3 times salary! How ridiculous!

hamstercheeks_2

it's best to stick to what they advise - what if you lost 2 of your jobs? never be smug.

This was the max formany years and the fools who went well over and above that are now probably paying the price now by way of repossession

david29dpo

The "want it now pay later" know no different. 3 time income worked well years ago, until the greed set in.

Feline_friendly

poppysarah wrote: »

I would estimate that the OP is under 30.

Some people have not grown up and known anything but acceptance of high (insanely so) house prices.

Cheap rents and cheap housing makes for a stronger, better, more resilient economy.
High house prices and rents have led to the virtual destruction of the UK's banks and banking system.

I am 36 and have seen property prices rise and fall twice now. A good example was my parents. They bought a new biuld in 1972 for £3000....in the late 80's it was worth £60K then the recession of the early 90's made it fall to £35K.....my dad sold it 2 years ago for £120K...makes you think what will happen to the market from now

prowla

Yes, it is ridiculous - 3x salary is too much!

PasturesNew

What if the OP has a heart attack from doing 3 jobs and everything else ... leaving them unable to work at all and the partner has to give up work to be a carer/look after the kid.

At 3x salary, you've got more chance of being able to cover that around the changed circumstances. Especially 5-10 years down the line.

stevetodd

If you go onto the FSA website and read the Turner report you will see that it is not necessarily going to impose regulation and if it does it will vary throughout the economic cycle. So it probably would not impose a 3x salary rule until we were near boom times trying to stop prices going too high

poppysarah

I spose 3X salary is as silly an idea for some people as saving a deposit though
;-)

clk299

Well, I earn at the top of my profession for my level, inner London, and have a 30k deposit, and I would still only be able to afford to buy somewhere at about £110k allowing for fees and furniture. Which would buy me a studio flat in an undesirable area, if it were to be within acceptable distance of work...

hamstercheeks_2

it's not just the x3 salary - they will most likely and probably want you to put down a desposit as well

it's an expensive business buying a house

there's the legal fees - admin costs for arranging the mortgage - this usually comes to a very sizeable amount

I moved last year - cost me £4k legal fees (granted this was buying and selling) and an additional £500 to holdthe mortgage for me etc - it's money, money, money left right and centre when buying a house

not moving for a very very long time:cool:

poppysarah

clk299 wrote: »

Well, I earn at the top of my profession for my level, inner London, and have a 30k deposit, and I would still only be able to afford to buy somewhere at about £110k allowing for fees and furniture. Which would buy me a studio flat in an undesirable area, if it were to be within acceptable distance of work...

Don't work in London then!

There's a huge wide world outside London you know.