House Prices

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Jesus this thread... difficulties buying even with a 25% mortgage ... I can’t even fathom how you can save that much, average house prices in my area for a 25% deposit I’d need over £50k... even if I was living rent free that’s not even feasible. Would probably take me another 10 years to save. Was feeling pretty happy with the £8k I’ve got now till I read this :cry: Unless we can get a very least 80% LTV mortage or do help to buy we’re not going to be able to get onto the property ladder in the foreseeable. Both on decent £30k + wages with good credit... so unfair!
 
Pixipoppy said:
Jesus this thread... difficulties buying even with a 25% mortgage ... I can’t even fathom how you can save that much, average house prices in my area for a 25% deposit I’d need over £50k... even if I was living rent free that’s not even feasible. Would probably take me another 10 years to save. Was feeling pretty happy with the £8k I’ve got now till I read this :cry: Unless we can get a very least 80% LTV mortage or do help to buy we’re not going to be able to get onto the property ladder in the foreseeable. Both on decent £30k + wages with good credit... so unfair!
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You should absolutely be proud of yourself for your savings!! My mortgage is 85% LTV, and the 90% and 95% LTV mortgages will come back, it’s just likely to be 2021 rather than right now. Saving for a deposit is so hard, especially when renting. I am buying in London so the prices are just extortionate too😰 The only positive of my last relationship not working out was that our house went up a bit in value, so when we sold it I got some cash which boosted my savings.


I’m going to chat to my broker on Monday to see if there’s another lender who might be more likely to do a less conservative valuation of the flat. The seller will only reduce by 7.5k (bearing in mind the 30k undervaluation) so I either need to find that money, try my luck with a new lender or just pull out. Ugh. A large part of me is just wondering whether this is even worth the stress!

AND to top it off, me and my partner just decided to break up (we weren’t buying together) so it has been one HELL of a week 🤯

Is this all a sign I should stay put, continue renting and have stability?!
 
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Pixipoppy said:
Jesus this thread... difficulties buying even with a 25% mortgage ... I can’t even fathom how you can save that much, average house prices in my area for a 25% deposit I’d need over £50k... even if I was living rent free that’s not even feasible. Would probably take me another 10 years to save. Was feeling pretty happy with the £8k I’ve got now till I read this :cry: Unless we can get a very least 80% LTV mortage or do help to buy we’re not going to be able to get onto the property ladder in the foreseeable. Both on decent £30k + wages with good credit... so unfair!
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I feel the same as you! We’d need £40k+ to buy and I can’t imagine having anywhere near that in the next few years. It’s hard but keep your head up. You should be proud of the money you saved and I still like to think everything will work out in the end 🤗
 
Pixipoppy said:
Jesus this thread... difficulties buying even with a 25% mortgage ... I can’t even fathom how you can save that much, average house prices in my area for a 25% deposit I’d need over £50k... even if I was living rent free that’s not even feasible. Would probably take me another 10 years to save. Was feeling pretty happy with the £8k I’ve got now till I read this :cry: Unless we can get a very least 80% LTV mortage or do help to buy we’re not going to be able to get onto the property ladder in the foreseeable. Both on decent £30k + wages with good credit... so unfair!
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Don't be discouraged!! We only have 25% deposit because we had both come in to inheritances as well as both still live at home so don't pay any bills of any kind. Its an extremely privileged position to be in and we're still struggling due to being recent graduates on low salaries therefore not seen as "secure" by the banks! Like you, our 25% deposit is over 50k but honestly I wouldn't even have 5k to my name if I didn't inherit that money.

We've been looking steadily for about 1.5 years now and I can say getting a mortgage broker really, really boosted the amount we could borrow and who was willing to give us a mortgage. Most banks only accept two people's income but our broker found one in Ireland that accepted 3, which we wanted to ask one of our parents if they would be willing to put their income down so maybe that would help our chances, then Covid happened and that bank scrapped the deal! We hadnt really researched it either, would the third income have rights to our home? Would they need to have their name on the mortgage? etc.

I definitely think you can get on the ladder with 8k deposit on your salaries if you're on 60k combined but obviously I understand there are so many other variables to factor in such as house size, area, schools, fixer upper or no work, etc. Have you played around with any online mortgage calculators? The Barclays one on the website is exactly the same on they use in the bank! We were quoted the same amount in the bank as when we checked online.
 
When do you guys think the 5-10% LTV mortgages would be back? Are you guys anticipating end of the year or maybe next year?
 
This graph was in the fail to show mortgage approvals, with thousands of job cuts annoyed every day approvals will still be way down.

Honestly I think it's the start of something new, people have been conditioned and used to insanely high house prices but it need not be that. They probably won't have a huge crash as inflation will hide it but it's so insanely difficult for anyone younger to get a house so that was never going to last forever.

