the time.

Would help if you had a job that you could do from home or pick up easily in the area.
#30
Well Done for saving that much! Have you thought about moving to other parts of the place where you live or to elsewhere in the UK? Could make a big difference.

I envy anyone who can get a mortgage, I have no chance for years now

Best of Luck
#31
casparwhite
are you sure? a simple search comes up with a few companies offering 10% mortgage and a rate of 5.5 on new builds

http://www.propertyfinder.com/doc/features/top-ten-newbuild-deals.htm


That is a simple search as you say. I have had the builder look to get me the best deal, a mortgage broker, and personally scoured the market to find a deal.

Nationwide are offering 15% on New Builds, (the only lender) but they are purposefully under valuing house (new builds specifically) so it is nie on impossible to get a mortgage. Found that out the Hard way. paid 335 pound to natiowide who under valued the property and the builder wont budge on price, and the lender wont give me any more than its worth.
[mod]#32
...the whole buying and selling market is the reason house prices are going up. It is really a no brainer.

Someone buys a house in 1990 for £35,000 and sells it today for £150,000. Then they buy on having more money to play with.
#33
Do new builds have different criteria in terms of deposit compared to normal houses? We have just been given a mortgage offer on a 15% deposit with the house valued at more than the OP's. And yes, I am in the very early 20s!
#34
Forgot to mention its with Halifax
#35
gtslr
Do new builds have different criteria in terms of deposit compared to normal houses? We have just been given a mortgage offer on a 15% deposit with the house valued at more than the OP's. And yes, I am in the very early 20s!


Yes lenders require 20% deposit on a new whereas secondhand homes, lenders are back in offering 90% mortgages. You will also struggle to get a lender to accept builders incentives towards the deposit.
#36
magicjay1986
...the whole buying and selling market is the reason house prices are going up. It is really a no brainer.

Someone buys a house in 1990 for £35,000 and sells it today for £150,000. Then they buy on having more money to play with.


I think you are missing the point...who will buy that house for £150,000 if nobody can get a mortgage? Property is all about the chain, and at the end of the day, the chain starts and finishes with First Time Buyers. Sigh.

That is a very naive view of the housing market.
#37
PennysMakePounds
I think you are missing the point...who will buy that house for £150,000 if nobody can get a mortgage? Property is all about the chain, and at the end of the day, the chain starts and finishes with First Time Buyers. Sigh.

That is a very nieve view of the housing market.


Somebody that bought a house for £20k and sold it for £90k? First time buyers are redundant in a market that has people buying second homes...
#38
I can get a mortgage. I know other people that have recently got mortgages and those that are in the process of getting mortgages at the moment. It's naive to say that NOBODY can. You might not be able to get the particular mortgage at the particular rate and on the particular house that you want but lots of people can.
#39
[email protected]
I can get a mortgage. I know other people that have recently got mortgages and those that are in the process of getting mortgages at the moment. It's naive to say that NOBODY can. You might not be able to get the particular mortgage at the particular rate and on the particular house that you want but lots of people can.


Are you a first time buyer? Are the people you know a first time buyer? Someone who has nothing but their savings to put against a house. They like i have explained above, can only get a mortgage on a New build with 20% deposit or on a second hand home with 10%.

Nothing i have said is Naive.

Also like i said before, everyperson buying a second hand home, who are homeowners have to sell their house to someone. And who ever they sell their house to has to sell to someone, until you get a first time buyer, buying your property. First time buyers are never redundant.
banned#40
PennysMakePounds
I have looked into it. After 10 years or when ever you sell, you have to pay them back their % in what the house is worth then, not at the % you bought it for.

Also, anything that sounds too good to be true...


wrong

in 10 years you pay back the 10-25% of the shared equity - ie the original amount

its only if you sell that you pay back the same %age of the sale value

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