Todays no tulip sherlock poll

[DimPrawn]

Lenders aren't stupid. They know that the asset you are buying is going to fall at least 20% (probably nearer 50%) over the next 2 years, so they are trying to ensure that falls does not put them at risk of loses.

Build your cash pile, sit back and wait.

[scooby]

My thoughts exactly.

The usual blocker is being unable to come up with a 5% deposit plus all the other expenses needed (which for a £200K property in London is tricky for a couple of youngsters.) Even if property prices drop 10 to 20%, that doesn't affect the stamp duty and deposit required by much AND most lenders seem to want >10% deposit these days?

Hopefully someone much brighter than me will show me the error in my thinking.

yep, most lenders do! i had a quote from Halifax the other week, they wanted 10% + all other debts paying off (both mine and wife) and would only lend £167k as we want to keep our current property. they were the only ones willing to offer at the min. i used Contractormoney too, but the market has changed so much... i was being offered up £400k 125% at the turn of the year. (altho i doubt i could afford that or want to commit to that much...)

[Tensai]

These days parents are expected to help their children out!

Agreed. Though I know of a mate who fell out with his Dad, who subsequently demanded a proportion of the equity increase when he sold the house....

[BrilloPad]

My thoughts exactly.

The usual blocker is being unable to come up with a 5% deposit plus all the other expenses needed (which for a £200K property in London is tricky for a couple of youngsters.) Even if property prices drop 10 to 20%, that doesn't affect the stamp duty and deposit required by much AND most lenders seem to want >10% deposit these days?

Hopefully someone much brighter than me will show me the error in my thinking.

These days parents are expected to help their children out!

[Tensai]

how will they buy when no one will give them a mortgage?

My thoughts exactly.

The usual blocker is being unable to come up with a 5% deposit plus all the other expenses needed (which for a £200K property in London is tricky for a couple of youngsters.) Even if property prices drop 10 to 20%, that doesn't affect the stamp duty and deposit required by much AND most lenders seem to want >10% deposit these days?

Hopefully someone much brighter than me will show me the error in my thinking.

[HairyArsedBloke]

The BBC report is typical nuLieBore spin.

As the septics say, "Making chicken salad out of chicken s....."

[wobbegong]

Same old formula; state the bleeding obvious under the heading of "a recent report" or "a recent survey shows . . ." throw a few percentages in for authenticity, then wheel out an academic to back it all up.

Tabloid journalism at it's most inane.

[scooby]

how will they buy when no one will give them a mortgage?

[ChimpMaster]

And to counter the BBC trainee journalist's view, here is another noob journalist's view:-

http://www.metro.co.uk/news/article....&in_page_id=34

[BrilloPad]

http://news.bbc.co.uk/1/hi/business/7433303.stm

Really, thats fascinating.

They should wait a bit longer. More falls to come yet.

[Sockpuppet]

http://news.bbc.co.uk/1/hi/business/7433303.stm

Really, thats fascinating.