1985... The year of 100% Mortgages at 5 times income

ash28

crash123 wrote: »

I knew colleagues at work who clubbed together to buy houses to take advantage of MIRAS before the change.

And then it went tits up not long after that.[/QUOTE]

Yes it certainly did - but the gov't must have it's brain in neutral to announce changes to MIRAS 4 months before it was due to happen - people went on buying fest here.

They should have made it the same as fuel duty increases - from 6 o'clock tonight.....

geneer

geneer wrote: »

:rotfl:That the best you can do.


Rather looks like I was exactly right then.

Whilst you were, as I stated, misrepresenting data.

Thanks for clarifying your significant error.

"wooooooooooo woooooo wooooooooooooo"

geneer

HAMISH_MCTAVISH wrote: »

http://blogs.telegraph.co.uk/finance/ianmcowie/100006262/why-irresponsible-lending-helped-me-and-millions-of-others/

I could swear there's a lot of posters on here who seem to think 100% mortgages at 5 times income are a very recent invention.

And I could swear that theres a lot who don't.....:rotfl:

http://forums.moneysavingexpert.com/showpost.php?p=45520698&postcount=75

So lets recap on the earnings rations....

Peak of 80s bubble.
Nationwide Q3 1989. 3.8
CML FTB earnings ratio. Q3 1989. 2.28

Peak of last bubble.
Nationwide average price to average salary index. Q4 2007. 5.4.
CML FTB earnings ration. Oct. 2007. 3.38


Now if we know that at the peak of the bubble they were handing out 5xsingle incomes (it was after all a bubble) and the "average" earnings ration was 2.28, just how much worse must 2007 have been with an average earnings ration of 3.38.