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£4,200 net income per month and can't get a mortgage!

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Comments

  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    £30 a month for gas?
    £15 a month for home insurance?
    Can you let us know your suppliers please?
    No free lunch, and no free laptop ;)
  • The_J
    The_J Posts: 1,250 Forumite
    Neverland wrote: »
    Those salary figures you are quoting must be net after tax and NI

    To be getting that NET income both people in the £50k net income example would need to be earning £35k a year and £75k each per year in the £100k net income example

    Only 25% of tax payers even pay higher rate tax...

    ...there is nothing average about the earnings figures you are quoting

    Your post = fail :o

    Firstly, and to reiterate the point I have already made, this was a 2x income example for the previous poster. Not an average (although I later made an example for what I consider the average).

    However: Average salary is £24,500 a year, net takehome from that is £1600. 2 people (2x24.5k = £49k). Please explain?

    It's largely irrelevant who your gas supplier is, the cost is based on the quantity you use. £30 a month is plenty.

    As for home insurance, no idea, whoever was cheapest, Aviva maybe. I spend more than that because I have additional insurance for valuables, valuables that the average person will not have so that's a bit of a guess.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Holiday Haggler
    edited 5 April 2012 at 4:16PM
    Your budget doesn't include money for children, buying presents, holidays, eating out, entertainment, white goods/electricals, books, music...

    There's a yiddish word for people who live their lives like this.. Schnorrer

    I don't live beyond my means, but i don't plan to be the richest corpse in the cemetery.
  • Neverland
    Neverland Posts: 271 Forumite
    The_J wrote: »
    Firstly, and to reiterate the point I have already made, this was a 2x income example for the previous poster. Not an average (although I later made an example for what I consider the average)...

    The average income of a family in the UK is only about £20k according to the IFS

    http://www.ifs.org.uk/wheredoyoufitin/

    According to the salary claculator here your notional couple on £50k gross between them are in the top third income for all UK households

    Your couple on £100k gross between them are in the top 7% of households in the UK

    Your post = epic fail :o
  • The figures don't work very well in the south east, where your £130k will buy you a small maisonette in a bad area
  • BillTrac
    BillTrac Posts: 1,869 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    On a cynical note..

    It's amazing how many threads there have been lately where the poster needs additional funds, doesn't know where to turn and within 24 hours the funds magically appear..
  • Neverland
    Neverland Posts: 271 Forumite
    The figures don't work very well in the south east, where your £130k will buy you a small maisonette in a bad area

    Its certainly pretty easy to see that some posters are working in the SE of England, yes...
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The_J wrote: »
    However: Average salary is £24,500 a year, net takehome from that is £1600. 2 people (2x24.5k = £49k). Please explain?

    In 2007/08 the median wage was £18.5k in the UK.

    If you earnt above £30k you were in the top 25% of earners in the UK.

    Above £45k. The top 10%.

    Averages don't reflect the true distribution of income.
  • The_J
    The_J Posts: 1,250 Forumite
    edited 5 April 2012 at 4:55PM
    Your budget doesn't include money for children, buying presents, holidays, eating out, entertainment, white goods/electricals, books, music...

    There's a yiddish word for people who live their lives like this.. Schnorrer

    I don't live beyond my means, but i don't plan to be the richest corpse in the cemetery.

    The £750 extra every single month doesn't cover that?
    The figures don't work very well in the south east, where your £130k will buy you a small maisonette in a bad area

    £130k is the average mortgage size (as Thrugelmir specifically said) You can have a £130k mortgage on a 500k house.
    Neverland wrote: »
    The average income of a family in the UK is only about £20k according to the IFS

    http://www.ifs.org.uk/wheredoyoufitin/

    According to the salary claculator here your notional couple on £50k gross between them are in the top third income for all UK households

    Your couple on £100k gross between them are in the top 7% of households in the UK

    Your post = epic fail :o

    Sorry sunshine, we're talking about people who can afford mortgages. The Government don't take figures that often (I think ASHE has been wound up) the latest figures I can find for the average full time employed salary is about 30k for a man, 24k for a woman.

    http://career-advice.monster.co.uk/salary-benefits/pay-salary-advice/uk-average-salary-graphs/article.aspx

    So an average working couple will be on 54k a year. The latest Government average is £24500 which is why I used that figure.

    REGARDLESS those examples were for 2x salary FOR THE PREVIOUS POSTER. How many times do I have to say that? Jeez. Most mortgages are 4x salary.
    Thrugelmir wrote: »
    In 2007/08 the median wage was £18.5k in the UK.

    If you earnt above £30k you were in the top 25% of earners in the UK.

    Above £45k. The top 10%.

    Averages don't reflect the true distribution of income.

    This is a reasonable point but largely irrelevant because we're talking multiples of salary. The lower the salary the less disposable income so the greater the timeframe for repaying a mortgage. However, should those people, living on the breadline, be investing in property? Renting is more suited to them.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • This is a reasonable point but largely irrelevant because we're talking multiples of salary. The lower the salary the less disposable income so the greater the timeframe for repaying a mortgage. However, should those people, living on the breadline, be investing in property? Renting is more suited to them.[/QUOTE]
    BULL !!!!, depends on your equity!
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