Nice mortgage calculator

chucky

Graham_Devon wrote: »

Hehe, nice try, back to that line.

I've not even put my income down.

you said you were £30k short for that starter home; so the salary couldn't have been enough or the salary didn't allow you to save for the deposit.

it's a serious point btw.

IveSeenTheLight

Graham_Devon wrote: »

Average House Price vs Average Wage (mean, to be nice to bulls).
36k Wage. £158k Average price.
I would need a deposit of £40,000.
So not exactly level there as Barclays would lend me £118k.
Again, with the most unrealistic average wages.....36 for the bloke, 16k part time for the female. I would still need a deposit of 40k.
Hmmm. So, how, chucky, are average houses affordable by average wages?

Again, your not stating things as they are Graham.

I checked the calculator.
On £36k for a property of £158k, you would need a £32k deposit.
Remember you are not borrowing £158k
This equates to a 20% deposit

Barclays would lend you £180k, but you would need a £45k deposit to get that level of funding (25% deposit, house price £225k)

ad9898_3

chucky wrote: »

maybe you should get yourself a better paid job or even re-train in something that pays better.

if that doesn't work maybe move to another area that will be in your budget for that starter home

Maybe it would be better if house prices continue to fall to affordable levels, the current and the next generation will have enough to pay for in higher taxes, I doubt whether they will be up for paying for the current generation of homeowners to live the life of riley in their old age as well.

Graham_Devon

chucky wrote: »

you said you were £30k short for that starter home; so the salary couldn't have been enough or the salary didn't allow you to save for the deposit.

it's a serious point btw.

Yer, so your stating that I should change my life, to earn over the 40% tax bracket for high earners, to buy a "starter home"?

Do you not agree thats a little screwed up?

MrDT

Graham_Devon wrote: »

I used a wage of 30k, on my own, which told me I could have a mortgage for 90k. I wanted to borrow £130k though (based this on a STARTER home, not the average home).

I'm getting 5x salary as maximum mortgage on the calculator

30k just one person - 150k max mortgage, 23k min deposit.
30k each as a couple - 300k max mortgage, 46k min deposit

The average earnings of a potential first time buyer couple in this area would be about 32k combined I reckon. You could pay asking price on a nice 2 bed ftb terraced house and get change from 100k, so well within the maximum they're willing to lend.

To borrow 79k you'd need a 20k deposit though. Saving up 20k (even between two) probably wouldn't be easy on a low wage. Especially so if renting not leeching off the parents.

I'm in a position to buy due to two things really, first - earning above average for the area, second - saving as much as possible towards a deposit.

I started saving back when 125% mortgages were being dished out left right and centre, branded a fool... Plenty will have been suckered by the 100%+ mortgages round here. I read somewhere (local bbc news website I think) that reposessions in my town were up 300% year on year in 2008. The low wages of the buyers, no deposit requirement set by the banks, and oversized 100%+ mortgages played no small part in my opinion (and the opinion of many local EAs whom I have viewed repos with)

Graham_Devon

IveSeenTheLight wrote: »

Again, your not stating things as they are Graham.

I checked the calculator.
On £36k for a property of £158k, you would need a £32k deposit.
Remember you are not borrowing £158k
This equates to a 20% deposit

Barclays would lend you £180k, but you would need a £45k deposit to get that level of funding (25% deposit, house price £225k)

Erm, no.

Go do it youself. Put in 36k, say you want 158k (thats the mortgage you want, thats the property price, there is another tab for other calcs) and it statees you need a 39k deposit.

Everyone can do this right now http://www.barclays.co.uk/mortgages/

Do it yourself, and then try and tell me how I'm making things up.

chucky

Graham_Devon wrote: »

Yer, so your stating that I should change my life, to earn over the 40% tax bracket for high earners, to buy a "starter home"?

Do you not agree thats a little screwed up?

i'm suggesting an option for the immediate problem and how someone could address it if they felt the need to. i had to do that to maintain a lifestyle so am just putting my view across.

ad9898 wrote: »

Maybe it would be better if house prices continue to fall to affordable levels, the current and the next generation will have enough to pay for in higher taxes, I doubt whether they will be up for paying for the current generation of homeowners to live the life of riley in their old age as well.

maybe that will be the case - we don't know. i'm not saying that high house prices are a good thing and have never said that.

roseland69

See, I'm still getting that sense of self-righteousness from some posters about what you need to EARN. "You don't earn enough" as a kind of put down to them, as a person. No, that's not the problem really. The problem really is that prices are TOO HIGH. And I'm talking as someone who has benefited as we just sold our place and retained a heafty chunk of equity.

Because I'm not worried about ME. I'm worried about my kids and what the hell they are going to do when they get to an age they want to buy somewhere. If these "house prices must go up" bozo's have their way, you'll have to be a millionaire before you can afford to buy a shoebox. I don't want that for my kids. I want for them to be able to afford an average semi to bring up a family and focus on their lives rather on their status/earnings.

Some people are so selfish they don't see it. I pity them.

StevieJ

ad9898 wrote: »

Maybe it would be better if house prices continue to fall to affordable levels, the current and the next generation will have enough to pay for in higher taxes, I doubt whether they will be up for paying for the current generation of homeowners to live the life of riley in their old age as well.

Either people can afford it or they can't, where I live I believe that people can afford it. maybe with some comprise, although I would suggest a compromise here would be much nicer than a compromise in London, no offence to you Londoners out there

Graham_Devon

roseland69 wrote: »

See, I'm still getting that sense of self-righteousness from some posters about what you need to EARN. "You don't earn enough" as a kind of put down to them, as a person. No, that's not the problem really. The problem really is that prices are TOO HIGH. And I'm talking as someone who has benefited as we just sold our place and retained a heafty chunk of equity.

Because I'm not worried about ME. I'm worried about my kids and what the hell they are going to do when they get to an age they want to buy somewhere. If these "house prices must go up" bozo's have their way, you'll have to be a millionaire before you can afford to buy a shoebox. I don't want that for my kids. I want for them to be able to afford an average semi to bring up a family and focus on their lives rather on their status/earnings.

Some people are so selfish they don't see it. I pity them.

I too, have my own mortgage

It was just an insult line.