Proposed mortgage cap 'suicidal' say 'property experts'

Really2

piggeh wrote: »

Just for balance.

Perhaps now you know why house prices will always be over average wage.;)

Over 10M people earn over the average wage.;)

Really2

piggeh wrote: »

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.

Home ownership is a lifestyle choice.

Why should you penalise two people for being together and working when being single is also a lifestyle choice.;)

Are we saying 2 people buy two 3 bed houses. They then meet each other and move in.

They then have one spare house! The future of BTL?

chewmylegoff

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.

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

no it wouldn't because

(i) average couple £25k and £18k, the single would only be able to borrow £75k.

(ii) although there are situations where a couple may be able to borrow more based on 3x one salary than 2.5x joint salary, it won't make demand for property any higher, they aren't going to split up and buy separate houses, they'll just get the mortgage solely in the name of the person with the higher salary...

even if they do split up, still only one house is going to be purchased because the person on £14k cannot afford one. hence demand is unaffected.

piggeh

Really2 wrote: »

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

I stated when this first came up in the original thread - simply putting a multiplier cap on mortgages will not be an effective way of making homes affordable, there will be ways round it and the banks will always look to lend more, use any loophole etc, in order to meet targets because of the nature of their business.

That doesn't mean I cant see the benefits of low house prices though, if they did come up with a mechanism that worked effectively then it would be beneficial to all IMO. Therefore I'm entirely in favour of such caps, albeit as part of a wider package that stops banks irresponsible lending as a whole.

I take your point about deposits, I guess that could happen.

piggeh

Really2 wrote: »

Home ownership is a lifestyle choice.

Why should you penalise two people for being together and working when being single is also a lifestyle choice.;)

Are we saying 2 people buy two 3 bed houses. They then meet each other and move in.

They then have one spare house! The future of BTL?

No harm in that Surely they'd prefer it?

Really2

chewmylegoff wrote: »

no it wouldn't because

(i) average couple £25k and £18k, the single would only be able to borrow £75k.

(ii) although there are situations where a couple may be able to borrow more based on 3x one salary than 2.5x joint salary, it won't make demand for property any higher, they aren't going to split up and buy separate houses, they'll just get the mortgage solely in the name of the person with the higher salary...

even if they do split up, still only one house is going to be purchased because the person on £14k cannot afford one. hence demand is unaffected.

So two people need to be in full time work to be able to just out perform a single person.(so in reality due to costs familys would have to buy smaller homes than single people due to other costs)

What happens when children come along.

£25K + £8K (part time) + 2 kids = £75K;)

Sorry 3X single or 2.25X joint plays stright in to the hands of single people unless couples work fulltime for life.

Really2

piggeh wrote: »

No harm in that Surely they'd prefer it?

OH BTL is OK if it is done by this.

This site as the best hypocrites.

piggeh

Really2 wrote: »

So two people need to be in full time work to be able to just out perform a single person.(so in reality due to costs familys would have to buy smaller homes than single people due to other costs)

What happens when children come along.

£25K + £8K (part time) + 2 kids = £75K;)

Sorry 3X single or 2.25X joint plays stright in to the hands of single people unless couples work fulltime for life.

Oi Your example once kids come along shows that a family can still compete with a single person on mortgage terms. ie they can both get £75k.

Really2

piggeh wrote: »

Oi Your example once kids come along shows that a family can still compete with a single person on mortgage terms. ie they can both get £75k.

So you think a Couple with a family and working should only be able to afford the same property as the equiverent single adult?;)

piggeh

Really2 wrote: »

OH BTL is OK if it is done by this.

This site has the best hypocrites.

I've never argued against BTL fwiw.