Income multipliers or actual affordability?

HappyMJ

callmechar wrote: »

Ha...i do not think we have less than average salaries!

Depends on what you call average. It's very low for London. In my opinion it's also low for someone who has graduated from Uni.

I would not be buying anywhere where mortgage is higher than rent. Keep saving until mortgage is less than rent then buy at that time. House prices are not going to rise by much over the next few years (my opinion - your gamble).

callmechar

I have a law degree...graduated 2009 with 2.1 live just outside london. taken offence at your comments. I think I earn ok wage...me and other half frugal with our money. Mortgage would be about 200 more than rent but its worth because I hate private renting, no certainty

somethingcorporate

callmechar wrote: »

I have a law degree...graduated 2009 with 2.1 live just outside london. taken offence at your comments. I think I earn ok wage...me and other half frugal with our money. Mortgage would be about 200 more than rent but its worth because I hate private renting, no certainty

You earn an OK wage, but still less than the UK Median which was ~£500 per week or £26k per year in April last year (source: http://en.wikipedia.org/wiki/Income_in_the_United_Kingdom).

You have ideas above your current financial station unfortunately and in london the average UK salary is pretty poor and gets you nothing, housing-wise.

callmechar

somethingcorporate wrote: »

You earn an OK wage, but still less than the UK Median which was ~£500 per week or £26k per year in April last year (source: http://en.wikipedia.org/wiki/Income_in_the_United_Kingdom).

You have ideas above your current financial station unfortunately and in london the average UK salary is pretty poor and gets you nothing, housing-wise.

I don't think we have ideas above out station. A mortgage over 30 years more than

somethingcorporate

callmechar wrote: »

I don't think we have ideas above out station. A mortgage over 30 years more than manageable.

Work for a charity

Fair play, it's your risk. You will be stretching yourself to the max on assets that are continuing to decline in value gambling on rates staying low to keep you buoyant.

Have you run the sums if interest rates hit double figures? it was 15% in the 80's.

alexlyne

In 2009 when I last moved with my now wife, combined income was higher than yours, and we were able to get 170K (iirc) from our lender (with 10% deposit). That's with no childcare costs.. of course we didn't max out as we still considered that our affordability factor was lower than what the bank thought. 2 years later, factor in childcare costs and the amount that we can borrow goes down, not up..

Good luck! - and don't stretch youself - if you use up family goodwill to get a deposit for a house, then can you rely on it again if things go pear shaped?

callmechar

God I feel depressed now

somethingcorporate

DVardysShadow wrote: »

Indeed, but when John Hawk's 2 posts go, it will look like you are calling spam on me. Thanks!

And now you just sound like you are putting words in my mouth

beecher2

I agree that it would be a stretch and that you should keep saving. By the sounds of it you want security, but there's very little security with a 30 year 90% mortgage at over 4 times salary.

callmechar

The average I have seen is 2.75 times our income which is about 130k. No where near enough