Nationwide calls time on the Bank of Mum & Dad.

[Monkeynut]

Dropped down to one car to afford house.
I'll get another car when I'm settled.

Throw in corona. And still one car!
Got an e bike though to cover the commute

We've never had more than one car, and the Dacia is the only car we've ever owned with less than 50k miles already on it.

May, is that you?

If only, but it's still not as bad as they make out... 60mpg everywhere, reliable, just feels like a Renault/Nissan with some older parts designs used in places.

 

[413x]

Why do you think they're so low? To keep the housing market afloat and keep the grey vote. Absolutely no other reason.

Sauce? Average house prices (flats included) have been going up since the 80s. Above inflation too. Or are you just making stuff up for the fun of it?

Oh do shut-up you moron.

I don't own a car.

Absolutely, it's. Trap. Now I'm in the trap I desperately want interest rates to stay low!

 

[Monkeynut]

Absolutely, it's. Trap. Now I'm in the trap I desperately want interest rates to stay low!

Do a long 10 year fix and let them riiiiiiise.

 

[kitfit1]

'A lot worse' than the great depression seems excessive. USA unemployment didn't reach 20% as you stated, it got to nearly 15% and is now down to nearly 10%. It got to 25% in the 1930's. Although I agree the true extent might not be apparent right now. Updated UK unemployment data gets released tomorrow so we shall we.
Interest rates won't rise during a recession either.

Me thinks you have done the wrong type of google search. 30 million of the USA workforce are claiming unemployment benefit as i type. The official figures do not represent the actual numbers of unemployed, much the same in most countries.
When the economy goes into free fall, tax take drops like a stone, all the government can do is borrow or print money. They have already borrowed and printed to the hilt and beyond. Borrowing even more will absolutely cause interest rates to rise............................anyone who thinks otherwise is living in cloud cookoo land.

 

[Guest2]

Flats don't really go up in value unless it's in a sought after place...

Ground rent etc does though.

That’s the same as any property. If it sought after, it goes up in value. If no-one wants it of course its not going to go up in value.
Buy a property in a sought after location (house, apartment, townhouse, whatever) and it’ll be worth more years down the line.
Also making small / medium changes adds to the value - painting, bathroom, kitchen

My apartment has already gone up in value and havent been here 2 years yet.

 

[413x]

That's why in my 1st post i mentioned the USA unemployment figure (30 million), that is 20% of the American workforce. The UK workforce is about 32 million. If we end up at 20% as well, that's 6 million.

Edit: It's not dire, i was in my mid 30's in the 1990's. I Now own my house mortgage free. That came at a cost though, my wife died 10 years ago. The stress she went through probably took 20 years off of her life, i don't know what it has taken out of mine yet. The cost of coming back though is a lot more than just money.

The unseen cost of economic damage. Sorry to hear this. I can't imagine theres much more in life as stressful in terms of money than losing your home

 

[kitfit1]

The unseen cost of economic damage. Sorry to hear this. I can't imagine theres much more in life as stressful in terms of money than losing your home

I didn't lose my house lol, i managed to sell it early enough not to lose everything, but still lost well over £20,000.

I have seen what this sort of economic enormity has done before. Most on here will not have even been born then, but will still be looking to take out £200,000+ mortgages even now. Please peeps, don't do it.....................wait until the depression that's coming is over.

 

[friddela]

Me thinks you have done the wrong type of google search. 30 million of the USA workforce are claiming unemployment benefit as i type. The official figures do not represent the actual numbers of unemployed, much the same in most countries.
When the economy goes into free fall, tax take drops like a stone, all the government can do is borrow or print money. They have already borrowed and printed to the hilt and beyond. Borrowing even more will absolutely cause interest rates to rise............................anyone who thinks otherwise is living in cloud cookoo land.

How do you work out your unofficial figures then?.. Sorry for using official figures, how ridiculous of me.

 

[Psycho Sonny]

Flats don't really go up in value unless it's in a sought after place...

Ground rent etc does though.

Who really cares about that.

So long as he's paying less than he is now he can build equity and savings to move up the ladder.

Currently he can't do anything

 

[Rotty]

Why? (why not take on a graduate)

There were plenty of jobs that were looking for degrees when I left uni. I did leave in 2008 though

we have tried in past and they proved to be idle, full of themselves and feel entitled

The A level folks have been lots better

 

[Guest2]

Who really cares about that.

So long as he's paying less than he is now he can build equity and savings to move up the ladder.

Currently he can't do anything

I agree.
A couple of years ago i was paying £400/month with a friend who was also paying £400/month for a small 2 bed apartment. It was ok but nothing special, not the best location but very close to work at least.
Those apartments to buy were £130k - after living there 3 years i looked at some.

After living there (and renting since i was 18, so 16 years) it was time to buy. Nicer apartments were renting at £1200+ /month in the better areas.

