asprilla

http://news.bbc.co.uk/2/hi/business/8454455.stm


Perhaps I am missing something obvious or maybe someone in the UK can enlighten me. Why can't this couple save up the 20k ?

Sally Redux

It does seem odd as they can 'more than afford to pay a mortgage.'

eugene43

I think someone should enlighten them anyway my answer is no way would I give them a morgage in the first place there bank is right how are they going to commit to a morgage if the cant save now.

Centurion

Because to suggest actually going without and saving in today's society would just not be acceptable.

We struggled to get our first deposit together and crapped ourselves that we would be able to pay the mortgage. Some people seem to think that today's situation is somehow new.

moneypenny20

I hate that attitude - save for something when some bank/building society will lend it to me and I can pay forever? Why would I do that!!! Some people seriously believe that and it's just wrong.

If we can't afford something we don't get it, simple. We want something, we save for it. A mortgage is obviously different but we've still saved like lunatics to pay as much as possible up front.

iolande

we struggled saving as rents were so high . . . But if we had a mortgage the monthly payments would be a decent whack lower than the rent we pay now. So if we had a mortgage we would be able to afford it much more then our current rent!

asprilla

in australia it is generally the other way round. Renting is usually far cheaper than paying a mortgage.

iolande

We're finding that a mortgage at 6% for a 3-bed townhouse at $300,000 is going to be around $1300 a month to pay off. Rent is around $300 a week for the same. (We are on the Gold Coast now). But . . . and this is a big but. The mortgage will get us something in good condition, the rental properties we have seen don't seem be kept anywhere as well.

The only difference is that we would have to pay body corporate and council rates on top of the mortgage, so here it is looking a bit more expensive to buy. At least after 30 years we will get something back!

asprilla

I just had a quick look at the mortgage calculator, it says $1798 per month for a $300k loan over 30yrs at 6%. Definitely far more expensive than renting.

iolande

oh - I was just quoting what the guy at ANZ told us.

Lord_Farquar

Why should they have to pay the bank 30% deposit though?

bcworld

Not sure why you'd need a UK based explanation...surely the same mentality exists here, where in fact first home buyers are simply handed cash on a silver plate. I'd hazard a guess that low deposit home loans are currently much more attainable in Australia as well.

Lord_Farquar

Let's not forget the Government(s) actually encourages first time home buyers to spend their cash.

spottydog

Sounds good, in 10 years time, assuming interest rates don't vary massively you'll probably find your mortgage a lot cheaper than the rent cost for the same type of place given that rent tend to be subject to inflation.

asprilla

I have never noticed any equivalent stories in the papers over here (couple earning $80k between them want a $180k mortgage, but they can't save up e.g. $35k cash). I believe a uk based explanation is required for this one.