does a sensible mortgage get a sensible priced house ?

geoffky

I think the answer has to be no..consider the ave wage is 20k take home for most people and look what a factor of 3.5 gets you...still a long way to go before we are back to true affordability levels...

Really2

geoffky wrote: »

I think the answer has to be no..consider the ave wage is 20k take home for most people and look what a factor of 3.5 gets you...still a long way to go before we are back to true affordability levels...

Mortgages multiples have never been based on take home.(they should be afordability is better than any multiple)

What is true affordability

£80K at 15%

or

£166K at 5.5%

chucky

depends where you live and depends how much you earn and what kind of property that you want.

http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/tab7_7a.xls

it was mentioned yesterday that you needed £44,500 to be able to buy a property in 2007 - that could have been joint income.
that would get you a property for £155,750 + deposiit on 3.5 times income now.

if you can't afford to buy i guess you'll just have to rent until you can afford to buy or sit and wait to see if house prices drop tpo your salary level.

Graham_Devon

Depends totally on where you live.

In Sheffield, yes, it gets you a decent home.

In reading, no.

Degenerate

chucky wrote: »

it was mentioned yesterday that you needed £44,500 to be able to buy a property in 2007 - that could have been joint income.
that would get you a property for £155,750 + deposiit on 3.5 times income now.

Average house price now = £151K according to Nationwide, £157K according to Halifax. Looks affordable to me. Are the housing bears all just bitter people in low paid jobs?

Cleaver

Well, for pretty much any couple living north of Birmingham where both parties are on £20k, they could get the following for a 3.5 multiple:













It's just a shame that you get down south and £140k will buy you these:







Ahh well. Everyone should just live oop north. The people are friendlier, the pies are nicer and we have proper, sensible haircuts. Jobs a goodun.

Degenerate

Cleaver wrote: »

Ahh well. Everyone should just live oop north. The people are friendlier, the pies are nicer and we have proper, sensible haircuts. Jobs a goodun.

Darn Sarf wages are higher too. £30.5K average in my town.

Graham_Devon

Degenerate wrote: »

Darn Sarf wages are higher too. £30.5K average in my town.

No they are not. Only in London and surrounding areas.

Everywhere else is below the average wage that the government uses.

chucky

Degenerate wrote: »

Average house price now = £151K according to Nationwide, £157K according to Halifax. Looks affordable to me. Are the housing bears all just bitter people in low paid jobs?

don't forget that this 3.5 times multiplier changes by year 10 of your mortgage.

you will be earning more and the multiplier will probably be less than 2 times the mortgage value minus repayments already made.

Cleaver

Ahhh, I can see this getting towards my most favourite all-time debate on these boards: the average national wage.

"It's 12k in my town. I know this because I do".

"38.9k across the country. I worked it out by asking everyone and dividing it by the number of people I asked."

"I tend to use the (pr + 1 − 1)/2 / g(k) = 2k + [(3/2)k] equation when looking at average salary. When p = call centre wages and g = average London wage. It's really the only viable option."

Conrad

In the past contributing to a pension was more widespread. Now people use that money to invest in bricks and mortar.