Seen as I had no real debt, was miles away from my pension and didn't own a house when the financial crisis hit I thought it had no real effect on me. I guess it did indirectly, wages not increasing and the like but I didn't really feel it the way others did.
I sure am feeling it now though! The removal of 100% mortgages is costing me thousands of pounds a year and I'm getting super frustrated by it.
I had never really been interested in buying a house before, I knew I didn't want to live where we used to live and knew I didn't have the money to pay out if something went wrong with the house, although I could have afforded the mortgage had I wanted one because if you can afford to rent you can certainly afford mortgage payments. My dad tried and tried to bully me into buying a house and I resisted because I didn't want stuck living somewhere I didn't want to be. Oh how I wish I had bought something with a 100% mortgage and just sold it when I moved, if only it were that easy.
I know deep down I was being sensible, I wanted to get a decent job and be settled in an area before committing and that's exactly what I did but now I am suffering for being sensible. Had I bought my flat in my early 20's which was offered to me for £44000 my mortgage would have been buttons each month and I would have had a flat to sell when we moved here. I wouldn't have needed a deposit and my monthly payments would have been around half my rent payment. I wasn't interested though and to be fair my early 20's were not my most stable from a financial point of view so maybe I did make the right decision.
However now I find myself in the same position as many first time buyers these days. I have a good job and am fortunate to earn enough where I would easily get a mortgage large enough to buy a pretty nice flat in the area we currently live while the prices are as low as they are just now. However I also live in a pretty expensive rental area and therefore cannot save for a deposit.
The bank had the cheek to tell me they would offer me a mortgage which was great news of course, but I need to find thousands of pounds for a deposit first. They then had the further cheek to ask if I needed another loan (I have a bank loan already) and tell me they would offer me up to £15000 of a loan as long as I paid my current one off with some of the money. However I cannot use the loan for a deposit because that's against the new rules, despite the fact that the loan and mortgage together would actually cost me between £100 and £200 less a month (depending on the price of the house of course) than my current loan and current rent payment cost put together.
I fail to see the logic here. I can afford to do this, in fact it would save me money, plus I would no longer be paying for a house we do not own. Since moving here four years ago we have paid almost £20000 of rent! Say I bought a £50k flatt, I would have paid nearly a quarter of it off by now (minus interest obviously) it beggars belief really.
It is made more frustrating by there being the perfect flat for sale just round the corner from us which is well within our price range and exactly where we would want to live. If we could get a 100% mortgage on it we would be paying around £150 less than our current rent each month. I just don't understand how this makes sense? We are not a massive risk to the bank given that my job is as secure as it gets these days and they clearly think I can afford the mortgage on my own or else they wouldn't have offered me one myself in the first place surely? However because we don't have £3000 sitting in the bank doing nothing we stand no chance.
So I guess my question is - does anyone have £3k they want to give me? that seems to be the only chance we have