Low-deposit mortgages return after Covid slump
20/01/2021 | news | business | 776
There has been a fourfold increase in mortgage products for those offering a 10% deposit.
1
20/01/2021 18:10:35 54 18
bbc
Will bankers ever learn ? Are we heading for another 2008 credit crunch ? Will we be expected to bail them out again ?

And why are RBS still state owned after 12 years ? They need to get their house in order.
3
20/01/2021 18:11:35 68 42
bbc
Why have the Tories failed to recover what is owed to taxpayers ?????
6
20/01/2021 18:13:20 16 5
bbc
You can blame the bankers and rightly so but it takes two to dance. Don’t take on debts you can’t afford to finance.

Money is dirt cheap right now, how many can afford to pay when the rate jumps up?
41
20/01/2021 18:30:17 4 6
bbc
Yes they learnt they can act irresponsibly and those on Income Support will bail them out.
98
20/01/2021 18:52:29 2 3
bbc
What nonsense. A 10% deposit is fairly prudent. Along with other affordability checks seems more than reasonable. Any higher and we are just creating a ridiculously sized hurdle to enter the property market.
150
YWP
20/01/2021 19:08:15 4 2
bbc
Well.... it's not quite like for like yet.

in 2008 you could get 125% mortgages. I mean... banks literally paid you to buy a house.... I think a 90% mortgage is pretty reasonable.
215
20/01/2021 19:40:40 2 0
bbc
The bigger problem is the thousands of flats that are already worth £0 due to fire defects. People have already gone bankrupt. Meaning that banks have already got properties that they can’t sell on their books. With no way to recover the debt. It is only going to escalate, as bills land on peoples doormats and that will be the next banking and housing crisis.
224
20/01/2021 19:43:41 2 0
bbc
Selling RBS now would result in a huge loss for the tax payer- is that what you want
432
20/01/2021 21:24:18 0 0
bbc
Same reason we have had QE since 2010.
2
20/01/2021 18:11:06 62 23
bbc
About time! If people can afford the rent they can afford the mortgage. As long as it's not those horrible 100% or even 100%+.
22
Bob
20/01/2021 18:23:13 27 5
bbc
Lending criteria hasn't changed and the FCA limits still apply. Realistically these low deposit mortgages aren't there to service FTBs on lower incomes who would struggle if rates rose etc.

There's a reason the average FTB deposit varies by region between 20-35% and it isn't because of a lack of mortgage products or desire to save for longer. FTBs simply can't borrow enough.
55
pTc
20/01/2021 18:33:38 11 1
bbc
If we switched from renting to a mortgage I would SAVE £200 a month. Sadly we cannot for love nor money save the deposit, despite great efforts.
441
20/01/2021 21:28:01 0 0
bbc
Best comment I have seen in a long time, have been saying this myself, bring back common sense.
498
20/01/2021 21:59:06 0 0
bbc
Yeah but if you lose your job the DSS will pay your rent, but not your mortgage... so you lose your house along with your job and go back to renting...
544
20/01/2021 22:24:20 0 0
bbc
Completely agree... Wish I'd bought earlier and hopefully this helps people buy rather than chucking money away in rent.
1
20/01/2021 18:10:35 54 18
bbc
Will bankers ever learn ? Are we heading for another 2008 credit crunch ? Will we be expected to bail them out again ?

And why are RBS still state owned after 12 years ? They need to get their house in order.
3
20/01/2021 18:11:35 68 42
bbc
Why have the Tories failed to recover what is owed to taxpayers ?????
138
20/01/2021 19:04:59 4 9
bbc
The deal was done by Liebour.
349
20/01/2021 20:44:35 2 0
bbc
Well they did make a profit on Lloyds shares but we wont talk about that, it doesnt fit your rantings.
365
20/01/2021 20:52:55 1 0
bbc
Failure of spelling bankers
532
djf
20/01/2021 22:19:34 0 0
bbc
Who qas in power in 2008?.
How much did Labour recoup, it happened on their watch!

The Tories have recouped everything from the Lloyds bailout.
607
20/01/2021 23:29:34 0 0
bbc
That was never the plan?
4
20/01/2021 18:12:31 58 34
bbc
Bad move, low cost mortgages = even more buying what they can't really afford, then in 6-10 years expecting the prudent to bail them out YET AGAIN
85
20/01/2021 18:47:14 52 9
bbc
Why does a 10% deposit mean you can't afford it? If your able to save for a £20k deposit. You can probably afford monthly payments on a mortgage.
106
kat
20/01/2021 18:54:35 13 1
bbc
The housing market is out of control and has been for a long time. It used to be mortgages were sensibly limited to ×3-4 times salary. No longer. First time buyers have been absolutely shafted. And really not good for the rest of us either unless downsizing.

The only real winners are the building industry, buy to let landlords, and those selling land for building on.
135
20/01/2021 19:04:02 5 2
bbc
Low deposit doesn't mean can't afford. It's the 4 and 5 x salary mortgages, and the 110% mortgages. Bring it back to the 3x salary based mortgage, and calculate earnings to out goings as they used to.
580
20/01/2021 23:05:16 0 0
bbc
Shut up
5
20/01/2021 18:12:32 2 4
bbc
Knee jerk reaction by a number of lenders ....... as usual
1
20/01/2021 18:10:35 54 18
bbc
Will bankers ever learn ? Are we heading for another 2008 credit crunch ? Will we be expected to bail them out again ?

And why are RBS still state owned after 12 years ? They need to get their house in order.
6
20/01/2021 18:13:20 16 5
bbc
You can blame the bankers and rightly so but it takes two to dance. Don’t take on debts you can’t afford to finance.

Money is dirt cheap right now, how many can afford to pay when the rate jumps up?
14
20/01/2021 18:20:01 12 2
bbc
Ah the "happy days" of mortgage rates approaching 15%.
Don't make the mistake of thinking it can't happen again
19
20/01/2021 18:22:20 4 3
bbc
Bankers have the final say in awarding mortgages. Perhaps they should be more diligent in future.
7
20/01/2021 18:15:42 7 6
bbc
The economy is heading towards a near collapse after the government withdraws the financial life support currently being administered. I would be surprised if you will be able to get a 10% deposit mortgage once this dire situation is upon us.
8
20/01/2021 18:16:47 103 15
bbc
Yes, borrow an insane amount and hope you don't lose your job or the interest goes up
11
20/01/2021 18:19:27 53 10
bbc
Can't say interest rates will rise anytime soon, the plan is to erode debt with inflation along with any savings.
60
20/01/2021 18:35:21 9 5
bbc
Been there, done that, 17% interest rates in the 70s, along with 24% inflation.
218
20/01/2021 19:42:38 2 0
bbc
Always been the case,,,always will be,,,life is a chance.
316
20/01/2021 20:31:50 1 1
bbc
or the house prices crash
648
20/01/2021 23:58:32 3 0
bbc
That's always been the way. Getting on the housing ladder has always been a risky undertaking. Investing is, by its nature, a gamble.
663
21/01/2021 00:12:42 1 0
bbc
There are forces pulling in opposite directions.
With massive borrowing debt, Governments everywhere are desperate to keep interests rates low.
BUT
All that money printing means money is worth less -
and that means inflation is rising.
It'll be gentle at first, maybe.
After that - Hang on & hope.
(2 options check inflation - High taxes & high interest rates).
669
xlr
21/01/2021 00:22:46 0 0
bbc
Both job loss and interest rise are very likely in 2021.

I haven't had a job that's lasted more than 2 years since 2008. It would be stupid for me even to consider a mortgage even if I could afford one. And I'm not a millenial: I at least know my working hours in advance...
9
20/01/2021 18:16:50 6 6
bbc
Unfortunately those homes/mortgages won't go where there needed.
10
20/01/2021 18:18:10 24 10
bbc
Very dangerous, the lessons of Fanni Mae not learned.

A credit Bubble that could be worse than anything seen even in the 20th Century.

Free market economics gone badly wrong, when property is held as stock by investors, leaving financially weak over leveraged.

