fightoffyour Posted September 29, 2022 VT Supporter Share Posted September 29, 2022 12 minutes ago, delboy54 said: When I become Sir Lord Derek of England I will make it illegal for people who own more than 2 houses. To do what? To do what?! Link to comment Share on other sites More sharing options...
sidcow Posted September 29, 2022 VT Supporter Share Posted September 29, 2022 13 minutes ago, delboy54 said: Thanks for the replies, its just that many years ago (last century!) I was earning an average salary of about 8K. So the max amount I was allowed to borrow was 3 x 8 = 24K so any house that I wanted to buy needed to be 24K or less unless I had some spare cash/saving to add to my purchasing power. I recall literally 50 or 60 details for affordable houses around that price range being sent to me by estate agents that I could afford per week! The point I am trying to make is that if the average salary lets say 30K now and the borrowing rules was still 3 x (so 3 x 30 = 90K) then currently suitable houses for first time buyers should be around 90 to 100 K. There seems to be a complete disconnect from earnings and how much the bank/building society is prepared to lend you. People on an average salary being given a mortgage of 5 or 6 times their salary just seems a recipe for disaster - as as happened some years ago and may happen again. After all if suddenly the borrowing "rules" changed from 3 time your salary ...to 6 or 7 times your salary then house prices will rocket.....and they have. Now even modest houses are insanely priced... My daughters and her friends are finding it virtually impossible to get on the housing ladder as are many, many young families.... When I become Sir Lord Derek of England I will make it illegal for people who own more than 2 houses. VTID I mean, I do think it's actually time for a correction in the housing market. Prices have spiralled to ridiculous levels, something has needed to give for a while. The very unfortunate side of that is lots of people suffer. As I said I bought this house in 2012. It's probably doubled in price or more since then, wages haven't gone up anywhere near that. There is no need for it, and unlike your typical Daily Mail or Express reader who seem obsessed with rising house prices it gives me no comfort. What's the point? All other houses are rising at a similar pace, you can't pocket the cash, unless you are downsizing it's pretty meaningless and if your looking to move up or move into a retirement home the gap will just be bigger than it needs to be. House prices rising way beyond inflation is pointless unless you are super rich with a portfolio. Been over 10 years since the last crash so one is overdue. of course it needn't happen now but Tories seem intent on causing damage. So mortgages become unaffordable? Rich people have to sell off their second home or their investment property. Average, not even just poor people lose their home. 2 Link to comment Share on other sites More sharing options...
delboy54 Posted September 29, 2022 Share Posted September 29, 2022 My wife used to work in an estate agent and she used to know several individual landlords who each of them owned over 100 houses.........they used to come in and ask any new houses on the market?, she would show them the details and they would immediately say ok I will buy it tell the owners and take it off the market.....they didn't even go and view the house... The point is if these landlords are mopping up the houses to add to their "collection" then that reduces the potential availability of housing stock first time buyer (supply and demand I guess). These landlords will be able to outbid a first time buyer... 1 Link to comment Share on other sites More sharing options...
lapal_fan Posted September 29, 2022 Share Posted September 29, 2022 1 hour ago, delboy54 said: My wife used to work in an estate agent and she used to know several individual landlords who each of them owned over 100 houses.........they used to come in and ask any new houses on the market?, she would show them the details and they would immediately say ok I will buy it tell the owners and take it off the market.....they didn't even go and view the house... The point is if these landlords are mopping up the houses to add to their "collection" then that reduces the potential availability of housing stock first time buyer (supply and demand I guess). These landlords will be able to outbid a first time buyer... Yup, my lad plays football for a little kids team, one of the dads there is a kitchen sales director and has 30 houses he owns and rents. 30. He's 42. 1 Link to comment Share on other sites More sharing options...
The Fun Factory Posted September 29, 2022 Share Posted September 29, 2022 (edited) 1 hour ago, delboy54 said: My wife used to work in an estate agent and she used to know several individual landlords who each of them owned over 100 houses.........they used to come in and ask any new houses on the market?, she would show them the details and they would immediately say ok I will buy it tell the owners and take it off the market.....they didn't even go and view the house... The point is if these landlords are mopping up the houses to add to their "collection" then that reduces the potential availability of housing stock first time buyer (supply and demand I guess). These landlords will be able to outbid a first time buyer... The UK housing market has had a chronic and systemic shortage of social housing since the privatisation of council housing in the 1980's. The private sector is not capable of building enough housing to fulfil the need. The private rented sector is a disgrace with millions trapped into renting at unaffordable prices. Unless this gets resolved nothing will change. Edited September 29, 2022 by The Fun Factory 1 Link to comment Share on other sites More sharing options...
