Budget 2021: Mortgage guarantee to help buyers with 5% deposit

[Reality|Bites]

cheap buy in but can you keep up the repayments or does the bank get a cheap property?

 

[Mark1989]

Me and the Mrs think it's great news, the houses we were looking at were between 80k - 100k so only needing 5% of that is brilliant.

Were sick of renting as what we pay in rent is a mortgage, that being said it's harder to save went renting due to living costs in itself

Only upside to renting is anything with house that goes wrong it's on landlord to fix e.g. boilers, roof etc

Soon as we have the 5% deposit and a house comes up we like I'll use the 5% scheme if it means I'm negative equity for a few years ill take the risk if it means getting on property ladder

 

[Will Gill]

Me and the Mrs think it's great news, the houses we were looking at were between 80k - 100k so only needing 5% of that is brilliant.

Were sick of renting as what we pay in rent is a mortgage, that being said it's harder to save went renting due to living costs in itself

Only upside to renting is anything with house that goes wrong it's on landlord to fix e.g. boilers, roof etc

Soon as we have the 5% deposit and a house comes up we like I'll use the 5% scheme if it means I'm negative equity for a few years ill take the risk if it means getting on property ladder

Yay a happy real life example

Good on you and good luck on the dreaded ladder

 

[Freakbro]

With all the money printing going on around the world, the inflation has so far been absorbed into asset classes, and conveniently we exclude the cost of housing when we calculate inflation. So we can continue to pretend that inflation is pretty low.

At some point, this inflation will trickle into the cost of all goods and services, and the central banks will have to increase interest rates.

I had an email from the Nationwide this week which struck me as odd, they are actually increasing the interest rate on a savings account

A modest rise, from 0.25 to 0.40% (lol), but a rise nonetheless, which does seem to be the first time I've seen that from any current/savings account from any bank in the last decade or more.

 

[Mark1989]

Yay a happy real life example

Good on you and good luck on the dreaded ladder

Yup, I think few people on the forum forget that most of uk are not on huge wages as much as this is a tech forum were not all rolling in it ha

Nor all need a house above 150k to be happy

 

[moon man]

Warning here I go again Sometimes been forced to buy at the low end helps, well it has for me, being forced to look beyond scruffy (saw some right holes though) and see potential, I am pretty much at the bottom of the work food chain and have been for a long time (agency zero hours ect) the 3 bed in Yorkshire was a fraction of the average (paid 44k) and this was bought cash with the proceeds (after a 9yr mortgage pay off)
Wish I had before pics but I wrecked Afew brush cutters in the jungle that was there

 

[Puzzled]

Yup, I think few people on the forum forget that most of uk are not on huge wages as much as this is a tech forum were not all rolling in it ha

Nor all need a house above 150k to be happy

Where do you live out of interest? The fact that you can buy a house for £100k is pretty amazing tbh.

Most people would be very happy with a house for £150k but sadly those houses don't exist in many areas. So people either move and uproot their families, change schools, change jobs etc or they pay more.

 

[MissChief]

Where do you live out of interest? The fact that you can buy a house for £100k is pretty amazing tbh.

Most people would be very happy with a house for £150k but sadly those houses don't exist in many areas. So people either move and uproot their families, change schools, change jobs etc or they pay more.

Scotland and the north of England most likely. Don’t believe these houses are in good areas or are huge though! Probably two bedrooms and relatively small!

 

[Mark1989]

Where do you live out of interest? The fact that you can buy a house for £100k is pretty amazing tbh.

Most people would be very happy with a house for £150k but sadly those houses don't exist in many areas. So people either move and uproot their families, change schools, change jobs etc or they pay more.

Bradford, its a crap city with only minimal good areas

But you can get 3 bedroom with a garden, for 100k, some will have a drive but that can vary

If we can move further we will but we of course have jobs and travel etc to think of

 

[Sheff]

Bradford, its a crap city with only minimal good areas

But you can get 3 bedroom with a garden, for 100k, some will have a drive but that can vary

If we can move further we will but we of course have jobs and travel etc to think of

£100,000 wouldn't even get you a flat here (South West).

I think people were being a bit harsh on Foxeye earlier, in most areas in the South West, the median salary is less than the national median but the median house price is more than the national median - even when London is removed from both calculations.

It's partly the fault of NIMBYism here, a lot of the rural towns and villages oppose any type of expansion and so remain attractive places to live, especially for people looking to move away from urban life in their retirement.

Which also then means that our social services have to support lots of elderly people living remotely, so there's less money to help in other areas.

 

[HACO]

£100,000 wouldn't even get you a flat here (South West).

