Proposed mortgage cap 'suicidal' say 'property experts'

Max_Headroom_3

Really2 wrote: »

Was that not i was implying.

At 3X single or 2.25X joint a single person as the same buying power as your average working couple.

I'm obviously missing the point. Why is that a problem?

Max_Headroom_3

Pobby wrote: »

You know, reading all of this, I have to wonder if all this property crisis could have been averted if
1. Deposits of a minimum of 10% had been required ( just like the old days )

2. Loans were based on strictly 3.5 x salary ( just like the old days )

Hmmm, I wonder!

A very good question indeed, and hence my comment above that we need to learn from the mistakes made.

whathavewedone

Sorry Dopester but your comment made me really angry.

I rented rooms in shared houses until the age of 31 and did not look on it as "suffering". I looked on it as a natural progression as an adult. Leave home, find somewhere affordable to live, get pay rises, save money, buy 1 bed flat, get married, sell flat, have baby, buy house.

If me, my husband and our two children were to lose the 100k we put down on our house (well £116k actually as we put in an extra 16k in October to mantain ltv), all the money we have spent on our house (from our own savings not borrowings) such as a new bathroom, redecorating, removing 8 40 foot conifer trees for our garden, making garden good after said removal, plastering, electrical work etc and lost our home AND owed the bank 100k plus after that (which is quite possible if this rule is implemented as stringently as some of you would like) that would be suffering.

And do you know what? We don't deserve it. Because we aren't greedy. We've done our time renting grotty rooms in grotty houses with people who don't clear up after themselves. We're 38 years old with 2 small children. My oh has a damn good job and works hard - so did I before I had children.

So I'm afraid I don't agree that we should be dumped out on the street, put into emergency housing and owing the bank more money than we could hope to pay back in our lifetime. We don't owe a penny other than our mortgage. We saved hard for a good deposit.

You all want to believe that everyone who bought in the last 5 years has untold debt, borrowed 8 x income, lied about their income and had no deposit. Well it's not true. The majority are families just like us who wanted nothing more than a secure home for their children and didn't want to wait indefinitely for it. Why should we have done when we could afford to buy anyway?

Really2

Max_Headroom wrote: »

I'm obviously missing the point. Why is that a problem?

Nothing if you don't mind massive demand on family size homes.

Single person £40K = £120K mortgage

couple £40K and £14K = £120K Mortgage

Average couple £25K and £18K = £97K Mortgage.

Single person based on those figures are the best bet for larger propertys.

Max_Headroom_3

How would you lose that money? You still have your house and you still pay your sensible mortgage, so what changes?

piggeh

whathavewedone wrote: »

The majority are families just like us who wanted nothing more than a secure home for their children and didn't want to wait indefinitely for it. Why should we have done when we could afford to buy anyway?

Surely in the long term it would be much kinder to families such as yourselves if your mortgage payment was lower? Would that not put you on the more secure footing that you desire? How does paying more result in a 'more secure home'?

mitchaa

piggeh wrote: »

Wouldnt it be better if families did not need two wages for living costs anyway? If you could get a 3 bed semi and support your family on one wage, whilst your partner brings up your children, is this not preferable to both parents working and sending their kids to childcare?

You would still get both sets of parents working in order to provide better for their children even if houses were to become affordable on single salaries. They would just have more disposable income to treat their children with, send them to private schooling, pay for them through uni, live in nice safe areas etc

Times have moved on, we are not in the 50's era where women were housewives and men were the breadwinners. Women have career paths and ambitions too nowadays.

Nothing wrong with putting a child into nursery, in fact it is recommended for social interaction.

piggeh

Really2 wrote: »

Nothing if you don't mind massive demand on family size homes.

Single person £40K = £120K mortgage

couple £40K and £14K = £120K Mortgage

Average couple £25K and £18K = £97K Mortgage.

Average single person £25k = £75k Mortgage

Single person based on those figures are the best bet for larger propertys.

Just for balance.

Really2

piggeh wrote: »

Surely in the long term it would be much kinder to families such as yourselves if your mortgage payment was lower? Would that not put you on the more secure footing that you desire? How does paying more result in a 'more secure home'?

Can I ask in the future where does

Lower Multiple = cheaper home

Take a look at China (again)

Yes your mortgage payments may be cheaper but if you need to save for 20 years for a deposit it kind of takes the point away.

HPI can come from anywhere from money slushing around not just mortgages.

Savings Culture etc.

Do people realy think this would stop HPI? I don't and for once we have an example (Sorry again) China

piggeh

mitchaa wrote: »

You would still get both sets of parents working in order to provide better for their children even if houses were to become affordable on single salaries. They would just have more disposable income to treat their children with, send them to private schooling, pay for them through uni, live in nice safe areas etc

Times have moved on, we are not in the 50's anymore where the women were the housewives and the men were the sole breadwinners, women have career paths and ambitions too nowadays.

Nothing wrong with putting a child into nursery, in fact it is recommended for social interaction.

If both parents wish to work then fair enough, but it should be a lifestyle choice not a prerequisite to being able to afford to live.

Why do you feel I was talking about the woman of a relationship staying at home? I used the word 'partner' to avoid any need to deviate into discussions about sexist attitudes so as to keep this on topic.