Usery is held as a moral wrong in some cultures for good reason
24
20/01/2021 18:24:57 14 2
bbc
Parklife
42
20/01/2021 18:30:37 3 0
bbc
Usury
154
20/01/2021 19:08:51 1 0
bbc
The credit bubble was generated by 100%+ mortgages. Lets not get ridiculous the industry is in a completely different place now regarding regulation and affordability checks.
Do we just want to price first time buyers out?
8
20/01/2021 18:16:47 103 15
bbc
Yes, borrow an insane amount and hope you don't lose your job or the interest goes up
11
20/01/2021 18:19:27 53 10
bbc
Can't say interest rates will rise anytime soon, the plan is to erode debt with inflation along with any savings.
25
20/01/2021 18:25:04 4 7
bbc
Correct imo. Gold & Bitcoin as a hedge
615
20/01/2021 23:33:16 1 0
bbc
Inflation goes up to pay off the debt but so does interest rates. Last time that happened interest rates hit 15%. Now that would be 30%
717
21/01/2021 08:54:17 2 0
bbc
yep. govt is biggest creditor, so very happy to debase the currency. roman emporors were assassinated for less.
12
GC
20/01/2021 18:19:34 2 3
bbc
True story: when Big Sam played for Sunderland in the 80s, he asked for a transfer, after the Chairman wouldn't help with the deposit on a house!
13
20/01/2021 18:19:47 14 7
bbc
It would be better if the mortgage industry found a way to address the needs of the growing self-employed, gig-economy workers, entrepreneurs.
A return to old-style10% mortgages just fuels the asset bubble for traditional workers.
6
20/01/2021 18:13:20 16 5
bbc
You can blame the bankers and rightly so but it takes two to dance. Don’t take on debts you can’t afford to finance.

Money is dirt cheap right now, how many can afford to pay when the rate jumps up?
14
20/01/2021 18:20:01 12 2
bbc
Ah the "happy days" of mortgage rates approaching 15%.
Don't make the mistake of thinking it can't happen again
15
20/01/2021 18:20:10 1 7
bbc
Oh gosh the virus has slumped????? Presume lots of Covids are buying houses, so look forward to many up ticks and flattening of curves.

What media nonsense!
52
20/01/2021 18:32:27 1 0
bbc
What?
16
20/01/2021 18:20:35 78 34
bbc
Hi everyone.
Hope you have a great evening.
Stay safe.
225
20/01/2021 19:43:37 37 79
bbc
I can't believe people art voting you down. They must be lefties, who are never happy with anything!
17
20/01/2021 18:20:40 15 13
bbc
Mortgages don't get houses built.
We're a million affordable homes short.
And thanks to Thatcher, there's not the option of cheap council housing any more.
The Tories will do anything - other than build.
Which is madness, even for Tories, as it's private builders who in the end build houses, not the state.
But what do they care?
Every Cabinet Minister is a Millionaire with multiple homes.
35
20/01/2021 18:28:22 2 2
bbc
100% correct
39
20/01/2021 18:23:37 1 1
bbc
Perhaps not. With an estimated 1.3 million EU workers having returned home over the last year, the need probably isn't so great any more. A Brexit bonus.
53
20/01/2021 18:32:45 0 1
bbc
Do you actually know how much an MP gets paid? Or even the PM?
66
20/01/2021 18:37:19 0 1
bbc
Corbyn and Starmer both multi millionaire. Pot a and black comes to mind
74
20/01/2021 18:30:12 0 0
bbc
“The Tories will do anything other than build”
Sheesh! I don’t know where you live, but in my neck of the woods they are concreting over everything!!
An “ under-supply” there ain’t!
18
20/01/2021 18:22:19 32 7
bbc
House prices are very high these days and I can only see interest rates going one way in the future - Up!.
My advice to anyone borrowing is to keep it affordable and overpay if you can to give yourself a buffer just in case.
45
20/01/2021 18:31:08 29 4
bbc
Rates may go up, but only because they’re basically zero now. Even so, negative interest rates are more likely than a rise at the moment.
Japan has had interest rates <2% for 30 years. Don’t be so quick to think they will rise here. The fundamentals of our economy don’t, in any way, support a return to anything like ‘normal rates’.
188
20/01/2021 19:19:19 0 1
bbc
Wise advice!
750
21/01/2021 11:36:33 0 0
bbc
In theory rates would rise when the government wants to borrow more, but not any longer. These days the Bank of England magic money tree creates the money to lend them instead, hence no pressure for rates to rise.

It's this ludicrous monetary policy that's messed up the housing market. Anyone disagreeing... you really think house prices would be so high today if interest rates were still 4-5%?
6
20/01/2021 18:13:20 16 5
bbc
You can blame the bankers and rightly so but it takes two to dance. Don’t take on debts you can’t afford to finance.

Money is dirt cheap right now, how many can afford to pay when the rate jumps up?
19
20/01/2021 18:22:20 4 3
bbc
Bankers have the final say in awarding mortgages. Perhaps they should be more diligent in future.
20
20/01/2021 18:22:30 15 6
bbc
Negative equity, here we come.
26
20/01/2021 18:25:20 7 6
bbc
It's already here...look closely at those spanking new twee estates that the volume builders are constructing. Houses not selling...and withdrawn from the market. Trapped...!
21
20/01/2021 18:23:02 13 7
bbc
In a Covid-19 Brexit ridden economy, mortgage lending and house prices are at record levels! This is totally counter factual and unsustainable. The government's actions are the prime cause of this Ponzi scheme...Stamp Duty breaks, mortgage payment holidays, 'Help-to-Sell schemes are distorting the market. A collapse in house prices is now inevitable and the economic and personal pain unavoidable
28
20/01/2021 18:25:23 14 10
bbc
Blimey. I bet its a laugh a minute in your house.
88
Bob
20/01/2021 18:48:43 4 0
bbc
Whilst I don't disagree with all of your points, the idea that things are going gangbusters is a myth perpetuated by those with a vested interest in making it seem that business is booming.

So yes - agents and the like will tell you they've never been busier but the Land Registry records don't lie. Sales volumes are down 40% down vs. last 3 year average in England.
2
20/01/2021 18:11:06 62 23
bbc
About time! If people can afford the rent they can afford the mortgage. As long as it's not those horrible 100% or even 100%+.
22
Bob
20/01/2021 18:23:13 27 5
bbc
Lending criteria hasn't changed and the FCA limits still apply. Realistically these low deposit mortgages aren't there to service FTBs on lower incomes who would struggle if rates rose etc.

There's a reason the average FTB deposit varies by region between 20-35% and it isn't because of a lack of mortgage products or desire to save for longer. FTBs simply can't borrow enough.
147
20/01/2021 19:07:16 4 3
bbc
It has changed. When I got my first pad in the 90's it was 3x salary for single. or 2.5x salary plus the partners salary. No 100% mortgages. And the advisor sat down with you and went through income and outgoings to see what you could realistically afford.

Just before the crunch you could get a 110% mortgage on 5x salary...
155
20/01/2021 19:08:54 5 0
bbc
They should not be permitted to borrow 'enough' to keep bidding up prices beyond others. Drive prices down, stop enabling bidding up process all of which ends up in the land seller's pocket. There is not a single reason for houses to be priced so high they cost a fraction of it to build.
23
20/01/2021 18:24:08 99 6
bbc
Is that an example of an affordable house in the picture :)
48
20/01/2021 18:31:41 28 3
bbc
Thanks for the chuckle
64
20/01/2021 18:26:19 7 0
bbc
Might be cheaper to build our own houses out of Lego. The will probably last longer than the average modern estate house too!
329
20/01/2021 20:37:07 1 0
bbc
It's an American house
608
20/01/2021 23:31:09 0 0
bbc
YES, Notice its made of clapboard though!!
10
20/01/2021 18:18:10 24 10
bbc
Very dangerous, the lessons of Fanni Mae not learned.

A credit Bubble that could be worse than anything seen even in the 20th Century.

Free market economics gone badly wrong, when property is held as stock by investors, leaving financially weak over leveraged.

