Proposed mortgage cap 'suicidal' say 'property experts'

Really2

piggeh wrote: »

I've never argued against BTL fwiw.

You will be cast in to the world being whipped with rental agreement for saying such things.:)

piggeh

Really2 wrote: »

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

your point was initially;

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)

You then followed it by an example in which two people were not in full time work but were still able to, 'in reality', match a single person's position, despite not being in full time work. My point was you were appearing to contradict yourself.

piggeh

Really2 wrote: »

You will be cast in to the world being whipped with rental agreement for saying such things.:)

Probably I should maybe find a girlfriend pretty quickly

I think these prejudices of mine/yours (guess you maybe have a family, whereas I am single) mean we will not agree on this

edit: prejudice probably the wrong word, I mean 'self interests'. It is natural to defend your syle of living and want the best I guess.

lostinrates

piggeh wrote: »

I've never argued against BTL fwiw.

And you are not the only one.

Poorly financed, shoddy landlords with a get rich quick schemedon't seem a great thing, but responsible and good landlords, it would seem to me, form a useful part of property provision

chopperharris

My take is from 3x for single and 5x joint or reversed depending on the maths gurus numbers , 15-30 year term , combined with deposit saving too.The more saved as a deposit the less you are paying back in both the time needed and monthly payments , thus more expendable income that is supposedly needed for consumer goodsover a longer term...and unless my take is wrong longer consumer spending is better than short term savings to hmg.

The arguments about overheads of single v couple is bang on , spending income is less with having children its a certainty.So IMO realistically a mortgage could/should be lower in amount taken/given , or in the cost of the home itself , and also its longer to repay for that segment despite having two incomes...so there is justification in lowering the multiple for that section not increasing it.And the risk factor is higher too with a 50 percent separation rate.

From my german friends thier mortgage system is not in the same vein , its 100 year and thus lower costs than even renting.The home is not an investment vehicle , its a roof over your head , and at times other family members take over the home and mortgage.It can also be leasehold , which is essentiallly renting anyway.This is where maybe they have it right and will be shown to weather the storm better than we will....maybe that arrogance is justified.

Really2

piggeh wrote: »

your point was initially;



You then followed it by an example in which two people were not in full time work but were still able to, 'in reality', match a single person's position, despite not being in full time work. My point was you were appearing to contradict yourself.

No, My initial point was that a working family (couple) was likely to only afford the same as a single working person on the same wage as a highest earning person in a family unit. (you may have to go back a few pages)

I then put the figures down that if both were in fulltime they would only just able to outperform a single person.

I then had to make the point about a family unit again.

So the only thing that contradicted what I was saying was having two adults in full time work for a family unit;)

Really2

chopperharris wrote: »

The arguments about overheads of single v couple is bang on , spending income is less with having children its a certainty..

mmmm I seem to remember most single people go out most weekends.
(also gas, electricity, council tax are not more when you are a family)

I spent more when I was single than as I do as a parent.

But it is a lot easier to lie if you are single as you are withdrawing cash not spending via standing orders etc.

But perhaps we should look at longer mortgages for familys.

3x Salary 20Y term for single
3X joint 30Y term.:)

piggeh

Really2 wrote: »

No, My initial point was that a working family (couple) was likely to only afford the same as a single working person on the same wage as a highest earning person in a family unit. (you may have to go back a few pages)

I then put the figures down that if both were in fulltime they would only just able to outperform a single person.

I then had to make the point about a family unit again.

So the only thing that contradicted what I was saying was having two adults in full time work for a family unit;)

phew, well I'm glad I put 'appearing to' I know what you're saying. Still, if they can 'just' outperform a single person that's ok with me :cool:

(I have probably contradicted myself with that statement now..)

before_hollywood

3x income is an ideal multiple, but all house prices have to come down in line or there are no upwards chains.

its all well and good saying a ftb like me can get somewhere on these ratios (and i will, i will make sure of it) but the person i buy off has to have somewhere to go to, and the person they buy off has to as well

chopperharris

Really2 wrote: »

mmmm I seem to remember most single people go out most weekends.
(also gas, electricity, council tax are not more when you are a family)

I spent more when I was single than as I do as a parent.

But it is a lot easier to lie if you are single as you are withdrawing cash not spending via standing orders etc.

True singles have more to spend , thats what I said , theres less overheads.So they spend it on what they want , not what they need ie nappies , kids clothes etc.But they do still have standing orders for the same things are families , just not in the same amount.

sorry you are wrong , utilities are more for families as is the cost of feeding more than one person.Council tax is less for singles , electricity and gas is less on a sinlge persons flat than say a family home.