I think people were being a bit harsh on Foxeye earlier, in most areas in the South West, the median salary is less than the national median but the median house price is more than the national median - even when London is removed from both calculations.

It's partly the fault of NIMBYism here, a lot of the rural towns and villages oppose any type of expansion and so remain attractive places to live, especially for people looking to move away from urban life in their retirement.

Which also then means that our social services have to support lots of elderly people living remotely, so there's less money to help in other areas.

NIMBNYism is really a horrible thing, it's the height of selfishness and it has to go away by policy. Centralise planning permission system nationwide and have an agency that decides those on merit, rather than the desires of NIMBYs who oppose everything so that their properties grow by 7% instead of 6%.

 

[moon man]

I would 100 percent oppose devolopements that spoilt my veiw, look at deer in the top fields or a row of 400k shoeboxes that won't benefit low paid anyway, hard choice.
We move to the country to avoid that crap, chuck them up in Bodmin maybe (oh they are doing)

 

[Surveyor]

I would 100 percent oppose devolopements that spoilt my veiw, look at deer in the top fields or a row of 400k shoeboxes that won't benefit low paid anyway, hard choice.
We move to the country to avoid that crap, chuck them up in Bodmin maybe (oh they are doing)

Your opposition based on a spoilt view is 100% irrelevant to planning decisions.

 

[moon man]

Damn, really? I'm worried now, I think Prince Charles owns it

 

[Spook187]

Scotland and the north of England most likely. Don’t believe these houses are in good areas or are huge though! Probably two bedrooms and relatively small!

What's wrong with two bedrooms

 

[platinum87]

Me and the Mrs think it's great news, the houses we were looking at were between 80k - 100k so only needing 5% of that is brilliant.

Were sick of renting as what we pay in rent is a mortgage, that being said it's harder to save went renting due to living costs in itself

Only upside to renting is anything with house that goes wrong it's on landlord to fix e.g. boilers, roof etc

Soon as we have the 5% deposit and a house comes up we like I'll use the 5% scheme if it means I'm negative equity for a few years ill take the risk if it means getting on property ladder

I cannot see how two people working on minimum wage cannot afford a 80-100k house, or that you've not already done so.

Its just so alien to me to read 80-100k. If i have 200k gross salary, and walk into an estate agents near me, they would laugh me out of the building.

 

[MissChief]

What's wrong with two bedrooms

Nothing at all, but it’s not really suitable for anyone with two (or more) teenagers is it?

 

[MissChief]

I cannot see how two people working on minimum wage cannot afford a 80-100k house, or that you've not already done so.

Its just so alien to me to read 80-100k. If i have 200k gross salary, and walk into an estate agents near me, they would laugh me out of the building.

Two adults on £8.91 working 37.5 hours a week is just shy of £35k a year. Minus tax and NI you’re probably looking at £25-26k a year net. Average rental cost excluding London is now over £800. £9,600 a year. Add on council tax at £1,400 a year and gas and electric at £120pm that’s another £1,440 a year. That’s £12,500, half of their wage gone every month before you even consider food shopping (probably £100pw even for a couple, although it’s possible to spend less) other bills as a car is really a necessity as public transport is so awful in most of the country. It all adds up so I have my doubts even a £100k grotty flat in a bad area will require £10k saving which, unless they have some way of borrowing that cheaply makes ‘living’ very difficult.

 

[platinum87]

Two adults on £8.91 working 37.5 hours a week is just shy of £35k a year. Minus tax and NI you’re probably looking at £25-26k a year net. Average rental cost excluding London is now over £800. £9,600 a year. Add on council tax at £1,400 a year and gas and electric at £120pm that’s another £1,440 a year. That’s £12,500, half of their wage gone every month before you even consider food shopping (probably £100pw even for a couple, although it’s possible to spend less) other bills as a car is really a necessity as public transport is so awful in most of the country. It all adds up so I have my doubts even a £100k grotty flat in a bad area will require £10k saving which, unless they have some way of borrowing that cheaply makes ‘living’ very difficult.

After tax and NI for two people you're looking at £30k, average cost means nothing, I'm sure in area where you can buy for £100k, you can rent for £500

I mean its only a difference of £8600..

There you go, deposit in 3 years not a problem.

 

[MissChief]

After tax and NI for two people you're looking at £30k, average cost means nothing, I'm sure in area where you can buy for £100k, you can rent for £500

I mean its only a difference of £8600..

There you go, deposit in 3 years not a problem.

Rent for £500? Are you being serious? Any place renting for £500 will be a hovel. I pay £650 for a 2 bed house in Central Scotland. Head into any sizeable city and its £800pm.