Having to have £20,000 deposit is a killer for most new buyers

[BrilloPad]

The house price rises of the last few years has really been quite similar to a pyramid selling scam.

[gingerjedi]

With the housing market running away from peoples budgets its easy to see why some felt compelled to get a 100% mortgage, I was talking to a mate who had some financial difficulties over the last few years and he was saying how he's so relieved that he couldn't get a mortgage when he tried a couple of years ago, at the time he thought the market was getting way beyond him and he would probably never be able to afford to buy, he's now saving a deposit and looking forward the getting a decent house at a reasonable price in a year or so.

When I bought my current house in 2001 I had a 10% deposit but if I didn’t waiting and saving for a deposit would have been a stupid thing to do, with values rising at 10% a year it would have been a waste of time and money.

[stackpole]

100% mortgages given to the wrong people. Lots of people starting professional jobs have no savings (in fact £10s of thousands of debt) but do have good salaries.

If their salaries are that good, they should have no problem saving up a deposit first. That demonstrates to both them and the lender, before all that money is thrown at them:

1. They are capable of fiscal responsibility - many aren't, as has been proved in recent years

2. Their good salary is a long term thing and not based one good year or massaged figures

3. They are less likely to be in negative equity if they lose their job, which could cost the lender money on reposession and resale

Offering a 100% mortgage to someone who already has £10s of thousands of debt should ring alarm bells. If you mean university graduates, they'll have no track record to speak of and I'd be very wary of lending even 90% to anyone until I'd seen one - having saved up a deposit is a good start.

[d000hg]

100% mortgages have helped get us where we are today.

100% mortgages given to the wrong people. Lots of people starting professional jobs have no savings (in fact £10s of thousands of debt) but do have good salaries.

[HairyArsedBloke]

Prices are still very inflated and renting is way cheaper. FTB's need to save a decent deposit, just like it used to be. No quick fixes please.

You going to get one whether it is good for you or not.

[Turion]

Prices are still very inflated and renting is way cheaper. FTB's need to save a decent deposit, just like it used to be. No quick fixes please.

[stackpole]

Save up the 10% or get something cheaper. Prices are coming down so wait.

If you can't afford to save 10% you are buying beyond your means.

100% mortgages have helped get us where we are today.

[d000hg]

Thing is if you don't have a deposit you have to rent, and that can easily cost more than the mortgage payment would be... making it harder to get a deposit unless your salary is very large compared to the house you live in.

I do agree it's better to have a decent deposit, but 95-100% mortgages make sense as long as the banks are careful who they give them to...

[shoes]

"Mortgages are affordable if you can get one. Having to have £20,000 deposit is a killer for most new buyers."

Poor people, know your limits.

[Spacecadet]

About time the credit crunch made the roads quieter.

It already is having an effect!

[BrilloPad]

"Mortgages are affordable if you can get one. Having to have £20,000 deposit is a killer for most new buyers."

http://www.telegraph.co.uk/finance/p...What-next.html

Well assuming that 20k = 10% of 200k (10% deposit, 200k average house price) : getting 10% of £130k should be easier?

Though I would make it illegal to have any mortgage where you did not put down 25%.

If youngsters have trouble saving they can give up their cars. About time the credit crunch made the roads quieter.