We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Nice mortgage calculator
Comments
-
Prices are high because people can afford them - not everyone but enough to buy up the available houses. Only way for prices to be more affordable is to make more houses available.
For example, if we had sky high interest rates prices would be lower reflecting what people could afford to pay, however it would be the same people as now who could and could not afford to buy.
Or another example, suppose prices were only 50% of what they are now, a lot more people would now be able to afford to buy a house than their are houses available so how would they be shared out? Waiting lists? A lottery each time a house came on the market?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.I think....0 -
Graham_Devon wrote: »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.
Graham,
It's not worth explaining to you, as you really just cant grasp the simple economics of it, but here goes
If you have a loan for £158k + a deposit of £40k, then you can get a property worth £198k.
The loan is still only £158k
If you query this then it really is time to hit my head against a wall
[pre-empting graham] :wall::wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Graham_Devon wrote: »Ok, you buy house at £150k.
You have put down £40k as a deposit.
Your loan therefore is £110k.
Your wage is £30k.
Your loan is roughly 3.8x your wages. Not 5x.
That's the way I have been reading it, as when I bought my house, the mortgage was always based on the cost of the house, then the deposit was taken off the total loan.
Go look at the calculator again.
Your getting a loan of £150k.
If you then deduct your deposit, then your not needing the £150k loan do you
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
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 am a parent and agree with most you say but unfortunately unless we build lots of houses near where jobs are or kill off the elder population HPI is going to be a problem.
Unfortunately on this island e have a shortage of family homes to purchase and that situation looks like it is going to be worse because of the credit crunch not better.
And before being accused as a HPI Bozo. I think house to be affordable for the many would be great.
But from what i can see their are not enough property's for the people over the average wage never mind those below it.
This is good for no one, the people who can afford have to stretch them selves and you have a high amount of people who can not buy.
But if we keep producing an ever increasing population it is just going to get worse.0 -
Graham_Devon wrote: »Ok, you buy house at £150k.
You have put down £40k as a deposit.
Your loan therefore is £110k.
Your wage is £30k.
Your loan is roughly 3.8x your wages. Not 5x.
That's the way I have been reading it, as when I bought my house, the mortgage was always based on the cost of the house, then the deposit was taken off the total loan.
Ok agree with everything you say there, but that's not what the calculator says.
Clearly asks how much do you want to borrow (not what is the purchase price of your house) on the 150k slider
Price = Mortgage + Deposit
Mortgage borrowings of 150k (for a 188k house, which is irrelevant) when earning 30k, is a 5x salary multiplier.
It's a bit confusing really, screenscraper mortgage sites like moneysupermarket etc invariably work the way you expected this one to i.e. enter house price, enter deposit you have, the site then works out the amount you need to borrow. The barclays calculator seems a bit !!!! about tit 0 -
IveSeenTheLight wrote: »Go look at the calculator again.
Your getting a loan of £150k.
If you then deduct your deposit, then your not needing the £150k loan do you
No your correct there, it is 5x.
Which only makes the situation even worse!0 -
Graham_Devon wrote: »No your correct there, it is 5x.
Which only makes the situation even worse!
so not only can average house owners buy an average house.
average wage earners can also buy an average house.
if it's worse or better i don't know but it happens.0 -
so not only can average house owners buy an average house.
average wage earners can also buy an average house.
if it's worse or better i don't know but it happens.
Average wage earners cannot buy an average house no.
Worth remembering I was using the 36k average here, too be kind
Not unless they have 40k tucked away. Which the average person does not.
Average house owners.....I'm not even going there.0 -
Graham_Devon wrote: »Average wage earners cannot buy an average house no.
Not unless they have 40k tucked away. Which the average person does not.
Average house owners.....I'm not even going there.
no problem i've changed it now
so not only average house owners buy an average house.
average wage earners with a 20% deposit can also buy an average house in the UK0 -
no problem i've changed it now
so average house owners buy an average house.
average wage earners with a 20% deposit can also buy an average house in the UK
*Some* average wage earners could yes, as this was based on the mean 36k which less people earn with a 20% deposit, yes
If the bank actually loans the money, which after all this bickering, is probably unlikely
If we look at the REAL average, which I believe was 28-29k? Then, definately not, no.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards