30 years to save for a deposit!

paddedjohn

Are there any lenders out there that would let you take a mortgage into your 70's? Start work aged 18, save for 30 years so 48 when getting mortgage, 25 year term = 73.

C_Mababejive

The simple answer if for homeless people to take to the roads in vans/caravans and motorhomes. Occupy common and public land. If this becomes more widespread then a solution will be found. Do not buy into the capitalist slavery system of lashing yourself to an over priced millstone which you never really own and which stands on land that you dont own and could be blighted at any time by a buy to let "entrepreneur".

christopher1977

WestonDave wrote: »

Was discussing this elsewhere earlier - worked out that in 1971 my parents paid roughly 11 times the average wage for their house. In 2012 it was worth just under 11 times the average wage. In 1971 it was strictly 10% or more deposit, you had to have been saving with the building society you wanted to borrow from, and even if the wife had a job it was mans wage only that was taken into consideration.

The difference is that these days people expect to be able to buy a house as well as paying a couple of thousand per year on foreign holidays per couple, getting on for a grand for a couple on top notch mobile phone contracts, maybe another grand on broadband and pay TV, plus run a car. I know for certain that back in the day my parents didn't have a car (Dad couldn't even drive until I was around 7 as I can remember Mum teaching him), didn't have a TV, and holidays consisted of a trip to see relatives (their honeymoon was on Jersey!). These days an average wedding costs around £18k which would get you a 10% deposit on a house in most places in the UK.

Its not so much houses that have become more expensive as in relation to earnings they don't really appear to have, but that people have many more things they want in life other than "just" a house so the relatively static price of a house seems more expensive when other things are falling in relative terms.

this post is complete nonsense - do some research - i can't be bothered even telling you it's so far off the mark.........

ukcarper

christopher1977 wrote: »

this post is complete nonsense - do some research - i can't be bothered even telling you it's so far off the mark.........

Average house prices in the early 70s

http://www.housepricecrash.co.uk/graphs-average-house-price-to-earnings-ratio.php

ess0two

christopher1977 wrote: »

this post is complete nonsense - do some research - i can't be bothered even telling you it's so far off the mark.........

It quite factual for todays generation,especially the middle paragraph.

christopher1977

My sister and her husband bought a 3 bed semi with garage and decent sized garden for 56k. Both of them earn low to average wages. That same house is now for sale at 180k. There is no way they could afford that house now and i don't think buying an IPAD equates to 124k?

yorkshire_terrier_owner

WestonDave wrote: »

Was discussing this elsewhere earlier - worked out that in 1971 my parents paid roughly 11 times the average wage for their house. In 2012 it was worth just under 11 times the average wage. In 1971 it was strictly 10% or more deposit, you had to have been saving with the building society you wanted to borrow from, and even if the wife had a job it was mans wage only that was taken into consideration.

The difference is that these days people expect to be able to buy a house as well as paying a couple of thousand per year on foreign holidays per couple, getting on for a grand for a couple on top notch mobile phone contracts, maybe another grand on broadband and pay TV, plus run a car. I know for certain that back in the day my parents didn't have a car (Dad couldn't even drive until I was around 7 as I can remember Mum teaching him), didn't have a TV, and holidays consisted of a trip to see relatives (their honeymoon was on Jersey!). These days an average wedding costs around £18k which would get you a 10% deposit on a house in most places in the UK.

Its not so much houses that have become more expensive as in relation to earnings they don't really appear to have, but that people have many more things they want in life other than "just" a house so the relatively static price of a house seems more expensive when other things are falling in relative terms.

I have to say I agree that people's expectations these days are different. My parents sat on orange boxes for 6 months until they could afford a second hand sofa when they bought their first house. Interest rates were also way higher than they are now.

My mum said to me recently that it has ALWAYS been hard to get onto the housing ladder. The reasons why may differ but it's still always been hard.

What I will say is I have a friend who bought her first house and was so broke she couldn't even afford to come to the pub after work for a soft drink. Turned out the beautiful furniture in her house and the car parked outside were all on the never never. I still have hand me down furniture from my first house and if I don't have the hard cash, I don't buy it (even cars). Consequently I have far more disposable income than my peers in the same job and I was able to sell my last house at a loss to buy a bigger one when they are wanting to move but trapped - it took me 2 years to save a 10% deposit on a £150k property plus fees whilst paying a mortgage/bills. I am single and have no children. Sacrifices and minimising spending - job done.

DominicJ_2

christopher1977 wrote: »

this post is complete nonsense - do some research - i can't be bothered even telling you it's so far off the mark.........

Seems perfectly reasonable to me.
Our bills are
Mortgage Interest:£250
TV Tax:£12.18
Council Tax:£80
Gas/Elec:£131 (should overpay a lot at this level)
Sky: £71.75 (Our one luxury)
TWO phones: £35
Food:£200
Train Ticket:£92
Petrol:£100
Water:£35

£1050
We dont go out, we dont have iPads, we dont smoke, we dont go on Holiday, we dont buy takeaways (we get one through the week as a birthday treat when its half price)

Two working adults could save £1000 per month easily.
We save over £1500

We'd like to go out for meals three nights a week, We'd like tablets, we'd like a second car, a new one not one from before I learnt to drive (54reg), we'd like a holiday, we'd like a 3d TV and surround sound.
But *we* give up all of that and instead paid off debt and save for a deposit.

Its crappy, its rubbish to go without and to have nothing for your hard work but paid off credit cards, but its not difficult, and rewards will come.

And anyone can do it.
Any working couple can raise a £12,000 deposit for a reasonable house and they can do it in a year.


********
We're on our second set of second hand sofas, and I bought my first new TV for my 27th Birthday

ukcarper

christopher1977 wrote: »

My sister and her husband bought a 3 bed semi with garage and decent sized garden for 56k. Both of them earn low to average wages. That same house is now for sale at 180k. There is no way they could afford that house now and i don't think buying an IPAD equates to 124k?

If you look at graph I linked to you will see house prices go up and down in relation to earnings. In the 90s house prices compared to earnings were the lowest they have been since the 50s and in the early 70s and late 80s they were at the highest apart from the last boom .