Usery is held as a moral wrong in some cultures for good reason
24
20/01/2021 18:24:57 14 2
bbc
Parklife
398
20/01/2021 21:06:57 2 0
bbc
Know what I mean
11
20/01/2021 18:19:27 53 10
bbc
Can't say interest rates will rise anytime soon, the plan is to erode debt with inflation along with any savings.
25
20/01/2021 18:25:04 4 7
bbc
Correct imo. Gold & Bitcoin as a hedge
20
20/01/2021 18:22:30 15 6
bbc
Negative equity, here we come.
26
20/01/2021 18:25:20 7 6
bbc
It's already here...look closely at those spanking new twee estates that the volume builders are constructing. Houses not selling...and withdrawn from the market. Trapped...!
130
ner
20/01/2021 19:02:37 0 0
bbc
Yep. My house was bought off plan 5 years ago. I have to sell. Its on market for what I paid for it. Its cheapest house in this area. No one wants to buy. When I move I have to pay at least 70k more than my house worth because I have to give it away.
27
20/01/2021 18:25:21 215 38
bbc
What's the difference between a pigeon and a millenial ?
.
A pigeon can still put a deposit on a house.
118
20/01/2021 18:59:27 114 165
bbc
Pigeons don't whine?
153
20/01/2021 19:08:47 60 69
bbc
You mean a pigeon wants to put a deposit on the house whereas the other wants to have everything handed to them on a plate and live like a Kardashian. They can’t even stay in during a pandemic lockdown so god forbid staying in more and saving for a house! No way hozay, I will have my Gucci trainers and 3 holidays a year and mummy and daddy will take care of me till they die and I get their house.
197
20/01/2021 19:23:53 65 41
bbc
I'm a millennial and bought a 3 bedroom in the South East recently, solo, no help from bank of mum and dad. It's not impossible. Sure, I worked until 4am doing as much overtime as I possibly could, but I did what was necessary. Stop moaning, work harder.
210
20/01/2021 19:33:19 9 5
bbc
This is a pretty good analogy given that pigeons don't live in houses and the UK currently has a homelessness problem.
241
20/01/2021 19:52:11 11 4
bbc
BTL, HMOs, part ownership all pushing prices up, as returns from rent is good (even after marginal tax on interest component of repayment mortgage). All builders also making a killing making box flats that are not fit for purpose. You shouldn’t allow property to be treated as an investment asset class otherwise prices will inevitably be inflated. That& pension are biggest cost for individuals.
251
20/01/2021 19:59:37 3 0
bbc
A pigeon would outlive you if you both got COVID?
266
20/01/2021 20:09:05 4 16
bbc
Millenials can't do without avocado toast and fancy coffee shop coffees
267
20/01/2021 20:09:07 4 0
bbc
Brilliant! ????
269
20/01/2021 20:10:11 6 1
bbc
Sad that none of your responders have got the imagination to get your quite good joke.
275
20/01/2021 20:13:45 2 0
bbc
We’re in a pandemic which is causing the closure of shops - some of them big names indeed, unemployment through redundancy or furlough and the artificially inflated property market is expected to stay buoyant?
Now you’ll see the difference between those who bought for a home and those who bought for an investment. Fingers will be burnt.
283
20/01/2021 20:16:33 0 2
bbc
Pigeon deposit for brains @Batzorig
382
20/01/2021 21:00:46 0 0
bbc
Small minded think big time
386
20/01/2021 21:02:46 1 10
bbc
Mummy daddy I just want a house! Get me a house!!! Now!!! You hate me if you don’t !!! Not that house!!!
407
20/01/2021 21:13:35 5 6
bbc
My wife's niece often moaned she could never afford a house. However, boozing and clubbing most weekends, festivals, trips to Amsterdam, holidays to Mexico allways seemed affordable to her.
424
20/01/2021 21:22:39 0 0
bbc
Exactly and it's not just about the deposit its about the price of housing it is out of control not many first time buyers especially on there own can afford a property today.
704
21/01/2021 06:05:08 0 0
bbc
Like it:--)
21
20/01/2021 18:23:02 13 7
bbc
In a Covid-19 Brexit ridden economy, mortgage lending and house prices are at record levels! This is totally counter factual and unsustainable. The government's actions are the prime cause of this Ponzi scheme...Stamp Duty breaks, mortgage payment holidays, 'Help-to-Sell schemes are distorting the market. A collapse in house prices is now inevitable and the economic and personal pain unavoidable
28
20/01/2021 18:25:23 14 10
bbc
Blimey. I bet its a laugh a minute in your house.
29
20/01/2021 18:25:40 4 6
bbc
Why all of the negative comments about this story. It feels to me quite reasonable that 10% mortgages should be on offer. The lender sets the interest rate according to the risk and the safeguards of over-borrowing by an individual are much more robust than they were ahead of the previous crash. This is a positive story, in amongst lots of negative ones in recent times.
30
20/01/2021 18:27:24 49 11
bbc
When will people finally realise that the housing market isn't driven any longer by demand...but by producer interests the builders, the lenders etc
229
20/01/2021 19:45:51 25 7
bbc
It's driven by demand created by offering too large mortgages at too low rates as well as stupid schemes like Help to Buy to help people to buy houses they can't actually afford.

All we need is interest rates at a sensible level to shake out the market excesses and bring prices back to affordable levels.
31
Jim
20/01/2021 18:27:26 61 13
bbc
Low deposit mortgages are not good (neither are longer than 25 year mortgages, nor the help to buy schemes) as all they do is lead to ever increasing house price rises.
50
20/01/2021 18:31:44 56 6
bbc
Absolutely. The more you can borrow, the more I’ll up the price. False market. They should leave it all alone and let it find its natural level. Some never learn
59
20/01/2021 18:35:14 14 4
bbc
Why is borrowing longer than 25 years a problem? If you’re 22, why is a 35 year mortgage a problem?

If 26 years is a problem, why not 25?
It’s just convention that states a mortgage should be 25 years. There’s no actual reasoning behind it.
70
20/01/2021 18:39:22 4 4
bbc
You do realise that EVERYTHING, has to rise in price? That’s the basic fundamental of a market economy. Otherwise, the whole economy enters a death spiral and deflation. No one buys anything as everyone simply delays buying anything because ‘it’ll be cheaper tomorrow’.
578
20/01/2021 23:04:34 0 1
bbc
There are areas where a 10 per cent deposit on a 2 bedroom flat will enable mortgage to be paid off in 20-25 years for the same price or lower than same price of a rented flat. Leave people to do this where they can instead just f shoving everyone into the same category of unless you have tons of money, through what you have into the rental market and have no home in pension years. Eg key wrkers
660
21/01/2021 00:09:36 0 0
bbc
Correct, banks will gain from this, a housing crash is around the corner
708
21/01/2021 06:14:28 0 0
bbc
Another to add. I saw a builder openly admit on TV that the houses/flats he builds are for a 50 yr max !!!!! Why would you buy that (not that it will matter in the end) its no investment for your kids.
765
21/01/2021 13:07:08 0 0
bbc
Explain?
32
20/01/2021 18:27:51 6 6
bbc
We have had a growing housing crisis for a number of years now. The Tory Governments have not allowed councils to borrow money to build social housing, despite interest rates being at historically low rates and such borrowing being extremely safe. Why is this? The answer is simple: For decades the Tory belief is that council house tenants don't vote Conservative. Each new homeowner=Tory voter!
75
20/01/2021 18:30:23 1 2
bbc
Councils, including Labour run ones, don;t want to build any social housing themselves, because it ends up as an expensive millstone. We can't have the poor people eating into fat cat council executive pensions now, can we.
89
20/01/2021 18:49:01 1 0
bbc
Of course blame it on the Tories - because Blair and Brown did an amazing job prior!? FFS
33
20/01/2021 18:27:57 7 5
bbc
Buying is cheaper than renting! Simples!!
58
20/01/2021 18:35:12 6 1
bbc
Renting should only ever be a short term fix. A few years at most. People should always look to buy something if they can.
411
20/01/2021 21:15:45 1 0
bbc
Not necessarily when you include building insurance along with general maintenance and wear and tear.

As a landlord over 25 years I have found that 10% of the gross is about right for what things are going to need replacing. Sure, you might get nothing for 5 years and then get a boiler and a shower unit, then small bits and bobs for ten years and it's a new roof, then new glazing, etc etc.
34
20/01/2021 18:28:11 3 4
bbc
So much easier in the 1980's.

MIRAS gave a 25% taxpayer subsidy to home buyers interest payments.
40
20/01/2021 18:30:12 3 2
bbc
And these days we have LISA. 25% back on your money and open to anyone between 18 and 40.
17
20/01/2021 18:20:40 15 13
bbc
Mortgages don't get houses built.
We're a million affordable homes short.
And thanks to Thatcher, there's not the option of cheap council housing any more.
The Tories will do anything - other than build.
Which is madness, even for Tories, as it's private builders who in the end build houses, not the state.
But what do they care?
Every Cabinet Minister is a Millionaire with multiple homes.
35
20/01/2021 18:28:22 2 2
bbc
100% correct
36
20/01/2021 18:29:15 135 14
bbc
Stop all this creating a false market madness. It only ends one way with people left in trouble and the banks walking away laughing.
69
WM
20/01/2021 18:39:11 32 80
bbc
If the banks walk away they don't laugh as they're left with the debt
126
20/01/2021 19:01:35 29 2
bbc
Absolutely agree. Houseprices have been artificially high as a result of various 'help to buy' schemes and stamp duty holidays, etc. The best way to help a first time buyer get on the ladder is to stop the artificial support of the market and allow prices to drop so that houses are more affordable. Not good for sellers but they've had it good for the past decade or more at least.
37
20/01/2021 18:20:55 269 85
bbc
Rather than seeing the housing crisis as a lack of supply, why don't we address the elephant in the room which is a population too big for the existing housing stock?
80
20/01/2021 18:44:07 134 43
bbc
Because the super rich who own property companies and the like want more people so they make more money.
127
20/01/2021 19:01:47 12 13
bbc
And how do you propose to fix that then?? We have to deal with it how it is not some fantasising about how you would like it to be .
132
20/01/2021 19:03:25 15 49
bbc
Elephant in the room is there are way way way too many snowflakes and tree huggers in this country. Grow a pair and get on with it.
Why not address the elephant in the room that there are more empty houses than homeless people. So much for the 'limited stock...too many (brown) people' dog whistle. Removed
146
YWP
20/01/2021 19:07:03 31 17
bbc
Isn't our population due to shrink over the next 20 years as the 'boomers' get older?