I had managed to save a good deposit and purchased the apartment im in now with a mortgage of £833/month. Bank of mum and dad did help somewhat with a gifted deposit but have been paying them it back (as i said i would) every month.

A few weeks after I moved in, there was an internal notice for a similar apartments in the same block as mine to rent. £1600/month. I’m not saying it was exactly like mine but close, so a good return on £833!
Renting just felt like i was paying someone elses mortgage. It was never ‘throwing money down the toilet’ as my dsd put it because at the end of the day it was like paying for a service. You still got the service but now at least i’ll have something to show for the money being paid.

Back on topic though, banks should care too much about babk of mum and dad. So long as they get their money back they shouldnt care at all. I had a gifted deposit but make over payments every month as have been doing overtime. I’m probably more commited to pay off my mortgage than the average person without a gifted deposit. I hate owing people money, especially when i’m paying interest

 

[Guest2]

we have tried in past and they proved to be idle, full of themselves and feel entitled

The A level folks have been lots better

Probably a bit of arrogance. Once they get bitch slapped into the real world again they’ll be good.
Who isnt an arrogant turd when they are 21?!
Add in the “i’ve just been on my gap yar” with uni and even more so

 

[Rotty]

Probably a bit of arrogance. Once they get bitch slapped into the real world again they’ll be good.
Who isnt an arrogant turd when they are 21?!
Add in the “i’ve just been on my gap yar” with uni and even more so

 

[413x]

Probably a bit of arrogance. Once they get bitch slapped into the real world again they’ll be good.
Who isnt an arrogant turd when they are 21?!
Add in the “i’ve just been on my gap yar” with uni and even more so

"check out my machu pichu selfies"

*SLAP*

"back on the phone, that double glazing won't sell itself"

 

[Guest2]

My first job out of uni and after “gap yar” (I did actually go travelling but only 9 months and with money I had saved) i’m sure i was a bit arrogant.

3 or 4 years answering service desk calls beat/drained that arrogance out of me for sure!

The degree did come in handy for the job I have now, but more so experience, self study and being determined to get the job.

I interviewed twice for it in the past and got rejected (nicely) but did some self study, training and combined with a secondment now have it. (Well have had it for 3 odd years)

 

[Invertigo]

From doing some reading, this only seems to apply to their 90% LTV mortgages which, in fairness, a lot of banks aren't even offering at all right now. I think it's reasonable enough to assume that if someone can't save up a 7.5% deposit without assistance, that they aren't the best risk profile going forward?

 

[Semple]

Exactly this in my view. In October/November, the UK could have between 4 and 6 million people unemployed. The USA already has over 30 million unemployed and rising. Once furlough payments end, the economy will take a big nosedive. Although not the same, in the 1990's the UK left the ERM, the economy went into free fall and interest rates shot to over 15%. I'm not saying that interest rates will go as high, but they could. I doubt very much that anyone on here that has a £250,000+ mortgage would ever be able to afford the monthly payments even at 10%, let alone 15%. Nationwide are doing the right thing at the moment because they know this is coming. I wouldn't be in the least bit surprised if other lenders follow suite, some may go even further than Nationwide.

We took on a 5 year fixed, nearly a year ago. If the economy is in dire straights in 4 years time that interest rates are at 10-15%, then i think there will be a lot more going on to worry about.

 

[Jokester]

We took on a 5 year fixed, nearly a year ago. If the economy is in dire straights in 4 years time that interest rates are at 10-15%, then i think there will be a lot more going on to worry about.

The good news is, the entire world is in the same boat as us, so interest rates aren't likely to be impacted much - indeed, interest rates on government debt are being pushed down because the UK, despite everything, is still seen as a safe haven from the coming economic turbulence.

 

[Semple]

I didn't lose my house lol, i managed to sell it early enough not to lose everything, but still lost well over £20,000.

I have seen what this sort of economic enormity has done before. Most on here will not have even been born then, but will still be looking to take out £200,000+ mortgages even now. Please peeps, don't do it.....................wait until the depression that's coming is over.

This is where people of your generation are unrealistic/ignorant.

People have to take on 200k+ mortgages these days because that's the average cost of a home. The only way not to take on a 200k mortgage is to to have a huge deposit. It's unlikely most people will be able to save for a huge deposit when rental costs usually exceed what you'd pay for a mortgage.

 

[Semple]

The good news is, the entire world is in the same boat as us, so interest rates aren't likely to be impacted much - indeed, interest rates on government debt are being pushed down because the UK, despite everything, is still seen as a safe haven from the coming economic turbulence.

Yep absolutely.

As wrong as it sounds, i actually do take some comfort knowing that we're all in this together. Hopefully the global economic damage should also soften the blow for any economic repercussions we would have endured from Brexit.