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Italy2 said:
When do you guys think the 5-10% LTV mortgages would be back? Are you guys anticipating end of the year or maybe next year?
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Lots of banks are still offering mortgages with 5 + 10% deposits, they have only been pulling them temporarily. I think YBS announced this week they were back and Nationwide said their reason for pulling them for a few weeks was due to unprecedented demand and low call centre numbers so they needed to catch up processing. 90%LTV is still not available through intermediaries, so brokers but if you go direct many of the big ones are doing them.
 
I live in north east England and trying to find a flat to rent at the moment. There’s hardly anything coming up on the rental market which I can understand at the moment but when properties do come up they are such a poor standard and prices extortionate. £550+ a month (expensive for northern England) for a 2 bed flat with 1980s decor and 30 years of grime ingrained into the bathroom tiles, they’re all tiny with no parking... We went to view one rare nice flat.. 7 other applicants and it had been on for less than a day, of course we get outpriced as landlord started a bidding war for who could spend the most per month.. nothing else in the pipeline at all now after being rejected for that one. It’s so depressing. When you work hard and don’t want to pay over the odds seems like you get punished and have to live in poor quality housing. Can’t get onto a council housing scheme as earn too much/we’d be waiting years, which I get as there are people with greater need. But yeah feeling super down with it all. 3 years ago when we got our flat now we got it straight away and it was decent quality, no competition for who could pay the most we paid the asking price!
 
hashbrown123 said:
I live in north east England and trying to find a flat to rent at the moment. There’s hardly anything coming up on the rental market which I can understand at the moment but when properties do come up they are such a poor standard and prices extortionate. £550+ a month (expensive for northern England) for a 2 bed flat with 1980s decor and 30 years of grime ingrained into the bathroom tiles, they’re all tiny with no parking... We went to view one rare nice flat.. 7 other applicants and it had been on for less than a day, of course we get outpriced as landlord started a bidding war for who could spend the most per month.. nothing else in the pipeline at all now after being rejected for that one. It’s so depressing. When you work hard and don’t want to pay over the odds seems like you get punished and have to live in poor quality housing. Can’t get onto a council housing scheme as earn too much/we’d be waiting years, which I get as there are people with greater need. But yeah feeling super down with it all. 3 years ago when we got our flat now we got it straight away and it was decent quality, no competition for who could pay the most we paid the asking price!
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I'm not surprised, the government has repeatedly whacked landlords over the head with a spade in recent years with extra taxes, fees and unnecessary regulation that just hammers the good landlords and does nothing about the scum landlords that ignore the law at every turn anyway. And then utterly thrown landlords under the bus during coronavirus by suspending all the legal procedures, which has given carte blanche to less moral tenants to just stop paying any rent at all; and offered "mortgage holidays" which in reality do absolutely nothing but just shove problems a few months down the line ... those mortgage payments still have to be paid in full, just a little bit later on. And mortgage holidays do sod all for service charges or letting agent fees which all still need paying.

I'm not at all surprised at any landlords just giving up on it all and being happy for properties to simply sit empty for six months till things are a little bit more back to normal, it's just not worth the risk right now.
 
kev1974 said:
I'm not surprised, the government has repeatedly whacked landlords over the head with a spade in recent years with extra taxes, fees and unnecessary regulation that just hammers the good landlords and does nothing about the scum landlords that ignore the law at every turn anyway. And then utterly thrown landlords under the bus during coronavirus by suspending all the legal procedures, which has given carte blanche to less moral tenants to just stop paying any rent at all; and offered "mortgage holidays" which in reality do absolutely nothing but just shove problems a few months down the line ... those mortgage payments still have to be paid in full, just a little bit later on. And mortgage holidays do sod all for service charges or letting agent fees which all still need paying.

I'm not at all surprised at any landlords just giving up on it all and being happy for properties to simply sit empty for six months till things are a little bit more back to normal, it's just not worth the risk right now.
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Yeah I can’t blame the good ones that do care and follow their side of the rules. Just a shame good landlords and good tenants get shafted really isn’t it. Just wish I’d have started looking before corona but I personally think living through lockdown has heightened the desire to move! Hopefully we don’t have to wait 6 months! 🤞🏻
 
I am so impatient to move house. Houses where we are looking seem to be selling fast but we haven't found the one for us yet. I am worried about whether the market will crash ,but I'm buying a home ,not a business venture. Although I do worry if we wait , better houses may become affordable.
 
