To think it's good news about house prices falling

[brexitstolemyfuture]

The sentiment has really changed in comments sections all over the place.

It is a bubble, no way can something keep rising indefinitely. From my area in the south it's been 10% increases for years yet wages are the same. Average wage is 26k where I am, average house is over 300k.

A slow poping of them would be best for the economy and give hope to those not born when they were affordable. I speak as someone that owns.

Right said - no offence but the repayment on a £200k mortgage is going to be about £800 a month. How can you not afford that with both working?

We can afford £800. I did it based on a £1300 monthly repayment (what we currently pay in rent) and that was what it came out with when I did it last year. I haven't been able to bring myself to do it again since as while we have some savings, they're nowhere near a 6-figure sum.

Insta it's very easy to see how prices will fall, there are dozens of things that could affect them! The money supply affects houses more than demand.

You didn't read right saids, very good, post! She would need 150k deposit to magic out of thin air. And that would just be for a one bed with no room for a family.

Excellent post right said, totally agree. I'm maybe 10 years older and bought my house that has gone up a stupid amount. Sadly I'm doing ok just because i was born earlier. This is very unfair and unequal system that is rotten. Younger are being sold so many lies you sure are right about that!

YANBU. It's good for everyone surely. It makes the first step on the ladder a marginally more realistic prospect for first time buyers. It makes the next step on the ladder more affordable for young homeowners. For older homeowners who may not be planning a move, it makes the prospect of home ownership more realistic for their children / younger family members. The endless increases are completely unsustainable and are the cause of so many social problems.

A £200k mortgage isn't going to cost you anything like £1300 a month. Mine is £300k and is £1000. I know saving a deposit is super hard but you certainly won't need to worry about saving £150k.

Rightsaid very clearly explained that they couldn't manage to save the £150k deposit. Honestly, some people just don't get it no matter how many times it's being explained. The younger generation are on a hamster wheel to nowhere. They've been tested & educated to within an inch of their life with no prospect of substantial pay rises and an a housing market that's moving further and further away. I can't believe there hasn't been a revolution to be honest. Maybe there will be next week. No wonder Corbyn is doing surprisingly well.

I'm amazed you can think of ways so easily yet the industry are struggling to quantify the risk of prices falling. As I pointed out, it's highly unlikely rightsaid needs a £150k deposit out of thin air. It's bad but there is no point exaggerating how bad

My whole point was a £150k deposit isn't necessary.

And as someone else said NE isn't the huge risk it once was due to more responsible lending practices requiring 10%+ deposits and low interest rates.

I assume you're an estate agent

No, on the board of directors for a house builder

I've just redone the calculations, using the Google mortgage calculator. Figures seem to have shifted since I did it last year. Apparently on £1300 repayments pcm I could get a £248,362 mortgage. If someone else can point me to an alternative source that says I would be able to get a higher mortgage amount (approx. £330k) for the same repayments, I would be very interested to know.

Unfortunately, I don't have the remaining £100,000 to cover the deposit on the flat I currently live in, or an equivalent one. I have about a fifth of that, and that's because I've worked ever since I was 18, including part time during university, and full time ever since. I don't eat meat. I regard taking public transport (rather than cycling) as being a bit of a luxury, and I certainly don't own a car. I cook from scratch, and frequent the reduced section for bargains. I don't have parents that are in a position to help us, and even if they could - what about those who don't have parents who can afford to help them? I'm not in line to inherit from my one remaining grandparent, and both parents are in good health, in their 60s, and aren't likely to die in the foreseeable future or indeed before my ovaries pack up.

Meanwhile, house prices are rising far faster than my pay does (my pay rise this year was 2%; the most recent figures for my borough show a 5.46% house price increase in a year.

I, and everyone else of my generation, is utterly fucked, despite our best efforts.

I just redid the Zoopla valuation on the flat I live in. It said £350k last year. Now it says it's worth £380k.

It has gone up in one year by about the same amount that I earn in a year. I'll revise my statement from above; if someone can point me to an alternative source that says I would be able to get a higher mortgage amount (approx. £360k) for the same repayments (£1300pcm), I would be very interested to know.

For a start don't rely on zoopla!

Where should I look? I've just looked at what's available locally. There's a one bed flat on my road (similar, except it has a garden, which I'd dearly love but have no hope of) and that has just sold STC for £525k. The cheapest 1 bed flat up for sale in the area is £365k.

Even if my figures were out by £10k, we still have no hope of buying within the foreseeable future - and we certainly won't get a 2 bed flat in the next decade before my ovaries pack up.

Why would you need a 150k deposit on a 380k house? Most lenders are happy with a minimum 5 or 10% deposit.

purple lenders often will only give you multiples of salary or the repayments on a massive mortgage would be unaffordable.

Purple - because otherwise we couldn't afford the repayments. I'm basing it on the £1300pcm that we currently spend on rent.

Since my first post, I've gone back and revised the deposit I'd probably need as my figures were based on when I looked last year. It's looking more like a £100k mortgage. We do not have that, and I don't know anyone in their mid-20s who does unless their parents are both wealthy and generous.

Seems to be quite a few people with a vested interest in the housing market bubble continuing on this thread. Any suggestion that prices are inflated unrealistically being pounced on. Definitely one or two EAs. At least Instasista is being transparent.

rightsaid have you looked at shared ownership? That's what we did and it gave us security and freedom to decorate however we want.

Plus the deposit needed for shared ownership is much lower.

Another advanced of shared ownership is if prices drop you could use the situation to buy a bigger share.

Rightsaid bbc mortgage calc says a 35 year mortgage of 3.8% interest will be £1303 a month giving you a mortgage of £300k.

SORRY posted too soon - also agree shared ownership is a fantastic option for you

Yeah i know Purple. My understanding is that deposit size doesn't effect how much your house can actually be worth though? Regardless of deposit size the bank will still only mortgage you on a house worth 5 x your income iyswim. The deposit just means you will have a lower ltv and a better interest rate.

Where are you looking rightsaid? You can choose to have a longer than 25 year mortgage if you are young enough. interest rates are low atm. If you took out a 310k mortgage most banks have offers under 2% which would put payments at just over 1300 per month on 25 years. I know its still a 60k deposit but no where near 150!