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The primary driver of prices, not physical supply and demand.
That’s how prices work.
Not with the housing market, its what people can afford to borrow and the size of there deposits. If you go on any mortgage calculator website its terrifying how much people can borrow with little or no deposit. Whole life mortgages means they can borrow a lot more too.
Those calculators are not accurate because they do not ask you everything about your finances. Just because you put in a few figures and an estimated deposit it does not mean that is what the bank/building society will give you. Even a decision in principle can be withdrawn. People leave out certain aspects of their finances thinking they are not relevant to the mortgage application process. And its not until the actual process is underway that those “unimportant” facts and figures suddenly become important and critical to the amount you can borrow.
Hmmmm…… well that’s not really true nether
The better your credit score the low the interest rate. Mortgage lenders are always looking for ways to increase there profits. If they can find anyway to increase interest’s rates for home buyers they will take it. Its a business after all.
Hmmmm…… well that’s not really true nether
The better your credit score the low the interest rate. Mortgage lenders are always looking for ways to increase there profits. If they can find anyway to increase interest’s rates for home buyers they will take it. Its a business after all.
Nope…..having a better credit score has nothing to do with the rate you would be offered.. have a good credit score makes the whole process super smooth and a lot easier than someone with a not so good credit score….the latter can also still successfully get mortgages .rates depend on the loan to value ratio……what mortgage companies have to offer….how much money mortgage houses have to lend…fixed rate mortgages…..variable mortgages and so forth
Mortgages do not just come from banks and building societies and lots of mortgages companies buy mortgages in bulk when rates are low to cushion any effects when interest rates rise and applications drop
The myth of a property shortage is promoted by estate agents, home builders and homeless charity’s. When you take a good look around, there is no shortage of afford housing cross the UK.
So you’re just going to ignore the hard evidence?
The net population growth, is far, far higher than the number of houses being built. In 2019 184,000 houses were built. Even ignoring that, in 2019 there were 640,370 births and 530,841 deaths, that’s a net increase of 119,529 people. In 2020 the net immigration was an additional 313,000 people. So 184,000 houses and 432,000 people.
Hmm… your right and wrong at the same time
And I’m going to show you why…..using me old mate and lover Cosy
Cosy lives in Blackpool, works part time has a football steward and his main income come from government benefits. He close to 70 and got a credit score lower than the goals Ukraine score last night.
Sick of his mum smoking his weed………drinking his home brew and finding her having sex on kitchen floor with his ex………let alone thugs turning up from Mecca bingo demanding he pay her debts of £6.50 or lose his legs…….he decides to move out and become a home owner.
He’s found this lovey 2 bed house he wants in Gorton Street for 62k
https://www.rightmove.co.uk/properties/109282673#/
(I found cheaper but God they were nasty)
Cosy then googles “mortgages for mugs” and finds this add.
https://www.onlinemortgageadvisor.co.uk/income-types/mortgage-on-benefits/
They want a whole months benefits as a deposit and there going to charge him 2k in fees.
His new mortgage plan is:
Deposit: £1000
Annual interest: 6%
Repayment period: 40 years
Monthly repayments: £339But Cosy got some embarrassing pictures of me with me clothes on. He blackmails me into giving him the 12k deposit.
Deposit: 12k
Annual interest: 6%
Repayment period: 25 years.
Monthly repayments: £326
The only different a 10% makes is £13 per month reduction and a shorter repayment period.
Now lets look at the other end of the scale.
There a 4 bed house down the road from me for 1.8 million
https://www.rightmove.co.uk/properties/109897301#/
Lets say I put down 600k deposit. Got a annual interest of 3%, the repayments would still be £5,691 per month over 25 years.
That would make most mortgage lender poop there pants in terror. A 10% market decline would wipe of 180k off the value. 25% market drop would take off 450k.
So if there a 25% in the market and with your 600k deposit that adds up to just over a million. No where close to the 1.8 million you pay for it or they can sell it for. Its one hell of a risk for any mortgage lender for a low 3% interest rate return. They could lose 800k on the deal.
And here is my point, its not the deposit, your age or credit score…. its the loan amount and the interest. Again this is a business. Even if cosy never makes a payment the mortgage broker made his fee and the mortgage lender pick up an assent at a reduced price due to the deposit. Mortgage lender will look at this and think they cant lose due to the low loan amount. And the lost interest on the mortgage? Goggle why debt is good
You cant say that on 1.8 million house with a low interest rate. And its why mortgage lenders will turn down people good size deposits and good credit scores.
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This reply was modified 3 years, 4 months ago by
Mr Fishy.
The myth of a property shortage is promoted by estate agents, home builders and homeless charity’s. When you take a good look around, there is no shortage of afford housing cross the UK.
So you’re just going to ignore the hard evidence?
The net population growth, is far, far higher than the number of houses being built. In 2019 184,000 houses were built. Even ignoring that, in 2019 there were 640,370 births and 530,841 deaths, that’s a net increase of 119,529 people. In 2020 the net immigration was an additional 313,000 people. So 184,000 houses and 432,000 people.
Oh God did you look at the links
You cant argue with the market !!!!!!
Oh God did you look at the links
You cant argue with the market !!!!!!You didn’t link to anything relevent.
Yes I did… cheap housing under 70k
Yes I did… cheap housing under 70k
Because the house is either falling appart, or is in an area with a high crime rate, no jobs or some similar issue.
How is this relevent?
Oh God…………….
Even you cant be this thick
OK…. lets say you are
Earth to Draculina Earth to Draculina Earth to Draculina
Message begins
Because the house is either falling appart, or is in an area with a high crime rate, no jobs or some similar issue.
All houses are falling apart from the day you buy them…. take it from me… there always something that needs fixing.
High crime rates and no jobs wont bovver you much if your sleeping on the streets.
Similar issues? What like street homeless people buying a house next door to yours?
If I couldn’t find a property a tesco’s shelf stacker on min wage couldn’t afford to buy… your argument would be vailed. But I found them up and down the country and even in London.
So your argument is invalid and pointless. The current housing market blows your nonsense out of the water.
End of message
This is planet earth signing off
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This reply was modified 3 years, 4 months ago by
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