One of the problems with the anti-immigration stance is that we're losing access to fully-trained, ready-made, working-age adults to help support the new pensioners - people who generally move here as young adults, pay tax for a while, then move home.
167
20/01/2021 19:13:16 41 12
bbc
Except there are more than enough homes for the entire population and more. Development companies sit on land to push up prices.

Only 2% of the country is built upon - the problem isn’t the number of people, it’s the morons who’ve been in charge for 40 years
175
20/01/2021 19:15:18 24 7
bbc
Nonsense. There are hundreds of thousands of empty properties, but amazingly noone appears to live in them.
220
20/01/2021 19:43:08 6 3
bbc
Not true. It's cheap money that's responsible for unaffordable house prices. Simple as that.
247
20/01/2021 19:51:54 1 2
bbc
Aren’t they exactly the same thing?
261
20/01/2021 20:05:15 1 5
bbc
It IS through a lack of supply. Demand for houses has been far more consistent over the years than the supply. And supply of affordable houses too.
280
20/01/2021 20:15:15 6 0
bbc
And that is the answer to a lot more than purely housing. But let’s be told to carry on with our heads in the sand
357
20/01/2021 20:50:44 8 2
bbc
Years ago when I dare to mention one we will have to talk about size of our population on this site I couldn't get a like, glad to see people are finally sitting up and taking notice.
358
20/01/2021 20:51:00 19 6
bbc
An immigrant, a worker and a billionaire are sat round a table with a packet of biscuits. The billionaire gives one to the immigrant and eats the rest himself. Then he turns to the worker and says “The immigrant had yours”.
360
20/01/2021 20:51:46 8 2
bbc
Like BoJo or JRM and the 12 kids just those two have fathered so far (that we/they know of)
371
20/01/2021 20:56:32 10 12
bbc
We need more immigrants not less and will need even more over the next 20 years as fertility rates drop and the population gets older.

Someone has to pay taxes to pay for those triple locked pensions.
423
20/01/2021 21:22:21 2 2
bbc
Because it is nonsense - house prices are a function of the price and availability of credit (why do you think they crashed rates, had the govt backed loans and put Stamp Duty holiday through?). If it was immigration, was there a mass exodus in 1992 and 2008 when prices fell 15%? (Clue: no).
475
VoR
20/01/2021 21:50:49 3 2
bbc
One reason: If you don't grow the population you end up with a pensions crisis, because the state pensions are paid for out of the taxes of the working population on an ongoing basis. (Ie no money was put aside to pay for the pensions.) Takes a lot of workers to cover those pensions.
488
20/01/2021 21:54:29 0 0
bbc
After you.
490
20/01/2021 21:54:36 0 0
bbc
What do you suggest? Culling?
503
20/01/2021 22:02:13 2 0
bbc
It's hardly the elephant in the room. The right bang on ad-nauseam about the capacity of the country
545
20/01/2021 22:25:36 3 1
bbc
I echo your sentiments and wish this topic was discussed without the usual cries of anti-immigration and racism. We are an island and we are running our of room.
554
20/01/2021 22:30:54 0 1
bbc
Perhaps consider losing some weight if you are to big for the existing housing
557
20/01/2021 22:40:32 0 0
bbc
Covid will free up the housing stock!
569
20/01/2021 22:56:07 0 0
bbc
?After WWII a SOCIALIST Labour govt gave us the NHS & Welfare State, nationalised the Bank of England, British Coal, British Steel, British Railways & Power supplies. Built over a million homes created jobs & reduced our national debt as a % of GDP from 238 to 175.3?
?Socialism ???????
582
20/01/2021 23:07:25 0 0
bbc
Walk down any decent street at night and see how many of those homes are vacant, during lockdown when everyones home.
Idiot. The elephant in the room is that rich oligarchs are buying multiple properties and driving up the market. Removed
38
20/01/2021 18:21:30 8 8
bbc
House prices are ridiculous in the UK. The result of years of mismanagement from the liberal elite. Interest rates have been far too low for far too long.
44
20/01/2021 18:31:00 4 2
bbc
Mismanagement? They benefit from it
17
20/01/2021 18:20:40 15 13
bbc
Mortgages don't get houses built.
We're a million affordable homes short.
And thanks to Thatcher, there's not the option of cheap council housing any more.
The Tories will do anything - other than build.
Which is madness, even for Tories, as it's private builders who in the end build houses, not the state.
But what do they care?
Every Cabinet Minister is a Millionaire with multiple homes.
39
20/01/2021 18:23:37 1 1
bbc
Perhaps not. With an estimated 1.3 million EU workers having returned home over the last year, the need probably isn't so great any more. A Brexit bonus.
417
20/01/2021 21:19:44 0 0
bbc
1.3 million sitting on UK taxpayers furlough whilst chilling in their home country.
34
20/01/2021 18:28:11 3 4
bbc
So much easier in the 1980's.

MIRAS gave a 25% taxpayer subsidy to home buyers interest payments.
40
20/01/2021 18:30:12 3 2
bbc
And these days we have LISA. 25% back on your money and open to anyone between 18 and 40.
1
20/01/2021 18:10:35 54 18
bbc
Will bankers ever learn ? Are we heading for another 2008 credit crunch ? Will we be expected to bail them out again ?

And why are RBS still state owned after 12 years ? They need to get their house in order.
41
20/01/2021 18:30:17 4 6
bbc
Yes they learnt they can act irresponsibly and those on Income Support will bail them out.
10
20/01/2021 18:18:10 24 10
bbc
Very dangerous, the lessons of Fanni Mae not learned.

A credit Bubble that could be worse than anything seen even in the 20th Century.

Free market economics gone badly wrong, when property is held as stock by investors, leaving financially weak over leveraged.

Usery is held as a moral wrong in some cultures for good reason
42
20/01/2021 18:30:37 3 0
bbc
Usury
43
20/01/2021 18:30:39 30 9
bbc
Oh good, so the housing market is healthy, prices are affordable and no more support is needed.

