View Full Version : help for first time buyers.
http://www.caithness-business.co.uk/article.php?id=1199
I hope this scheme works, the sooner the market is stimulated the better.
http://www.caithness-business.co.uk/article.php?id=1199
I hope this scheme works, the sooner the market is stimulated the better.
We looked at this scheme a couple of years ago and found it to be a nightmare. The criterea to qualify for borrowing under this scheme is very strict and there are very few lenders who are willing to mortgage on such a property. Hope this has changed in the last few years since we tried to apply.
There is no such thing as a free lunch.
The general public subsidise these schemes through taxes and rates.
Thatchers's "Right to buy" policy was the main reason why we do not have affordable housing for 1st time buyers.
Thatchers's "Right to buy" policy was the main reason why we do not have affordable housing for 1st time buyers.
Can you explain why? :confused
Can you explain why? :confused
Right To Buy was detrimental because, in areas where demand for housing exceeded supply, the stock of social housing was depleted faster than it was replaced. What is the average wait for a council owned property nowadays? and how many council houses have been built in Caithness since 1979?
Greedy speculating investors were able to buy up council properties, through generous discounts from Local Authorities given for some of the least tenuous reasons, thus accelerating the cost in buying a house.
How many 1st time buyers nowadays can buy a house on the old adage
of, put 10% down and borrow 3 times your salary?
Right To Buy was detrimental because, in areas where demand for housing exceeded supply, the stock of social housing was depleted faster than it was replaced. What is the average wait for a council owned property nowadays? and how many council houses have been built in Caithness since 1979?Your first sentence is obviously correct. I don't know the answers to your questions but I suppose the lack of council or 'social' housing increases the demand for private rentals and house purchases.
Greedy speculating investors were able to buy up council properties, through generous discounts from Local Authorities given for some of the least tenuous reasons, thus accelerating the cost in buying a house.I don't follow your reasoning. Why does the black bit imply the red bit? :confused
How many 1st time buyers nowadays can buy a house on the old adage
of, put 10% down and borrow 3 times your salary?I don't know but your question doesn't answer my question. Are you simply saying that house prices have increased relative to incomes? I think we all know that and it doesn't explain why they've gone up.
Anyway, people have been able to borrow far more than 3 times their salary and pay back the loan because interest rates have been low. Isn't this obvious?
OK,I will try and clarify my point.
If someone wanted to buy a house, and nobody else wanted to buy it the price would be cheaper.
However if property was in an attractive area then "speculators/property developers" and other such people would force price up
I agree that people have always been able to borrow more than the ratio I mentioned, but, if lenders had stuck to lending a maximum of 3 times income, then maybe we would not have the financial crisis that we have at the moment, which if you recall started with American lenders "toxic debt" problem.
If anyone is thinking of taking out a mortgage now, I urge them to stick to a mortgage which they can service when rates rise. Any reputable lender will be able to provide them with an illustration of what the repayments would be at a set interest rate.
. Any reputable lender will be able to provide them with an illustration of what the repayments would be at a set interest rate.
I would hope that any housebuyer would have the wit to figure this one out on their own - if a purchaser needs someone else to do simple arithmetic on their behalf its no wonder that 'toxic' debt has soared.
Whilst working out interest only mortgages is a doddle, calculating repayment mortgages is a bit more difficult.
OK,I will try and clarify my point.
If someone wanted to buy a house, and nobody else wanted to buy it the price would be cheaper.
However if property was in an attractive area then "speculators/property developers" and other such people would force price up.
Yes but that just means that speculators and developers are abusing the system and that wouldn't happen if the right to buy was only granted to the right people. The problem you describe is with the implementation not the principle. Whether the principle is right is a different question.
Whilst working out interest only mortgages is a doddle, calculating repayment mortgages is a bit more difficult.
Yes and despite all the recent interest rate decreases I still haven't sussed out how exactly it's done. :confused
Yes but that just means that speculators and developers are abusing the system and that wouldn't happen if the right to buy was only granted to the right people. The problem you describe is with the implementation not the principle. Whether the principle is right is a different question.
Yes and despite all the recent interest rate decreases I still haven't sussed out how exactly it's done. :confused
I don't think principle of removing council properties from housing market is morally correct. If it was a stipulation that a Local Authority HAD to build a replacement house for every one it had sold then, yes I would agree.
As for calculating repayments on an interest only mortgage:
Say mortgage was 100,000 and interest was 10% (using round figures) then repayment per month would be
100,000 * .1 /12
That is amount of mortgage, times interest rate divided by 100, divided by 12 (months in year)
so in above scenario a £100K mortgage at 10% interest would cost £833.33 per month.
For a repayment mortgage it is easier to look at any mortgage comparison site than work out on calculator or you PMT formula in Excel
Hope this helps
I don't think principle of removing council properties from housing market is morally correct. If it was a stipulation that a Local Authority HAD to build a replacement house for every one it had sold then, yes I would agree.If too many houses were council owned then selling them off without replacing all of them could be justified but selling them off and not replacing any was asking for trouble. I don't see it as morally wrong if you replace the right amount.
As for calculating repayments on an interest only mortgage:
Say mortgage was 100,000 and interest was 10% (using round figures) then repayment per month would be
100,000 * .1 /12
That is amount of mortgage, times interest rate divided by 100, divided by 12 (months in year)
so in above scenario a £100K mortgage at 10% interest would cost £833.33 per month.
For a repayment mortgage it is easier to look at any mortgage comparison site than work out on calculator or you PMT formula in Excel
Hope this helps
Yes, calculating repayments on an interest only mortgage is simple but working out how they do it for my repayment mortgage is beyond me. Even trying gives me PMT. That's Pre-Mortgage Tension. :lol:
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