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

macman

£30 a month for gas?
£15 a month for home insurance?
Can you let us know your suppliers please?

The_J

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

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.

[Deleted User]

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

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

[Deleted User]

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

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

ringo_24601 wrote: »

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

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

ringo_24601 wrote: »

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?

ringo_24601 wrote: »

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

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.

stopbuyingshit

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!