When it comes to buying homes, it’s back to the future

Regarding comments that banks should not be pressured to increase their LTVs (Mortgage Strategy Online), the maximum you could get in the 1970s was 90% LTV.

This was subject to borrowers having saved a 10% deposit with the lender concerned and taking on a mortgage indemnity guarantee for 15% of the value of the property.

Stamp Duty was payable on all purchases over £15,000 and there were few houses cheaper than this. Also, mortgage payments were higher in relation to salary than they are now because mortgage rates were up to 14%. There was only one product available and that was the SVR.

Another difference between then and now is that a car was a luxury. I had to make do with an old rust bucket, all my furniture was second-hand and I had a black and white television.

There were no credit cards and we had to put down a deposit on everything.

There was no interest-free credit and overdrafts weren’t permissable. If you wanted to buy a house you had to give up luxuries.

That’s how our parents had to do it and that is what we must accept will be the way forward.

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