Can we stop with the calls to extend the stamp duty holiday now, maybe get rid of help to buy too. Because y'know, the housing market is in great shape.
57
20/01/2021 18:35:06 32 6
bbc
If interest rates went up reposessions would quickly follow. We need more supply leading to lower prices, more quality rental at public affordable prices and better protection in the private rental market to push out the cowboys that still operate. How come renting is the same cost as buying monthly. Utterly crazy situation driven by greed.
123
20/01/2021 19:00:47 8 17
bbc
My advice to young people is stop having so many holidays, stop eating out, stop buying designer clothes and £1000 phones, stop partying. Save money get on the housing ladder because it is possible no matter what the BBC says and stop being so bloody weak. It was no different in years gone by, my first house in 1991 cost 48K I earned 4K per annum, saved a 10K deposit with my wife and moved in.
38
20/01/2021 18:21:30 8 8
bbc
House prices are ridiculous in the UK. The result of years of mismanagement from the liberal elite. Interest rates have been far too low for far too long.
44
20/01/2021 18:31:00 4 2
bbc
Mismanagement? They benefit from it
83
20/01/2021 18:33:15 1 0
bbc
Mismanaged for the rest of us! Obviously well managed for themselves. Haven't the Blairs got a big property portfolio?
18
20/01/2021 18:22:19 32 7
bbc
House prices are very high these days and I can only see interest rates going one way in the future - Up!.
My advice to anyone borrowing is to keep it affordable and overpay if you can to give yourself a buffer just in case.
45
20/01/2021 18:31:08 29 4
bbc
Rates may go up, but only because they’re basically zero now. Even so, negative interest rates are more likely than a rise at the moment.
Japan has had interest rates <2% for 30 years. Don’t be so quick to think they will rise here. The fundamentals of our economy don’t, in any way, support a return to anything like ‘normal rates’.
65
20/01/2021 18:36:43 4 1
bbc
inflation is already here. Brexit will see to that one.
235
20/01/2021 19:49:03 5 1
bbc
I hope you're correct. Unfortunately I suspect that as the Gov has got all printy printy with the money supply the asset bubble ,sorry, housing market and will keep rising.
46
20/01/2021 18:31:36 105 21
bbc
There are 800000 empty offices in London that nobody is going to use any more. Could they be converted into houses and sold at an affordable price to people who would appreciate them?
54
20/01/2021 18:33:24 34 59
bbc
No - the cost of conversion would be too high
107
20/01/2021 18:54:38 8 17
bbc
Come on, do you really think the pandemic is the end of City life or offices in the UK. People will flood back soon enough and the thousands of jobs and businesses which rely on the office workers can thrive once more. There will be those who want to stay home and save on childcare costs and watch many box sets with a laptop next to them but businesses will soon blink and get them back in.
184
Bob
20/01/2021 19:17:43 0 3
bbc
The outrage at the likes of Terminus House seems to have passed you by.
219
20/01/2021 19:42:49 1 1
bbc
what about infrastructure like schools and supermarkets? We have a converted office block nearby and most of the apartments are empty and have been since completion about 4 years ago. But seen better uptake converting them to student accomdation
353
20/01/2021 20:47:53 1 0
bbc
Right next to Pret and Costa too!
439
20/01/2021 21:27:04 0 0
bbc
Maybe but what do property developers call AFFORDABLE, not our affordable that's for sure.
535
20/01/2021 22:20:36 0 0
bbc
Much easier and more common sense to convert the pubs that have gone out of business
572
20/01/2021 22:59:37 0 0
bbc
Who would afford to move into them...not those needing housing but unable to afford, just the rich who fancy a London pad
611
20/01/2021 23:32:02 0 0
bbc
Then there's the cladding for insulation don't forget!
47
20/01/2021 18:31:37 4 11
bbc
Existing mortgage holders struggled to pay mortgages despite low rates because of massive borrowing. Even bigger loans isn't going to help this. Were need more quality rentable public housing and less sigma attached to renting. It's very common in the EU.

EU, remember that place ? Before you had massive debts, and shortages.
77
20/01/2021 18:42:43 0 1
bbc
Who’s struggling to pay exactly? The payment holiday gave people an opportunity to save a few ££ and they took it.
Not a great thing for them to do but I doubt many people are actually ‘struggling’ to of their mortgage at the moment.
78
20/01/2021 18:43:34 0 1
bbc
What a strange comment. Doesn’t make sense either but hey ho, I’m so pleased we’ve left the unelected burocrats at the EU. I’m pretty sure debt levels in 2008 were higher than they are now.
110
Bob
20/01/2021 18:57:53 1 0
bbc
This isn't about bigger loans, though.

Lending criteria and salary multipliers are unchanged. All that changes is the risk banks are prepared to take on.

If you walk in to a bank they'll lend you 4-5x your salary. You can take out a 10% product or a 40% product. Your loan amount doesn't change. Only your purchasing power and deposit required.
23
20/01/2021 18:24:08 99 6
bbc
Is that an example of an affordable house in the picture :)
48
20/01/2021 18:31:41 28 3
bbc
Thanks for the chuckle
49
20/01/2021 18:31:42 18 5
bbc
Time to watch The Big Short again!
56
20/01/2021 18:34:07 9 0
bbc
There will be a remake, The Biggest Ever Short
72
20/01/2021 18:40:41 3 7
bbc
If you’re going to short something make it the Euro currency. More exits to come in the next 12 months.
297
20/01/2021 20:21:53 3 0
bbc
Capitalism is great until you run out of everyone's money.
303
20/01/2021 20:24:39 3 0
bbc
Love that film and anything to do with 2008. Margin Call,Inside Job , all based on the financial centres but it was 99 Homes that i only saw last week for the first time that was most sobering and relevant to this story. I don’t want to watch it again
31
Jim
20/01/2021 18:27:26 61 13
bbc
Low deposit mortgages are not good (neither are longer than 25 year mortgages, nor the help to buy schemes) as all they do is lead to ever increasing house price rises.
50
20/01/2021 18:31:44 56 6
bbc
Absolutely. The more you can borrow, the more I’ll up the price. False market. They should leave it all alone and let it find its natural level. Some never learn
624
20/01/2021 23:37:51 0 0
bbc
You are right, we've been through that one before and thousands lost everything in foreclosure and the properties sold off by the b/s for their profits!
51
20/01/2021 18:32:24 4 4
bbc
Excellent, more UK debt then
104
20/01/2021 18:53:47 0 1
bbc
Too much is made of debt. The US owes trillions...it doesn’t matter. Economies don’t work unless there is debt, it’s what the money is used for that’s important. Siphoning of off to cronies of the government doesn’t help
15
20/01/2021 18:20:10 1 7
bbc
Oh gosh the virus has slumped????? Presume lots of Covids are buying houses, so look forward to many up ticks and flattening of curves.

What media nonsense!
52
20/01/2021 18:32:27 1 0
bbc
What?
17
20/01/2021 18:20:40 15 13
bbc
Mortgages don't get houses built.
We're a million affordable homes short.
And thanks to Thatcher, there's not the option of cheap council housing any more.
The Tories will do anything - other than build.
Which is madness, even for Tories, as it's private builders who in the end build houses, not the state.
But what do they care?
Every Cabinet Minister is a Millionaire with multiple homes.
53
20/01/2021 18:32:45 0 1
bbc
Do you actually know how much an MP gets paid? Or even the PM?
46
20/01/2021 18:31:36 105 21
bbc
There are 800000 empty offices in London that nobody is going to use any more. Could they be converted into houses and sold at an affordable price to people who would appreciate them?
54
20/01/2021 18:33:24 34 59
bbc
No - the cost of conversion would be too high
68
WM
20/01/2021 18:37:55 16 0
bbc
Against the cost of new developments.... think again, almost the environmental impact is far better
141
20/01/2021 19:05:37 14 3
bbc
Tough. Deny them any other uses. Ban all green field build. A moral necessity.

Micro homes in towns only for ten years. Get homes the size and in the place they are actually needed. Ending commuting. Ending car ownership.
463
20/01/2021 21:37:15 0 0
bbc
Cheape to knock them down and rebuild.
504
20/01/2021 22:02:23 0 0
bbc
I do not get how you come to that conclusion maybe a few would be uneconomical but a lot would
2
20/01/2021 18:11:06 62 23
bbc
About time! If people can afford the rent they can afford the mortgage. As long as it's not those horrible 100% or even 100%+.
55
pTc
20/01/2021 18:33:38 11 1
bbc
If we switched from renting to a mortgage I would SAVE £200 a month. Sadly we cannot for love nor money save the deposit, despite great efforts.
546
20/01/2021 22:25:47 1 1
bbc
This is utter rubbish. Sick of people saying they can't save, when they have iPhone every year with, sky/virgin with full package that they never watch, 2 or 3 holidays a year.

Not saying this is you. If people want to save they will, its a matter of priorities. A home in the future or instant gratification now.
49
20/01/2021 18:31:42 18 5
bbc
Time to watch The Big Short again!
56
20/01/2021 18:34:07 9 0
bbc
There will be a remake, The Biggest Ever Short
43
20/01/2021 18:30:39 30 9
bbc
Oh good, so the housing market is healthy, prices are affordable and no more support is needed.

Can we stop with the calls to extend the stamp duty holiday now, maybe get rid of help to buy too. Because y'know, the housing market is in great shape.
57
20/01/2021 18:35:06 32 6
bbc
If interest rates went up reposessions would quickly follow. We need more supply leading to lower prices, more quality rental at public affordable prices and better protection in the private rental market to push out the cowboys that still operate. How come renting is the same cost as buying monthly. Utterly crazy situation driven by greed.
231
20/01/2021 19:45:05 3 4
bbc
The greed of the liberal elite.
236
20/01/2021 19:49:13 6 3
bbc
Rental prices might be crazy but you must be mad to be private landlord at the
Moment,,,cannot get anyone out of your property at moment no matter how
Much money they might owe or how much damage they do.Its got to stage where
Its not good to be either landlord or renter.
743
21/01/2021 11:24:30 0 0
bbc
More supply would simply mean more houses to sell at sky-high prices. Renting costs are similar to buying as most people consider what's affordable on a monthly outgoings basis.

