January Nationwide MoM -0.1% YoY -1.1%

bingobob777

Batchy wrote: »

On a mortgage of 100k there is no reason for the mortgage payment to be that high... at 4% more like £530pm so more like 28k earnings needed. The total housing costs would be more like 800 per month with most bills, still leaving them 1k to survive (oh no this is the end of the world), each 1% increase in Base should they be tracking will result in £57 increase in mortgage. They dont think this year will even be more than 0.75% in total... so thats probably £40 quid per annum increase if we get rising rates but it will more than likely be fixed for between 2-5 years anyway. A 2% payrise will just about cover that each year (average wage growth currently). So fix for 5 years, after 5 years it will still cover a 4% jump in base rates easily when your remortgage or revert to SVR. Spending will be curbed... but it wont be the end of the world.

FTBers are not people who just left school, they are on average 35 year olds. Most of them probably earn OVER 30k and middle managers.

So most FTB'ers are 35 year old middle managers. :rotfl:

They've managed to get a fixed rate of 4%, meaning they have 40%ish equity on there first house, using average price of 160k they have 64k deposit.

and, and

their household bills come to 270 a month?

So to sum up

First time buyers are 35 year old middle managers with 64k savings and outgoings of 270 a month on top of their mortgage?

Quite plainly, obviously utter bollox.

Where is the evidence for the 29% figure?

ILW

Batchy wrote: »

On a mortgage of 100k there is no reason for the mortgage payment to be that high... at 4% more like £530pm so more like 28k earnings needed. The total housing costs would be more like 800 per month with most bills, still leaving them 1k to survive (oh no this is the end of the world), each 1% increase in Base should they be tracking will result in £57 increase in mortgage. They dont think this year will even be more than 0.75% in total... so thats probably £40 quid per annum increase if we get rising rates but it will more than likely be fixed for between 2-5 years anyway. A 2% payrise will just about cover that each year (average wage growth currently). So fix for 5 years, after 5 years it will still cover a 4% jump in base rates easily when your remortgage or revert to SVR. Spending will be curbed... but it wont be the end of the world.

FTBers are not people who just left school, they are on average 35 year olds. Most of them probably earn OVER 30k and middle managers.

How does that work out?

AndyGuil

ILW wrote: »

How does that work out?

Quite. A 1% increase on a 100K mortgage is an extra £1000 in a year.

ILW

AndyGuil wrote: »

Quite. A 1% increase on a 100K mortgage is an extra £1000.

Or £83 per month, Am I missing something?

Batchy

is this why you dont buy houses? you dont understand how to calculate the increase the changes to base rates will make!
I think you need to stop looking at interest returns on investments as a starting point.

AndyGuil

ILW wrote: »

Or £83 per month, Am I missing something?

It is not £57 per annum as Batchy said.

Batchy wrote: »

each 1% increase in Base should they be tracking will result in £57 increase in mortgage. They dont think this year will even be more than 0.75% in total... so thats probably £40 quid per annum increase.

HAMISH_MCTAVISH

bingobob777 wrote: »

Where is the evidence for the 29% figure?

https://www.google.co.uk

You've been told already, it's from the halifax hpi reports.

bingobob777

HAMISH_MCTAVISH wrote: »

www.google.co.uk

You've been told already, it's from the halifax hpi reports.

A link to the google homepage isn't evidence.

but I'll have a look.

Average FTB House price 139k - heavily skewed by london of course
Average FTB mortgage 110k
Average deposit 29k

Figures are based on the average earnings for ALL employees, are FTB earning the average earnings for all employees?
disposable income takes into account tax and NI only, no bills, cars?

27% of disposable income is crap.

Mallotum_X

bingobob777 wrote: »

So most FTB'ers are 35 year old middle managers. :rotfl:

They've managed to get a fixed rate of 4%, meaning they have 40%ish equity on there first house, using average price of 160k they have 64k deposit.

and, and

their household bills come to 270 a month?

So to sum up

First time buyers are 35 year old middle managers with 64k savings and outgoings of 270 a month on top of their mortgage?

Quite plainly, obviously utter bollox.

Where is the evidence for the 29% figure?

Despite agreeing with the sentiments, FTB dont buy an "average" house, and why should they expect to. A FTB would "typically" buy a smaller house, maybe a 2 bed terrace or flat, and hope to work their way up.

We have got to a stage where often the FTB property is now a lot smaller than it would have been in the past.

Exceptions to every generalisation of course.

Percy1983

Mallotum_X wrote: »

Despite agreeing with the sentiments, FTB dont buy an "average" house, and why should they expect to. A FTB would "typically" buy a smaller house, maybe a 2 bed terrace or flat, and hope to work their way up.

We have got to a stage where often the FTB property is now a lot smaller than it would have been in the past.

Exceptions to every generalisation of course.

To a point I would say the FTB home maybe changing as we are forced to buy later in life.

EG I have a friend who bought a 2 bed terrace in 2006 (typical FTB home I suppose) and he is now looking to move to a 3 bed home as his second child is on the way. Meanwhile I I didn't buy in 2006 but will be doing soon if all goes to plan, to which children won't be far behind (all being well), so we are going straight to the 3 bedroom houses which suite our needs.

In short as the age of the average FTB goes up the needs of the average FTB will change.