House Price Inflation/Income/Old Age

CLAPTON

sjaypink wrote: »

I suppose I would wonder, reading this:

*how long it would take him to pay off if, for example, paying £800 per month?

*what the ratio of interest to capital payments would be if the rates went up to 4%, 5% etc?

*and in the worst case scenario (what is that, realistically? 8/9% ?) how much a mortgage on I/O would cost at those rates?

*thinking of sustainability, how many people at the moment have £30k savings and no debt?

*tempted to say.... what does £180k buy you in London?

*also tempted to say....... should you be advising on mortgages if your stance on huge amounts of debt is Yea yea rates can rise, so fkn what!

some answers

if he paid 800 per month then the mortgage would be finished in about 15-16 years

if interest rates went up to 8% then his payments for interest only would rise to £741 pm if they went up to 9% then his payments would be 830pm
although hopefully he might have reduced the capital before the interest rates rise

and in london you can probably buy a one bed flat in a half decent area or larger if you buy somewhere down market

the other question you left out was... how much is he paying in rent today anyway?