The trouble is QE and near-zero interest rates. Supposing rates were higher (e.g. 4-5%) would house prices have reached current levels? No chance. It's just basic GCSE maths.
33
20/01/2021 18:27:57 7 5
bbc
Buying is cheaper than renting! Simples!!
58
20/01/2021 18:35:12 6 1
bbc
Renting should only ever be a short term fix. A few years at most. People should always look to buy something if they can.
31
Jim
20/01/2021 18:27:26 61 13
bbc
Low deposit mortgages are not good (neither are longer than 25 year mortgages, nor the help to buy schemes) as all they do is lead to ever increasing house price rises.
59
20/01/2021 18:35:14 14 4
bbc
Why is borrowing longer than 25 years a problem? If you’re 22, why is a 35 year mortgage a problem?

If 26 years is a problem, why not 25?
It’s just convention that states a mortgage should be 25 years. There’s no actual reasoning behind it.
79
Jim
20/01/2021 18:43:36 7 3
bbc
Because a mortgage over a longer period simply allows you to borrow more

That is great for the first person who is able to reach further & buy a more expensive house

But then more & more people start doing it, so the house sellers realise that people have more money = more competition = house prices rise

Pretty soon that increased amount you borrow can only buy what you could originally. Ponzi
700
21/01/2021 04:29:17 1 0
bbc
How many 22 year olds can afford a mortgage and house repairs and upkeep.
8
20/01/2021 18:16:47 103 15
bbc
Yes, borrow an insane amount and hope you don't lose your job or the interest goes up
60
20/01/2021 18:35:21 9 5
bbc
Been there, done that, 17% interest rates in the 70s, along with 24% inflation.
61
20/01/2021 18:35:36 3 2
bbc
For many years it was 5% deposit. Why aren't we back there yet?
177
20/01/2021 19:15:47 0 0
bbc
Risk
62
20/01/2021 18:24:30 12 1
bbc
Are there any specific conditions that need to be met to qualify for this? I completed an agreement in principle with Halifax a few days ago after reading that they were offering mortgages with 10% deposits. But I was called back and told I don’t meet the criteria when I asked what are those criterion I was told by the employee that these are run by the system and couldn’t tell me anymore.
158
20/01/2021 19:09:35 10 1
bbc
Speak to a mortgage broker....
179
20/01/2021 19:07:07 2 0
bbc
If its a "system decline" then its likely its an internal credit score decline. They would be more specific on their decline reason if it was anything else. I'd recommend you seek a broker online, plenty of them only take their cut from the bank, not from yourself. They'll seek out potential banks who'll be willing to lend to you. Good luck.
180
Liz
20/01/2021 19:16:23 2 0
bbc
All lenders have their own internal policies, but the regulator sets overall 'affordability' criteria. I'd recommend getting a mortgage broker to help navigate as they'll know where you're most likely to be accepted. If you apply to multiple lenders and get declined that will affect your credit rating (more credit searches = lower score) making it harder to pass checks.
232
20/01/2021 19:45:40 3 0
bbc
Computer says no!
248
20/01/2021 19:57:16 2 1
bbc
One useful thing you've learnt then: Avoid the Halifax. I discovered their dodgy and misleading terms many years ago.
63
Dcf
20/01/2021 18:26:06 3 5
bbc
Affordability as in being able to meet the interest payments is one thing. Being able to afford to re-pay the capital amount as well is something else.

Banks lend these eye watering size loans due to very low interest rates.

No one mentions the raft of repossessions which will occur 25 to 30 years hence due to not clearing the loan.
92
20/01/2021 18:51:04 1 1
bbc
Surely that’s only an issue for interest-only mortgages (which puts the onus on the borrower to save enough over the years to pay the capital balance at the end... or sell).
23
20/01/2021 18:24:08 99 6
bbc
Is that an example of an affordable house in the picture :)
64
20/01/2021 18:26:19 7 0
bbc
Might be cheaper to build our own houses out of Lego. The will probably last longer than the average modern estate house too!
45
20/01/2021 18:31:08 29 4
bbc
Rates may go up, but only because they’re basically zero now. Even so, negative interest rates are more likely than a rise at the moment.
Japan has had interest rates <2% for 30 years. Don’t be so quick to think they will rise here. The fundamentals of our economy don’t, in any way, support a return to anything like ‘normal rates’.
65
20/01/2021 18:36:43 4 1
bbc
inflation is already here. Brexit will see to that one.
17
20/01/2021 18:20:40 15 13
bbc
Mortgages don't get houses built.
We're a million affordable homes short.
And thanks to Thatcher, there's not the option of cheap council housing any more.
The Tories will do anything - other than build.
Which is madness, even for Tories, as it's private builders who in the end build houses, not the state.
But what do they care?
Every Cabinet Minister is a Millionaire with multiple homes.
66
20/01/2021 18:37:19 0 1
bbc
Corbyn and Starmer both multi millionaire. Pot a and black comes to mind
67
20/01/2021 18:37:50 4 5
bbc
Will they never learn? Easier mortgages mean more borrowing which leads to another slump. The only people who will benefit from this spiralling madness are those at the very top getting ever richer off the backs of those they con.
54
20/01/2021 18:33:24 34 59
bbc
No - the cost of conversion would be too high
68
WM
20/01/2021 18:37:55 16 0
bbc
Against the cost of new developments.... think again, almost the environmental impact is far better
36
20/01/2021 18:29:15 135 14
bbc
Stop all this creating a false market madness. It only ends one way with people left in trouble and the banks walking away laughing.
69
WM
20/01/2021 18:39:11 32 80
bbc
If the banks walk away they don't laugh as they're left with the debt
139
20/01/2021 19:05:03 21 0
bbc
They laugh when they get bailed out
143
20/01/2021 19:06:29 29 1
bbc
They are not left with the debt, they still own the asset, which they can sell as well as the debt. The new owner of that debt can chase you for the difference.

The deposit used to buy the property is basically the risk the bank takes, more deposit from the customer ( less risk ) as it has to drop by that amount before their loan is at risk
270
20/01/2021 20:10:23 5 0
bbc
They don't walk away with the debt - if you don't/can't pay they walk away with your house.
361
20/01/2021 20:49:48 1 0
bbc
You obviously were not awake in 2008.
436
20/01/2021 21:25:08 1 1
bbc
Rubbish they just resell the house to get there money back and any defect they then try to hound the owner for the remaining loss, so win win situation for them.
550
20/01/2021 22:29:14 0 0
bbc
The problem is WM, they aren't because the Government will bail them out - and they have historic evidence to support them. It's practically risk free for them.
616
20/01/2021 23:33:19 0 0
bbc
OH shut up. The bank or lending company retain the deeds, so the risk is minimum. And IF the bank makes a loss the borrower is still due to pay the balance plus costs.
692
21/01/2021 01:04:05 0 0
bbc
The banks didn't lend you their own money. They created the money at the moment the mortgage was taken out. If the mortgage hadn't been taken out, that supposedly borrowed money wouldn't exist, but they'll happily take double that amount in interest over the course of the loan.
705
21/01/2021 06:06:57 0 0
bbc
They dont lose out at all, they make loads to cover any "losses", else they simply wouldnt lend it.
31
Jim
20/01/2021 18:27:26 61 13
bbc
Low deposit mortgages are not good (neither are longer than 25 year mortgages, nor the help to buy schemes) as all they do is lead to ever increasing house price rises.
70
20/01/2021 18:39:22 4 4
bbc
You do realise that EVERYTHING, has to rise in price? That’s the basic fundamental of a market economy. Otherwise, the whole economy enters a death spiral and deflation. No one buys anything as everyone simply delays buying anything because ‘it’ll be cheaper tomorrow’.
71
20/01/2021 18:39:26 3 6
bbc
I hope for a Help to Buy scheme for Key Workers. I am a teacher and this month moved to a new job in a location where it was not easy to get good teachers. Job was empty for 18 months. House prices are very high locally. I am not eligible for the new first time buyers HTB scheme, so now face renting. If things stay this way I will need to move to cheaper area, leaving a key worker vacancy again.
86
20/01/2021 18:47:55 7 3
bbc
If you need to wait for a government scheme to be able to afford a house then you can’t afford a house.

