How much will doomsday interest rates affect mortgage repayments

The_White_Horse

chewmylegoff wrote: »

if they've got a £250k mortgage, they're likely to have an income of about £70k, which is £4k a month after tax...

but lets say, after tax they get 3.8k a month. the mortgage will take up nearly 2k of that.

then if this is a family, they will have car costs, insurance costs, council tax, food, other bills, travel costs - it all adds up pretty quickly. a family of 4 can spend 150 a week on the necessities at tesco. I reckon they will struggle from one pay day to the next.

i'm not saying they will be on the bread line immediately, but if that continues for a long time, they won't have much spare when the kids need new clothes (or the adults for that matter) or haircuts etc

now, that is someone on 70k - which is a good salary, living in possibly a very small house in London.

tough times.

chewmylegoff

The_White_Horse wrote: »

but lets say, after tax they get 3.8k a month. the mortgage will take up nearly 2k of that.

then if this is a family, they will have car costs, insurance costs, council tax, food, other bills, travel costs - it all adds up pretty quickly. a family of 4 can spend 150 a week on the necessities at tesco. I reckon they will struggle from one pay day to the next.

i'm not saying they will be on the bread line immediately, but if that continues for a long time, they won't have much spare when the kids need new clothes (or the adults for that matter) or haircuts etc

now, that is someone on 70k - which is a good salary, living in possibly a very small house in London.

tough times.

so basically, what you're saying is that if a family chooses to spend all its money down tescos the mum will end up having to cut their hair using kitchen scissors and a pudding bowl?

sjaypink

chewmylegoff wrote: »

so basically, what you're saying is that if a family chooses to spend all its money down tescos the mum will end up having to cut their hair using kitchen scissors and a pudding bowl?

i really have no idea how 4 people can spend £150 per week.....

.....and in tesco ? :eek:

...maybe if he had said waitrose, or m & s ...... :D

but point taken that if youre used to 4k a month you will feel the difference.... people tend to spend to (or beyond!) their means

The_White_Horse

i'd hardly say 150 a week for a family of 4 or 5 is a lot.

wymondham

£150 for 4 is excessive. We have 4 in our troop, shop at Tesco, and usually it comes to about £80 for the week. Maybe this theoretical family like the finer things in life? (the first things to go when things get tight)...

another thing, 12% is not doomsday rates, thay are more normal than the current rates, seems people are now thinking this 'artificial environment' is actually real and will continue indefinately??

RobertoMoir

The_White_Horse wrote: »

i'd hardly say 150 a week for a family of 4 or 5 is a lot.

I'd say it suggests that whoever is doing the shopping is buying a "family sized pasta bake" ready meal for dinner instead of some pasta, chicken, fresh tomatoes, etc. and making their own.

RobertoMoir

The question is whether or not people who are buying right now are using the opportunity to get houses they can actually afford at "bargain" prices or if they're using the opportunity to buy houses... I want to say "above their station" but that sounds snobby when I don't mean it to be. I'm sure you know what I mean though.

I think the first group might groan a little but be ultimately ok but the second group would be in real trouble.