More average salary stats to argue over.....

andykn

Bloo_Loo wrote: »

you are assuming a person on a high salary has a equally large mortgage.

as many post here, a rich person needs only a small mortgage to buy what they want. they may splash out, they may not, either way, the figures could be well skewed.

I am looking for some facts.

Even then, as the CML aggregates figures, I can't imagine that each CML member reports total income of all its mortgagees.

I'm not sure the CML publish their methodology to non members. As I'm not the "professional" VI that some of your tinfoil hat fellow travellers on HPC like to pretend I don't actually have access to that info.

Bloo_Loo

andykn wrote: »

Even then, as the CML aggregates figures, I can't imagine that each CML member reports total income of all its mortgagees.

I'm not sure the CML publish their methodology to non members. As I'm not the "professional" VI that some of your tinfoil hat fellow travellers on HPC like to pretend I don't actually have access to that info.

dont lump me in please. its very rude. and misleading to other posters who dont follow the HPC website.

i follow the maths. The CML is a representative and promotional body for lenders, and defends them from accusations of reckless lending all the time. They use these stats to PROVE none of their member were guilty of reckless lending.

so, until we can see what the figures acutally mean, and that they relate to actual on the ground anecdotals, then they must be regarded as suspect.

for example. what is the average salary in a given road.

you might have 20 people on 20K. average 20K but you may also have one Civil servant on 100K...average JUMPS to 23.8K ...thats just with 1 high earner.

lets take that a step further...you have 20 guys on 20K with 60K mortgages....average multiple is 3.
now add a guy on 100K with another 60K mortgage.....the average multiple drops to an amazing 2.52.
now lets take the average up to 3 times multiple. the borrowing per borrower is now £72K an multiple for nearly all of them of 3.6

averages.....meaningless

andykn

Bloo_Loo wrote: »

dont lump me in please. its very rude. and misleading to other posters who dont follow the HPC website.

Apologies. Dreadful wording on my part. I meant those on HPC like you, but who are of the tinfoil hat persuasion [unlike you].

i follow the maths. The CML is a representative and promotional body for lenders, and defends them from accusations of reckless lending all the time. They use these stats to PROVE none of their member were guilty of reckless lending.

so, until we can see what the figures acutally mean, and that they relate to actual on the ground anecdotals, then they must be regarded as suspect.

Point taken.

for example. what is the average salary in a given road.

you might have 20 people on 20K. average 20K but you may also have one Civil servant on 100K...average JUMPS to 23.8K ...thats just with 1 high earner.

lets take that a step further...you have 20 guys on 20K with 60K mortgages....average multiple is 3.
now add a guy on 100K with another 60K mortgage.....the average multiple drops to an amazing 2.52.
now lets take the average up to 3 times multiple. the borrowing per borrower is now £72K an multiple for nearly all of them of 3.6

averages.....meaningless

Except I think it unlikely that the CML have the data to aggregate salary info. So, in your example the "average" would be 2.88.

What would be more meaningful, quoting examples of newly qualified professionals on 30k being given 150k mortgages when they'll be earning 50k practically by the time we've collated the stats.

Bloo_Loo

andykn wrote: »

Apologies. Dreadful wording on my part. I meant those on HPC like you, but who are of the tinfoil hat persuasion [unlike you].

Point taken.


Except I think it unlikely that the CML have the data to aggregate salary info. So, in your example the "average" would be 2.88.

What would be more meaningful, quoting examples of newly qualified professionals on 30k being given 150k mortgages when they'll be earning 50k practically by the time we've collated the stats.

Apologies accepted.

Im afraid that as long as even you, the stats King, doesnt know what the stats represent, its fair to say the stats, produced by a defender of the mortgage lenders, should be disregarded. to say they dont have the salary info makes a mockery of their stats, which without the salary info are again nonsense.

andykn

Bloo_Loo wrote: »

Apologies accepted.

Im afraid that as long as even you, the stats King, doesnt know what the stats represent, its fair to say the stats, produced by a defender of the mortgage lenders, should be disregarded. to say they dont have the salary info makes a mockery of their stats, which without the salary info are again nonsense.

I appreciate that their figures should be viewed with their perspective in mind.

However, from your example, if one lender reports 20 loans at a multple of 3 for each one and another lender reports one loan with a multiple of 0.6 then the CML can compile quite valid stats showing the average is 2.88.

Bloo_Loo

andykn wrote: »

I appreciate that their figures should be viewed with their perspective in mind.

However, from your example, if one lender reports 20 loans at a multple of 3 for each one and another lender reports one loan with a multiple of 0.6 then the CML can compile quite valid stats showing the average is 2.88.

valid, but entirely misleading. without the facts youve given.