Debate House Prices


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FSA warns on levels of UK mortgage debt

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  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    But interest rates wont make any difference. People were paying higher than now in 2007.

    Rinse, repeat....

    But interest rates wont make any difference. People were paying higher than now in 2007.

    Rinse andddd repeat

    Oh, and sack anyone in the BOE who says interest rates should rise. Get rid of entire organisations that look at credit and say anything that could restrict lending and cause heartless famines. Let people state their earnings are x amount for mortgages, and a far lower amount for tax returns, its unfair they have to state the same for both.
  • macaque_2
    macaque_2 Posts: 2,439 Forumite
    Conrad wrote: »
    Every single time I mention this people reach for the sour grapes bag. I earn a lot of money now that people need me more than ever for commerical and residental finance.

    This is not about me, this is about the perfectly capable adults I see daily, having thier dreams and plans quoshed by an over zealous out of touch regulator.


    "I mention.....I earn...... need me...... I see......."
    "This is not about me"

    Hmmmmm!
  • zappahey
    zappahey Posts: 2,252 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ukcarper wrote: »
    What is affordable lets take a 2 bed terrace near where I live £160k with a 10% deposit a mortgage of £144k.

    So at 5x income you would need to earn £28.8k. Take home £1820 a month.

    Mortgage payments 25 years 5% £851, 6% £938, and 7% £1029and 8% £1124.
    Leaving £969, £882, £791 and £696 respectively

    Someone on minimum wage takes home £889 a month.

    When was it ever the case that the lowest paid could buy a house?
    What goes around - comes around
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    zappahey wrote: »
    When was it ever the case that the lowest paid could buy a house?

    You totally missed the point of my post I was just asking at what stage do people think it becomes unaffordable.

    My point was that at 5x at 5% the buyer has almost as much after paying mortgage as a person on minimum wage takes home.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ukcarper wrote: »
    You totally missed the point of my post I was just asking at what stage do people think it becomes unaffordable.

    My point was that at 5x at 5% the buyer has almost as much after paying mortgage as a person on minimum wage takes home.

    Yer, but without the housing benefit.

    Also, it's difficult to get 5% now. Let alone when rates rise.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 17 March 2011 at 11:13PM
    Yer, but without the housing benefit.

    Also, it's difficult to get 5% now. Let alone when rates rise.

    If he was single he wouldn’t get much housing benefit.

    In my area LHA single person is £83 per week a person on minimum wage would get about £12.35 housing benefit and working tax credit combined, so would have to find £70 towards rent about £300 a month leaving them about £589.
  • Kohoutek
    Kohoutek Posts: 2,861 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ILW wrote: »
    Surely a company or individual can increase profits and growth without increasing borrowing.

    An individual company could, but not the whole country in aggregate. Creating new loans is the method in which new money is created. That's how our monetary system works.
  • ILW
    ILW Posts: 18,333 Forumite
    Kohoutek wrote: »
    An individual company could, but not the whole country in aggregate. Creating new loans is the method in which new money is created. That's how our monetary system works.

    So nothing to do with adding value or providing a service then?
  • Kohoutek
    Kohoutek Posts: 2,861 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ILW wrote: »
    So nothing to do with adding value or providing a service then?

    If you can provide greater value or greater goods or services with the same input of capital, then you're obviously increasing productivity and contributing to economic growth.

    That doesn't change how our monetary system works – if everyone decided to stop taking out new loans and repay existing ones, we would experience deflation.

    The money that people use to buy your business' products or services comes from bank credit that was created by someone taking out a loan.
  • AD9898_2
    AD9898_2 Posts: 527 Forumite
    mbga9pgf wrote: »
    No, this is about you, as a broker, having to take a haircut on your commission.

    Suck it up. The credit boom is over.

    Mmmm, Conrad's obvious VI shines through every single post he/she makes. The credit boom is indeed at an end. If you 'made hay while the sun shined' in the boom years and put money aside as a broker, good luck to ya, if on the other hand you blew it and are waiting for some mug to walk through your door to 'pedal your wears' to, then I'm afraid they have all but dried up.

    So indeed, suck it up.
    Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.
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