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People will adjust their spending habits in order to afford their mortgage
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the loan is interest free for the first 5 years
thereafter the interest has to be paid monthly
the actual loan is paid off when you sell the property plus profit
or you can repay at any time
Is it interest or a ratcheted fee linked to inflation or are there both?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Makes interesting reading average FTB advance against income didn't exceed 3.4x in boom
Very high LTV lending was vanishingly rare, even in 2007.
The CML data shows that the average FTB loan for 2007 was around 3.5 times income.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
grizzly1911 wrote: »Table 517 on this Government Statistics Site doesn't seem to support those normal ratios you quote:think:
https://www.gov.uk/government/statistical-data-sets/live-tables-on-housing-market-and-house-prices
I already answered this post in another thread.
It claims that the average deposit size has barely changed in several decades.
And that the average deposit was around 20% in 2007. (when the CML claim it was 11%, and the various housing bears on here claim it was lower still)
So either that data doesn't mean what you think it does, or the claims of "lax lending" are a complete myth.
Which is it?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I can't believe that there's a 9 page thread questioning whether people will be able to cut discretionary spending in order to afford their mortgage when we're all posting on a site called moneysavingexpert.com.0
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Graham_Devon wrote: »I reckon that would be pretty darn tight.
For a start there can be no debts, but I guess they would need a car, so I'm going to suggest £100 a month on car loan. Why assume anything on a car loan? Even if they have a car, and need one, I can't see where the loan-assumption comes in.
£150 per month on council tax. - £120. Is the average CT really £1,800 a year?!
£150 on electric / gas / water. -seems a bit high, but fair enough
£240 a month on food. - fair enough
£150 a month on fuel (for the average car and average mileage) that's a hell of a lot of petrol. I'd make it £100 and think that's a lot
£15 a month on presents etc (thinking christmas)
£35 a month road tax, MOT, servicing.
£70 a month car and home insurance - £50. £840 a year for these two? Ours (3 bed flat, central London) are about £500
£10 a month TV licence.
£30 a month clothing and footwear (believe me, this is scrimping by when it comes to growing kids....one pair of shoes and that budget for the month is blown).
That leaves £440 for the extra stuff you mention, not £240....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Voyager2002 wrote: »Most people have far too much money, and waste it on junk that just makes them miserable. I mean, no-one really needs a television, motor car telephone, convenience food and lashings of alcohol. Back in the 1940s people mainly grew their own vegetables; got their entertainment talking with each other and if they were lucky reading books from the local public library; walked or cycled to get there they needed to be; and cooked everything from raw ingredients rather than buying it processed. And you know what? Everyone was a lot happier back then.
In the 1940s?
Families split apart by evacuation and people posted in the armed services.
Bombs dropping on your heads.
I'm not sure the 1940s were actually a time of unmitigated joy, actually....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Graham_Devon wrote: »The initial outlay is too much otherwise. And theres no point about going on about £1,000 cars. They are that much for a good reason. 10,000 miles a year is hardly excessive. Outside of cities, people travelling 15 miles to work and 15 miles back is very much the norm (allowing for extra trips to the shops and the like).
Our current car cost £5.5k in 2000. It was 2 or 3 years old then. Still working absolutely fine, always starts, no major work needed the whole time we've owned it, which is 13 years.
It's almost certainly worth far less than £1k, but is completely reliable. In 13 years, it's needed the odd new tyre, one new exhaust, and 2 new batteries. That's it....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »Our current car cost £5.5k in 2000. It was 2 or 3 years old then. Still working absolutely fine, always starts, no major work needed the whole time we've owned it, which is 13 years.
It's almost certainly worth far less than £1k, but is completely reliable. In 13 years, it's needed the odd new tyre, one new exhaust, and 2 new batteries. That's it.
Is it a Merc?
I have to wait another year for my Merc to be worth less than £1000 so I can apply for a DRO.I hear things are getting so bad people are starting to have to live within their means.0 -
Graham_Devon wrote: »You are, grizzly, spot on. It's difficult when it's almost every direction.
I'm not interested in getting involved in this spat, but I have to ask...
If your views/analysis are being attacked from almost every quarter, do you ever wonder if that's because you're wrong?0 -
I can't believe that there's a 9 page thread questioning whether people will be able to cut discretionary spending in order to afford their mortgage when we're all posting on a site called moneysavingexpert.com.
Reverse psychology...perhaps everyone on here has already cut every expenditure to the minimum?!I think....0
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