What multiple would you borrow?

bluey890

nearlynew wrote: »

I don't care how you respond to this post or what economist you quote, I can confidently predict that average house prices will be lower this time next year.

100% correct and gauranteed.

65% of percentages are made up...
99% of people know this to be true...

nearlynew

bluey890 wrote: »

65% of percentages are made up...
99% of people know this to be true...

and the other 45% couldn't care less

Harry_Powell

nearlynew wrote: »

So wait and take proper advantage.

Prices are nowhere near the bottom yet.

Time and patience are your best weapons.

We are.

Perhaps you missed this part of my post: "we're in no hurry to move out of rented accomodation and buy"

Every month that passes we see small percentage falls in prices, we see our savings increase by a few hundred quid and we know that nicer and nicer houses are dropping into our price range.

As I said on a different thread, I'm expecting 40% drops from peak, so a bit further to go yet. Unless a bargain comes along, we're in no rush to buy.

LilacPixie

we will probably be buying between 3-4 times joint depending on what the house price of the houses and area we want are at at the time (currently 4.2 times joint not including our deposit).

We both have stable jobs, have a young family and we will be moving once and for ever. I think we will start seriously looking this time next year.

loueyn

3.5 % would give me and the other half an affordable monthly repayment rate even if the interest rates skyrocketed. But obviously if we can afford a house by borrowing even less we'll be going for that option!

GracieP

I voted less than 3x because the thing is that even those with secure jobs can't be guaranteed they won't be asked to take pay cuts in the next year or two. Or that PAYE rates won't rise, significantly lessening incomes. So you could take a 3.5x mortgage this year, but in 18 months you could find yourself with a 5x mortgage because your income has dropped.

Not that I intend buying for another year or two.

Gorgeous_George

Lower earners can afford lower lending multiples. Sadly, their borrowing requirements demand larger multiples.

A couple employed by one employer, or in one industry, is a higher risk than a couple each employed separately.

Personally, I'd be happy to borrow 5x or more if the interest rate was fixed at 0.5% or thereabouts.

If houses had cost 5x my income when I first bought (1985) and assuming a lender would have offered to lend me it, I would have borrowed as much as I could afford to repay - unless I'd believed prices were about to crash. I bought at the age of 22 and doubt I would have believed the HPC brigade at such a young age.

GG

MORPH3US

nearlynew wrote: »

I don't care how anyone responds to this post or what economist they quote, I can confidently predict that average house prices will be lower this time next year.

100% correct and gauranteed.

I can't believe (s)he got thanked twice for that post :rotfl:

Or was it because it was so stupid that it gave you a good laugh?!?!?

chucky

bluey890 wrote: »

65% of percentages are made up...
99% of people know this to be true...

nearlynew wrote: »

and the other 45% couldn't care less

it should be the other 35% couldn't care less

chucky

Harry_Powell wrote: »

As I said on a different thread, I'm expecting 40% drops from peak, so a bit further to go yet. Unless a bargain comes along, we're in no rush to buy.

do you see this applying to your local area and all property types or the property type you're looking at?

i'm curious to which area you are in.