Not an insult... just an observation.
102
20/01/2021 18:41:39 4 1
bbc
Everyone who works is a" key worker". Thar phrase is a left over from all the Blairite nonsense that we had to endure.
49
20/01/2021 18:31:42 18 5
bbc
Time to watch The Big Short again!
72
20/01/2021 18:40:41 3 7
bbc
If you’re going to short something make it the Euro currency. More exits to come in the next 12 months.
137
20/01/2021 19:04:50 4 1
bbc
Ignorance personified.
73
20/01/2021 18:40:48 6 7
bbc
Everything is going to pot. I'll tell you what Bozzer, let's artificially inflate the housing market by lending more than people can afford, it'll keep the proles quiet for a while with the illusion that they're well off. Meanwhile your rich mates can pocket a fast buck off rapid house price growth and sail off into the Brexit protected tax havens leaving the young to pick up the tab. Clever.
17
20/01/2021 18:20:40 15 13
bbc
Mortgages don't get houses built.
We're a million affordable homes short.
And thanks to Thatcher, there's not the option of cheap council housing any more.
The Tories will do anything - other than build.
Which is madness, even for Tories, as it's private builders who in the end build houses, not the state.
But what do they care?
Every Cabinet Minister is a Millionaire with multiple homes.
74
20/01/2021 18:30:12 0 0
bbc
“The Tories will do anything other than build”
Sheesh! I don’t know where you live, but in my neck of the woods they are concreting over everything!!
An “ under-supply” there ain’t!
32
20/01/2021 18:27:51 6 6
bbc
We have had a growing housing crisis for a number of years now. The Tory Governments have not allowed councils to borrow money to build social housing, despite interest rates being at historically low rates and such borrowing being extremely safe. Why is this? The answer is simple: For decades the Tory belief is that council house tenants don't vote Conservative. Each new homeowner=Tory voter!
75
20/01/2021 18:30:23 1 2
bbc
Councils, including Labour run ones, don;t want to build any social housing themselves, because it ends up as an expensive millstone. We can't have the poor people eating into fat cat council executive pensions now, can we.
76
20/01/2021 18:41:05 4 10
bbc
Get ready for hundreds of comments from Nobel winning economists about how we NEED a housing crash.
As though somehow, a crash of 20-30% in house prices would be great for the economy.
87
20/01/2021 18:48:34 3 1
bbc
It would mean I might be able to afford a house in my lifetime. Speculators won't like it.
47
20/01/2021 18:31:37 4 11
bbc
Existing mortgage holders struggled to pay mortgages despite low rates because of massive borrowing. Even bigger loans isn't going to help this. Were need more quality rentable public housing and less sigma attached to renting. It's very common in the EU.

EU, remember that place ? Before you had massive debts, and shortages.
77
20/01/2021 18:42:43 0 1
bbc
Who’s struggling to pay exactly? The payment holiday gave people an opportunity to save a few ££ and they took it.
Not a great thing for them to do but I doubt many people are actually ‘struggling’ to of their mortgage at the moment.
100
20/01/2021 18:52:46 0 0
bbc
They'll likely struggle when inflation starts to take hold again over next year or two and interest rates follow suite, many could see expected repayments unaffordable very quickly.
159
20/01/2021 19:09:56 0 0
bbc
The hundreds of thousands of people who lost their jobs maybe?
47
20/01/2021 18:31:37 4 11
bbc
Existing mortgage holders struggled to pay mortgages despite low rates because of massive borrowing. Even bigger loans isn't going to help this. Were need more quality rentable public housing and less sigma attached to renting. It's very common in the EU.

EU, remember that place ? Before you had massive debts, and shortages.
78
20/01/2021 18:43:34 0 1
bbc
What a strange comment. Doesn’t make sense either but hey ho, I’m so pleased we’ve left the unelected burocrats at the EU. I’m pretty sure debt levels in 2008 were higher than they are now.
59
20/01/2021 18:35:14 14 4
bbc
Why is borrowing longer than 25 years a problem? If you’re 22, why is a 35 year mortgage a problem?

If 26 years is a problem, why not 25?
It’s just convention that states a mortgage should be 25 years. There’s no actual reasoning behind it.
79
Jim
20/01/2021 18:43:36 7 3
bbc
Because a mortgage over a longer period simply allows you to borrow more

That is great for the first person who is able to reach further & buy a more expensive house

But then more & more people start doing it, so the house sellers realise that people have more money = more competition = house prices rise

Pretty soon that increased amount you borrow can only buy what you could originally. Ponzi
128
Bob
20/01/2021 19:02:13 16 2
bbc
Except it doesn't really do that at all.

If you walk into a bank they'll ask you for your salary and the maximum they'll lend you will be a multiplier of that, 4-5x typically.

If you extend the period it they do not suddenly let you borrow a higher multiplier. All it does is lower your monthly repayments, and increase your interest paid over the full term.
37
20/01/2021 18:20:55 269 85
bbc
Rather than seeing the housing crisis as a lack of supply, why don't we address the elephant in the room which is a population too big for the existing housing stock?
80
20/01/2021 18:44:07 134 43
bbc
Because the super rich who own property companies and the like want more people so they make more money.
108
20/01/2021 18:45:59 24 43
bbc
That is why the liberal elite didn't want Brexit. They have a lot of money tied up in rental properties and building shares, so they need steady pressure on the housing stock to fund their fat pensions.
121
20/01/2021 18:49:49 22 37
bbc
Why do you think most of the wealthy were against Brexit. They needed FoM to keep pushing the value of their assets up. Which unfortunately pushes them out of the reach of ordinary working British people.
125
20/01/2021 19:01:19 22 2
bbc
Actually the political mates are those selling fields at development prices that is where the real money is. Obviously the developers get their slices of cake too.
606
20/01/2021 23:29:28 1 0
bbc
Yawn, Yawn, Yawn. Same old same old rubbish from the lefties. What we actually need is mass employment with people on good salaries so these goodies in life can be afforded!!
81
20/01/2021 18:44:27 3 4
bbc
If you’re a 1st time buyer tempted by low deposits, think twice. In the coming months/years income tax and inflation are both going to skyrocket to pay for this Covid lockdown/furlough calamity.

What you might find affordable today will soon be a pipe dream.
209
20/01/2021 19:31:58 1 1
bbc
Fixed rate mortgage would avoid this.
82
20/01/2021 18:45:42 7 6
bbc
The days of negative equity and sky high interest rates are sure to return , I wouldn’t buy a house now , I’d wait and see what the next five years bring , my guess massive taxation increase at the very least , the COVID bill needs paying
91
20/01/2021 18:50:49 7 1
bbc
I see your logic, and I dont want to sound like I am being funny. I bought my flat in central london in 2003, thinking i was paying way too much. 2021 its worth double. I don’t agree in it. I bought a home to live in not make a quick buck. Tragically we live in a country full of greedy, money orientated people. No way will the Tories let their base down. Prices will be kept high by whatever means.
101
20/01/2021 18:52:48 0 0
bbc
Fair enough although i wouldnt be at all suprised if prices are higher in 5 years than now. Good luck :-)
111
20/01/2021 18:47:28 2 0
bbc
Problem is the liberal elite have stitched us up. They will ensure that house prices stay high, after all, they own most of them!
44
20/01/2021 18:31:00 4 2
bbc
Mismanagement? They benefit from it
83
20/01/2021 18:33:15 1 0
bbc
Mismanaged for the rest of us! Obviously well managed for themselves. Haven't the Blairs got a big property portfolio?
164
20/01/2021 19:11:41 1 1
bbc
Yeah and 80% of the government are landlords. Hardly the liberal elite dear
84
20/01/2021 18:35:05 85 5
bbc
Just don't buy a pad on a flood plain.
201
20/01/2021 19:27:11 73 9
bbc
Or a leasehold flat that you’ll then have a bill for £20k for fire defects that you can’t check before buy it. And was signed off as safe by the council.
706
21/01/2021 06:10:38 0 0
bbc
They are currently making plans to build on the under water field opposite us. Out of towns folk will buy, but a shocker awaits. Solicitors that are supposed to do searches dont appear to be doing their jobs because, surely you wouldnt buy an underwater house with knowledge?
4
20/01/2021 18:12:31 58 34
bbc
Bad move, low cost mortgages = even more buying what they can't really afford, then in 6-10 years expecting the prudent to bail them out YET AGAIN
85
20/01/2021 18:47:14 52 9
bbc
Why does a 10% deposit mean you can't afford it? If your able to save for a £20k deposit. You can probably afford monthly payments on a mortgage.
122
20/01/2021 18:50:53 19 0
bbc
Difficult to save 20k if most of your earnings are going on rent already!
151
20/01/2021 19:08:35 3 1
bbc
Love to see the flat in the area you speak of that cost £200,000. The cost in London @ 10% is nearer £35,000 minimum
196
20/01/2021 19:22:36 6 0
bbc
Spot on! Bought my first house with a 10% mortgage and managed fine. With my wife, moved into a bigger house a few years ago also on a 10% mortgage, no problems at all. Then after 2 years, we re-mortgaged to a 15% one as we'd built up additional savings in the meantime. Banks just need to ensure people have sufficient income to cover repayments.
499
VoR
20/01/2021 21:59:10 0 0
bbc
What it does indicate is that you don't have much ability to absorb an increase in interest rates, which could simultaneously leave you in negative equity. We are used to low interest now but rates can need to change quite quickly and substantially.
71
20/01/2021 18:39:26 3 6
bbc
I hope for a Help to Buy scheme for Key Workers. I am a teacher and this month moved to a new job in a location where it was not easy to get good teachers. Job was empty for 18 months. House prices are very high locally. I am not eligible for the new first time buyers HTB scheme, so now face renting. If things stay this way I will need to move to cheaper area, leaving a key worker vacancy again.
86
20/01/2021 18:47:55 7 3
bbc
If you need to wait for a government scheme to be able to afford a house then you can’t afford a house.

