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Debate House Prices
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Historical House Affordability
Comments
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I saved with the Leeds BS for two years, and then, when I decided I needed a mortgage in principle, they told me the quota was used up.
So I popped into a 'new' building society on our High St and asked what they could do for someone with £1k. They offered me a mortgage, provided I moved my stash there immediately. By the end of the day, I was set up to go searching.
That was probably the first time I realised that loyalty in financial matters wouldn't necessarily be rewarded.
When I got my first mortgage in 1972 after not being offered enough by Building Society I had been saving with and one broker I sat down and rang all the local Building Societies until one offered me enough.0 -
Certainly did in 90.
Research by Halifax, the UK's largest mortgage lender, has revealed that mortgage rates peaked 15 years ago and have never returned to that level.
The Standard Variable Rate (SVR) peaked at 15.4 per cent in February 1990 after a steady upward trend from 9.8 per cent in April 1998.
http://www.fairinvestment.co.uk/news/mortgages-news-Halifax-reveals-15-year-gap-since-mortgage-rate-peak-7756568.html
SVR did, did all mortgages? I did say average afterall. Or do I have to go hunting for links again? Actually i can't be bothered....would rather admit I'm just wrong as all round its easier, but have posted them up before, and was told that was correct even by ISTL I think.0 -
It's worth remembering that over time in the UK, wages have increased relative to prices so a larger proportion of income is freed for aspirational spending including bidding up house prices and discretionary spending.
Indeed.
You may find this interesting.
http://www.statistics.gov.uk/STATBASE/Expodata/Spreadsheets/D6250.xls
Household disposable income has increased massively since the 70's.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
My parents bought their house in 1959. House was £2400. They borrowed £800 from my dad's parents, and got a £1600 mortgage on the basis of my dad's salary of £1100pa. My mum was a SAHM at the time. I'm afraid I've no idea what interest rates were, but somebody can look it up if they want to.
The job my dad was doing probably pays about £33k today, and the house has recently been valued at £500k in its current state or £650k if done up - they haven't done much in the way of modernising it since they bought it.
ETA Thanks Cleaver for making me laugh. I don't know whether they had paid his parents back by the time his dad died in 1963, but they had certainly paid off the whole of that loan by the time his mum died in 1989. She was 103, BTW.Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.
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[QUOTE=My parents bought their house in 1959. House was £2400. They borrowed £800 from my dad's parents, and got a £1600 mortgage on the basis of my dad's salary of £1100pa. My mum was a SAHM at the time. I'm afraid I've no idea what interest rates were, but somebody can look it up if they want to.
The job my dad was doing probably pays about £33k today, and the house has recently been valued at £500k in its current state or £650k if done up - they haven't done much in the way of modernising it since they bought it.
[/QUOTE]
That is an incredible increase you would be lucky to get £200k for the house I bought for £8k in 1972 I think £2400 was average house price in 1959 and was £7300 in 1972.0 -
That is an incredible increase you would be lucky to get £200k for the house I bought for £8k in 1972 I think £2400 was average house price in 1959 and was £7300 in 1972.
Average house prices from 1970 til 2000......
1970 4,975
1971 5,632
1972 7,374
1973 9,942
1974 10,990
1975 11,787
1976 12,704
1977 13,650
1978 15,594
1979 19,925
1980 23,596
1981 24,188
1982 23,644
1983 26,471
1984 29,106
1985 31,103
1986 36,276
1987 40,391
1988 49,355
1989 54,846
1990 59,785
1991 62,455
1992 61,336
1993 62,333
1994 64,787
1995 65,644
1996 70,626
1997 76,103
1998 81,774
1999 92,521
2000 101,550
The more interesting series is as follows......
1970 4,975
1980 23,596
1990 59,785
2000 101,550
2010 167,000
The increases over the last decade are far from exceptional.......“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Inflation is theft
"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
Bought first house a semi in 1971 - cost 7,400 on a 5,000 mortgage - very embarrassing two surnames on the mortgage that were not the same. Mind you that was 3x male salary and 0.5x female salary.
Sold house one for 11,000 in 1974. What a struggle getting a mortgage. Strangely it was the Leeds B.S., which had a savings account that broke the cartel and paid an extra quarter percent interest, that won the mortgage race of 3.5 months to lend 11,000 on a 16,000 detached wreck.
Interest was tax allowable in those halcyon :rotfl:times.0
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