sidcow Posted September 29, 2022 VT Supporter Share Posted September 29, 2022 1 minute ago, The Fun Factory said: The UK housing market has had a chronic and systemic shortage of social housing since the privatisation of council housing in the 1980's. The private sector is not capable of building enough housing to fulfil the need. The private rented sector is a disgrace with millions trapped into renting at unaffordable prices. Unless this gets resolved nothing will change. I think they can, or could, but there is no incentive to do so. This is why we see lots of land banking and sites sitting empty for years. It benefits housebuilders to have slow steady progress always below the level of demand. Means they have healthy long pipelines, reasonable easy budgets and healthy profits as house prices stay high. If they just built the absolute **** load of houses required and satisfy demand their profits will drop and they'll be scrambling around for future sites, not knowing where their business will be from one year to next. Let's face it as prices have been rocketing over the last few years, their costs haven't been increasing at the same rate so the difference is profit for them, and the supply chain. They can all charge more. 2 Link to comment Share on other sites More sharing options...
PaulC Posted September 29, 2022 Share Posted September 29, 2022 2 hours ago, delboy54 said: My wife used to work in an estate agent and she used to know several individual landlords who each of them owned over 100 houses.........they used to come in and ask any new houses on the market?, she would show them the details and they would immediately say ok I will buy it tell the owners and take it off the market.....they didn't even go and view the house... The point is if these landlords are mopping up the houses to add to their "collection" then that reduces the potential availability of housing stock first time buyer (supply and demand I guess). These landlords will be able to outbid a first time buyer... Yes its so wrong! Link to comment Share on other sites More sharing options...
Genie Posted September 30, 2022 Share Posted September 30, 2022 Quote Government mulling smaller rise in benefits - report People claiming benefits could see a smaller increase than they had been promised under Liz Truss's predecessor Boris Johnson,according to a report in The Times. It says the new prime minister is drawing up plans to raise benefits, such as universal credit, in line with average earnings instead of inflation. Based on September's figures - which are usually used to dictate changes the following April - benefits would rise by 5.5%. That is likely to be much less than inflation which hit a 40-year high of 9.9% in August. The Times reckons this would save the government £5bn. In contrast, its decision to lower the top tax rate of 45% for people earning over £150,000 a year will cost £2bn, according to the Institute for Fiscal Studies. BBC Link to comment Share on other sites More sharing options...
Popular Post Straggler Posted September 30, 2022 Popular Post Share Posted September 30, 2022 On 29/09/2022 at 09:54, delboy54 said: My wife used to work in an estate agent and she used to know several individual landlords who each of them owned over 100 houses.........they used to come in and ask any new houses on the market?, she would show them the details and they would immediately say ok I will buy it tell the owners and take it off the market.....they didn't even go and view the house... The point is if these landlords are mopping up the houses to add to their "collection" then that reduces the potential availability of housing stock first time buyer (supply and demand I guess). These landlords will be able to outbid a first time buyer... The first time I ever sold a home, I had one of these landlords introduced to me by my agent. They offered about £20k under the asking price (I was asking for £180k) and the agent strongly recommended that I accept the deal. At that point they had not shown my home to anyone. I fired the agent that same day, the whole arrangement stunk and I ended up selling only a few weeks later at over £200k (£212k I think) with a different agent. I hate to think how many people get taken advantage of in this way. A £50k swing to me was simply 25% of all of my assets in the world, it made a huge difference in the house I could afford to move to and the area I lived in, even the school my kids ended up going to was in the balance. To the landlord and the agent it was small change, to me it was a life changing amount of money. If I had trusted them my life could have been very different. 5 Link to comment Share on other sites More sharing options...
Delphinho123 Posted October 4, 2022 Share Posted October 4, 2022 2 minutes ago, Genie said: The markets are settling down. Hold firm, we’ll get back to something resembling normality in due course. Interest rates are brutal atm. It’s a complete lottery as to what I do. My mortgage payment going up £580 is something I’m not sure I can or want to try and afford. 1 Link to comment Share on other sites More sharing options...
markavfc40 Posted October 4, 2022 Share Posted October 4, 2022 5 minutes ago, Genie said: The markets are settling down. Hold firm, we’ll get back to something resembling normality in due course. I am not sure that is going to have a positive impact on mortgage rates. Average two year fixed went up from 5.75% yesterday to 6% today. This despite the reverse in the 45p tax rate on Monday which it was hoped would calm things down. I can only see interest rates heading one way for some time yet and that is up. 1 Link to comment Share on other sites More sharing options...
