Mortgage advice

Amokachi said:
The deposit we've saved amounts to 85% of my salary so I'd just keep saving if they were that low!

Feels like a catch 22 now for first time buyers like us.
Buy now on a high rate (and it is high affordability wise - see graph above) before the rates go even higher.
Or wait, saving a bigger deposit but then paying even higher rates than now in a year or two anyway so savings are wiped out.
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Daughter is in a similar position, all be it on her own, has just gotten into a position with her deposit to start looking and this shit happens, her mortgage in principle comes to an end (not sure if they have to honor that) and increases where by she has to buy at a lower price, nothing will be in her price range soon, as you say catch 22.
 


Will e said:
Daughter is in a similar position, all be it on her own, has just gotten into a position with her deposit to start looking and this shit happens, her mortgage in principle comes to an end (not sure if they have to honor that) and increases where by she has to buy at a lower price, nothing will be in her price range soon, as you say catch 22.
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They won't honor the AIP mate unfortunately (if she got it before the budget). Happened to me. It's very frustrating.
We've had to throw another 3k onto the deposit just to meet affordability, we're still very much 50/50 on whether to go ahead.
 
safcsafc said:
I’d just buy when you’re ready. Over the long term of a mortgage, 25 year plus, you are going to get changes to rates and property prices both up and down. If it’s a long term home, affordable and not something you’re looking to sell on quickly then it will always beat renting over the same period imo. Trying to predict the market and when is best to buy is a gamble imo.
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This. I normally hold the view that if you can afford it while rates are high (and historically they’re not “high” yet) then you can afford it when rates drop in the future. Just make sure you factor in other debt and expenditure payments when assessing what you can realistically afford to buy.
 
Going to be some repossession happening going by the latest rates. We been offered these on 98k over 15 years.

Currently on 1.79% £607/month.

5.45% is £798 per month
3 year fixed rate @6.19% £836 per month
5 year fixed rate @5.39% £795 per month

We were going to move to A 4 bed detached at around £280k ish. Mortgage of 200k ish. Can fuck that off now. No chance I’m paying that.
 
Fletch said:
Well if it’s the Broadway fella he def gave me the wrong advice

Anyway ….

What % deposit do young ones out down on first homes nowadays ?
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5% new builds, banks want the government to extend guarantee up to 80% ? For defaults, which is due to expire 2022, if not extended it will probably cripple house building/construction and have a massive knock on effect on the rest of the economy
 

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