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What's the housing market like at the moment?

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moneysupermarket.com shows FTB mortgages with a 10% deposit for 5.69%

Double the deposit and it drops to 4.25%

Triple it and it drops to 3.49%

 

So saving up that large deposit would appear to be key to getting a good rate and if prices are falling in the mean time, all the better as the actual mortgage will be smaller when you take it out, further increasing the LTV ratio.

 

I don't think the bold bit has ever been in question.

 

The issue is you are talking about 10-30% deposits. Considering we have the highest levels of personal debt ever and are in the early days of a recession I'm not sure where all these FTB'ers are going to get that kind of hard cash?

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It's always been the issue, or at least there was only a brief time when 100% + loans existed.

In 2000 when my SO bought she borrowed the 10% deposit from her brother, there were no loans around at higher than 90%LTV.

 

The recession either effects your or it doesn't in most cases. So either you're working and saving (as a prospective FTB) or you are out of work and no longer planning to buy a house.

So the FTB that don't get affected will get the cash where they've always done, savings, parents, inheritance, etc... Admitted these days it's a much larger amount needed, just one of the reasons the market is dead and prices are still falling.

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Time to review my thoughts from April 2008.

Short of a world war or the Russians going mad I'm going to stick my neck out here with something of a prediction.

 

  • No material change in the next twelve months. +/- 5%
  • Likely merger of two or more of the larger institutions.
  • New mortgage products the like of which we have not yet seen.
  • Steady price growth to be seen again by Easter of 2009.

 

No material change in the next twelve months. +/- 5%

Ok, so the change is 11.9% but not too bad considering the 50% that some were wishing for.

 

Likely merger of two or more of the larger institutions.

Bang on with the mergers

 

New mortgage products the like of which we have not yet seen.

Mortgage products are definitely getting creative but still little volume

 

Steady price growth to be seen again by Easter of 2009.

Bang on with the date for price growth reversal.

 

I don't think that's too shabby. :)

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