Genie Posted October 4, 2022 Share Posted October 4, 2022 4 minutes ago, markavfc40 said: I am not sure that is going to have a positive impact on mortgage rates. Average two year fixed went up from 5.75% yesterday to 6% today. This despite the reverse in the 45p tax rate on Monday which it was hoped would calm things down. I can only see interest rates heading one way for some time yet and that is up. That’s true, I was thinking more about the returned of most of the 40% of mortgage products that were pulled in a mad panic last week. I just had a look and 4.9% available to borrow £240,000 on a £300,000 house (20% equity) on a 2 year fix over 20 years. 4.8% with 30% equity. 5.3% with as little as 10% equity. Some surprisingly/suspiciously good deals on a 3 year fix with 20% equity on a £300k house Link to comment Share on other sites More sharing options...
Genie Posted October 4, 2022 Share Posted October 4, 2022 I just looked at 5 year fixed Who is paying 5.75% and 6% for 2 year fixes when you can get 5 years for about 5%? You can get the payment down to £1,407 if the term is extended go 25 years. Link to comment Share on other sites More sharing options...
villarule123 Posted October 4, 2022 VT Supporter Share Posted October 4, 2022 Those interest rates are a bit scary, and my heart goes out to anyone that has to renew in the coming months. Surely this can't go on, how are people going to afford to buy for the first time? How will single people cope? This is totally unsustainable. We're lucky that we recently renewed and we have until mid 2024 until we have to get a new deal, but it's still way too close for comfort and kinda feels like we're delaying the inevitable. We're lucky we have a good equity for our ages and that we have another 10 years we could add on to the mortgage until retirement age, but it still sucks when 57 was looking like being the absolute latest we'd have a mortgage hanging over us Link to comment Share on other sites More sharing options...
markavfc40 Posted October 4, 2022 Share Posted October 4, 2022 23 minutes ago, Genie said: Who is paying 5.75% and 6% for 2 year fixes when you can get 5 years for about 5%? You can get the payment down to £1,407 if the term is extended go 25 years. I don't know mate, I just read that the average 2 year fixed had gone up to almost 6%. Average 5 year fix is now are cheaper than a 2 year fix. I am not sure of the equity these figures are based on. Link to comment Share on other sites More sharing options...
Genie Posted October 4, 2022 Share Posted October 4, 2022 2 minutes ago, markavfc40 said: I don't know mate, I just read that the average 2 year fixed had gone up to almost 6%. Average 5 year fix is now are cheaper than a 2 year fix. I am not sure of the equity these figures are based on. I noticed that too, I guess the prediction is that interest rates will drop after about 2 years but who knows. The lenders would like to lock you in as they think you’re going to be overpaying in years 3, 4 & 5 so have made it more attractive. If I were remortgaging now i’d be looking at 5 years, especially as it’s cheaper. 1 Link to comment Share on other sites More sharing options...
ml1dch Posted October 4, 2022 Share Posted October 4, 2022 16 minutes ago, markavfc40 said: I am not sure of the equity these figures are based on. Makes no difference. Everything is 5-6%, irrespective of circumstances. Not enough elasticity in the market for them to be able to price differently for different loan-to-value. Link to comment Share on other sites More sharing options...
sidcow Posted October 4, 2022 VT Supporter Share Posted October 4, 2022 17 minutes ago, Genie said: I noticed that too, I guess the prediction is that interest rates will drop after about 2 years but who knows. The lenders would like to lock you in as they think you’re going to be overpaying in years 3, 4 & 5 so have made it more attractive. If I were remortgaging now i’d be looking at 5 years, especially as it’s cheaper. BOE have openly stated they expect inflation to drop back down in a year or two so inslterest rates should fall then. Link to comment Share on other sites More sharing options...
TB Posted October 4, 2022 Share Posted October 4, 2022 I imagine I might get a few Monty Python gifs in any replies to this, but my partner (at the time) wanted us to buy, as it would be cheaper in the long term compared to renting (that's what she said)... I was sceptical, but eventually agreed. This was in the late eighties. Interest rate when we bought the place was 6.5%. Six months later it was 18.5%. Ouch. Link to comment Share on other sites More sharing options...
foreveryoung Posted October 6, 2022 Share Posted October 6, 2022 (edited) Fuel is still being fiddled at the moment I see. According to the RAC it should be 10p cheaper than it currently is. Also, how can Petrol be 20p cheaper a litre than Diesel, when apparently Diesel is much cheaper to refine and produce. The old supply and demand I guess. It's also getting cheaper to fill with fuel than to charge your electric car at some public charging points. Coincidence, I think not! Edited October 6, 2022 by foreveryoung Link to comment Share on other sites More sharing options...
Recommended Posts