Kim Mild said:
I am so impatient to move house. Houses where we are looking seem to be selling fast but we haven't found the one for us yet. I am worried about whether the market will crash ,but I'm buying a home ,not a business venture. Although I do worry if we wait , better houses may become affordable.
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We're in the same boat. We are very impatient but have decided to "wait" - although we are still searching every night 🤣.
Right now, in our area, it seems property prices have been inflated by a lot! I think estate agents are overvaluing houses right now so that when people low ball offers, they will still meet their actual target or not far off. Can they do this?
 
idk2 said:
I think estate agents are overvaluing houses right now so that when people low ball offers, they will still meet their actual target or not far off. Can they do this?
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Of course they can, Estate agents is just a sales job with a low barrier of entry so attracts cowboys looking for a quick buck.

It's happening lots around here, buyers demand 10% off so they are overvaluing by 10%. Any pent up demand will soon be over (if it isn't already) as no one would realistically take on a huge debt when there's no chance prices will increase and the current reductions in house prices are likely to keep happening for the next few months.
 
Yel said:
Of course they can, Estate agents is just a sales job with a low barrier of entry so attracts cowboys looking for a quick buck.

It's happening lots around here, buyers demand 10% off so they are overvaluing by 10%. Any pent up demand will soon be over (if it isn't already) as no one would realistically take on a huge debt when there's no chance prices will increase and the current reductions in house prices are likely to keep happening for the next few months.
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Yes, I thought that would be the case. I've started looking at auction properties and have seen a lot of fixer uppers in a few good areas well within our budget incl. potential renovation costs. However not too sure we want to take such big risk on a build like this in times were we could potentially lose jobs, etc. I've been filtering my searches by houses that have been reduced recently and theres only been 3 since June so fingers crossed, more come through in the summer.
 
idk2 said:
Yes, I thought that would be the case. I've started looking at auction properties and have seen a lot of fixer uppers in a few good areas well within our budget incl. potential renovation costs. However not too sure we want to take such big risk on a build like this in times were we could potentially lose jobs, etc. I've been filtering my searches by houses that have been reduced recently and theres only been 3 since June so fingers crossed, more come through in the summer.
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Not necessarily. A friend of a friend was selling a second home for a year now (it’s in not the best location and it’s reversed - bedrooms downstairs and kitchen/lounge upstairs). They kept reducing it, couldn’t sell it themselves. Got an estate agent - still no luck, and they advised to rent it, so that’s what they did. Their agent have advised it to many of their customers as well, so people might either stay out or rent it out if they can.
 
So a house went up on Rightmove for sale last week with 2 photos, one at the front and another of an overgrown garden. I rang the estate agents today to ask whether they would be putting more pictures up soon so people can have a better idea. The estate agent told me that they won't be putting any more pictures up yet because the house is cluttered at the moment and they have the keys for a viewing. Apparently they have already had an offer on the house but it's under negotiation because it's too low. I asked her how can people make an offer without pictures in a week and she said oh they have viewed the house. I think they are just lying. Why do estate agents lie so much!?
 
Italy2 said:
So a house went up on Rightmove for sale last week with 2 photos, one at the front and another of an overgrown garden. I rang the estate agents today to ask whether they would be putting more pictures up soon so people can have a better idea. The estate agent told me that they won't be putting any more pictures up yet because the house is cluttered at the moment and they have the keys for a viewing. Apparently they have already had an offer on the house but it's under negotiation because it's too low. I asked her how can people make an offer without pictures in a week and she said oh they have viewed the house. I think they are just lying. Why do estate agents lie so much!?
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Their ability to lie is one of the requirements for the job.
If I were you I would just go ahead and view the property as long as you keep in mind it will be a tit hole but look past that and imagine what you could do with it.
 
Moe said:
Their ability to lie is one of the requirements for the job.
If I were you I would just go ahead and view the property as long as you keep in mind it will be a tit hole but look past that and imagine what you could do with it.
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I am sorry but it is not a nice thing to say. My friend is an estate agent who is training to be a surveyor and this stereotype really hurts him and his colleagues.
the corporate chains do lie a lot more than small local agencies purely because of the way they work. In any sales job you need to sell whatever you are selling and you need to make it appealing.
Italy2 said:
So a house went up on Rightmove for sale last week with 2 photos, one at the front and another of an overgrown garden. I rang the estate agents today to ask whether they would be putting more pictures up soon so people can have a better idea. The estate agent told me that they won't be putting any more pictures up yet because the house is cluttered at the moment and they have the keys for a viewing. Apparently they have already had an offer on the house but it's under negotiation because it's too low. I asked her how can people make an offer without pictures in a week and she said oh they have viewed the house. I think they are just lying. Why do estate agents lie so much!?
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If the offer is low, they may have made an offer without looking at it. Also, if they have viewed the house (which is also possible) then they don’t need the pictures to make the offer. Also the offer could have come from a friend of the person who is selling or people who have registered their interest with the agent - before the property goes on Zoopla/Rightmove the agent may contact the people who are interested in particular type of property and have registered with the estate agent.
 
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