Not an insult... just an observation.
93
20/01/2021 18:51:18 1 0
bbc
I am paying more in monthly rental payments than my mortgage would cost per month. I also have a small deposit and an excellent credit rating.
99
20/01/2021 18:52:33 2 1
bbc
Teachers can’t afford houses.

The state of this nation
124
20/01/2021 19:01:08 3 1
bbc
Yes and in a free economy s/he would be able to demand a higher wage because of the shortage of good applicants and afford a house. Instead s/he is doing a job great value to society which unfortunately is not valued by those in power
76
20/01/2021 18:41:05 4 10
bbc
Get ready for hundreds of comments from Nobel winning economists about how we NEED a housing crash.
As though somehow, a crash of 20-30% in house prices would be great for the economy.
87
20/01/2021 18:48:34 3 1
bbc
It would mean I might be able to afford a house in my lifetime. Speculators won't like it.
95
20/01/2021 18:51:59 0 0
bbc
It would mean many would have negative equity and default. Great that you can get a house though.

There are other options like higher wages, better mortgage offers and building actual affordable houses but anything like that is usually called communism
21
20/01/2021 18:23:02 13 7
bbc
In a Covid-19 Brexit ridden economy, mortgage lending and house prices are at record levels! This is totally counter factual and unsustainable. The government's actions are the prime cause of this Ponzi scheme...Stamp Duty breaks, mortgage payment holidays, 'Help-to-Sell schemes are distorting the market. A collapse in house prices is now inevitable and the economic and personal pain unavoidable
88
Bob
20/01/2021 18:48:43 4 0
bbc
Whilst I don't disagree with all of your points, the idea that things are going gangbusters is a myth perpetuated by those with a vested interest in making it seem that business is booming.

So yes - agents and the like will tell you they've never been busier but the Land Registry records don't lie. Sales volumes are down 40% down vs. last 3 year average in England.
32
20/01/2021 18:27:51 6 6
bbc
We have had a growing housing crisis for a number of years now. The Tory Governments have not allowed councils to borrow money to build social housing, despite interest rates being at historically low rates and such borrowing being extremely safe. Why is this? The answer is simple: For decades the Tory belief is that council house tenants don't vote Conservative. Each new homeowner=Tory voter!
89
20/01/2021 18:49:01 1 0
bbc
Of course blame it on the Tories - because Blair and Brown did an amazing job prior!? FFS
90
20/01/2021 18:49:56 60 7
bbc
All very well, but in the South a 10% deposit is over a year's salary for many people.
94
20/01/2021 18:51:38 39 71
bbc
Save for two years then
472
20/01/2021 21:47:35 9 3
bbc
Live in the North then, they have coffee shops there too.
621
20/01/2021 23:35:12 1 0
bbc
That's their fault!!
650
21/01/2021 00:00:22 0 1
bbc
Live somewhere else then.

If nobody can afford to buy the property, the price will come down, or wages will go up to entice people back into the city.
656
21/01/2021 00:06:51 0 1
bbc
This shows that prices are too high and a crash will happen very soon
769
21/01/2021 13:15:02 0 0
bbc
move
82
20/01/2021 18:45:42 7 6
bbc
The days of negative equity and sky high interest rates are sure to return , I wouldn’t buy a house now , I’d wait and see what the next five years bring , my guess massive taxation increase at the very least , the COVID bill needs paying
91
20/01/2021 18:50:49 7 1
bbc
I see your logic, and I dont want to sound like I am being funny. I bought my flat in central london in 2003, thinking i was paying way too much. 2021 its worth double. I don’t agree in it. I bought a home to live in not make a quick buck. Tragically we live in a country full of greedy, money orientated people. No way will the Tories let their base down. Prices will be kept high by whatever means.
427
20/01/2021 21:23:09 1 0
bbc
Legend!

I picked up a brace in the mid-90's and another brace around 2002. Living it large!
63
Dcf
20/01/2021 18:26:06 3 5
bbc
Affordability as in being able to meet the interest payments is one thing. Being able to afford to re-pay the capital amount as well is something else.

Banks lend these eye watering size loans due to very low interest rates.

No one mentions the raft of repossessions which will occur 25 to 30 years hence due to not clearing the loan.
92
20/01/2021 18:51:04 1 1
bbc
Surely that’s only an issue for interest-only mortgages (which puts the onus on the borrower to save enough over the years to pay the capital balance at the end... or sell).
86
20/01/2021 18:47:55 7 3
bbc
If you need to wait for a government scheme to be able to afford a house then you can’t afford a house.

Not an insult... just an observation.
93
20/01/2021 18:51:18 1 0
bbc
I am paying more in monthly rental payments than my mortgage would cost per month. I also have a small deposit and an excellent credit rating.
90
20/01/2021 18:49:56 60 7
bbc
All very well, but in the South a 10% deposit is over a year's salary for many people.
94
20/01/2021 18:51:38 39 71
bbc
Save for two years then
193
20/01/2021 19:13:10 40 3
bbc
Good point, for those 2 years you can live in a cardboard box, eat grass and get to work riding a cow from the field you're sleeping in. Halcyon days indeed!
453
20/01/2021 21:34:25 10 3
bbc
..and watch your BTL landlord jack the rent up.
707
21/01/2021 06:11:52 1 1
bbc
You must be one of them trolls.
87
20/01/2021 18:48:34 3 1
bbc
It would mean I might be able to afford a house in my lifetime. Speculators won't like it.
95
20/01/2021 18:51:59 0 0
bbc
It would mean many would have negative equity and default. Great that you can get a house though.

There are other options like higher wages, better mortgage offers and building actual affordable houses but anything like that is usually called communism
156
Bob
20/01/2021 19:09:29 0 0
bbc
That's only an issue if you need to move or remortgage.

With interest rates so low that's not so much of an issue as it was back when negative equity was last around and new measures have been introduced since then to allow people to move products more easily.
96
20/01/2021 18:52:14 9 4
bbc
What could possibly go wrong, 1980s crash, 1990s crash, 2008...
97
20/01/2021 18:52:22 3 2
bbc
2008 A financial catastrophe Part 2
1
20/01/2021 18:10:35 54 18
bbc
Will bankers ever learn ? Are we heading for another 2008 credit crunch ? Will we be expected to bail them out again ?

And why are RBS still state owned after 12 years ? They need to get their house in order.
98
20/01/2021 18:52:29 2 3
bbc
What nonsense. A 10% deposit is fairly prudent. Along with other affordability checks seems more than reasonable. Any higher and we are just creating a ridiculously sized hurdle to enter the property market.
328
20/01/2021 20:36:51 0 0
bbc
A 10% deposit is a massive gamble in these unprecedented times. For example house prices crashed by about 60% (in real terms) in the 1980s to 1990s crash
686
21/01/2021 00:45:53 0 1
bbc
If you can’t afford 30% of a house from the start why on earth would you buy such a large asset with debt? It’s madness
86
20/01/2021 18:47:55 7 3
bbc
If you need to wait for a government scheme to be able to afford a house then you can’t afford a house.

Not an insult... just an observation.
99
20/01/2021 18:52:33 2 1
bbc
Teachers can’t afford houses.

The state of this nation
77
20/01/2021 18:42:43 0 1
bbc
Who’s struggling to pay exactly? The payment holiday gave people an opportunity to save a few ££ and they took it.
Not a great thing for them to do but I doubt many people are actually ‘struggling’ to of their mortgage at the moment.
100
20/01/2021 18:52:46 0 0
bbc
They'll likely struggle when inflation starts to take hold again over next year or two and interest rates follow suite, many could see expected repayments unaffordable very quickly.