People will adjust their spending habits in order to afford their mortgage

Graham_Devon

ukcarper wrote: »

That £1068 is based on 7.5%

OK, do you think 1,068 is enough to live on after mortgage costs? Remember the average family buying a house today or over the last 5 years is most likely to have kids.

Seems I keep having to ask questions!

DevilsAdvocate1

I remember at the end of the eighties when mortgage rates were ridiculously high - about 13% at one point. Many people I knew took on extra jobs.

One person I worked with worked full time in the IT department of a pharmaceutical company. He then worked in a bar on a night and sold at a market stall on a weekend. His wife was doing similar. They hardly saw each other and their marriage was on the verge of collapse.

This would be the alternative to cutting back.

jackieblack

DevilsAdvocate1 wrote: »

I remember at the end of the eighties when mortgage rates were ridiculously high - about 13% at one point. Many people I knew took on extra jobs.

I remember rates at 15.4% in the spring of 1990 _pale_

ukcarper

Graham_Devon wrote: »

OK, do you think 1,068 is enough to live on after mortgage costs? Remember the average family buying a house today or over the last 5 years is most likely to have kids.

Seems I keep having to ask questions!

Yes and if they have 2 children they would get child benefit increasing that £1068 to £1214 a month.

Graham_Devon

DevilsAdvocate1 wrote: »

I remember at the end of the eighties when mortgage rates were ridiculously high - about 13% at one point. Many people I knew took on extra jobs.

One person I worked with worked full time in the IT department of a pharmaceutical company. He then worked in a bar on a night and sold at a market stall on a weekend. His wife was doing similar. They hardly saw each other and their marriage was on the verge of collapse.

This would be the alternative to cutting back.

It would...but you'd be joining the millions of others looking for jobs at the same time.

CLAPTON

Graham_Devon wrote: »

OK, do you think 1,068 is enough to live on after mortgage costs? Remember the average family buying a house today or over the last 5 years is most likely to have kids.

Seems I keep having to ask questions!

the reason you have to keep asking is because you reject the answers you are given

how do you know they haven't got sky: huge numbers of people with/without kids have a full sky package

huge numbers of people use bus/trains to get to work and don't need a car


the vast majority of people will be anything to keep the house.


so YES they will cut down on gas and electicity and buy cheaper food

jackieblack

Graham_Devon wrote: »

OK, do you think 1,068 is enough to live on after mortgage costs? Remember the average family buying a house today or over the last 5 years is most likely to have kids.

Yes it is, we live on less

Graham_Devon

ukcarper wrote: »

Yes and if they have 2 children they would get child benefit increasing that £1068 to £1214 a month.

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.

£150 per month on council tax.
£150 on electric / gas / water.
£240 a month on food.
£150 a month on fuel (for the average car and average mileage)
£15 a month on presents etc (thinking christmas)
£35 a month road tax, MOT, servicing.
£70 a month car and home insurance
£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).

Now, after all of those, what I would class, quite low, the clothing for example I have assumed ebay prices for second hand stuff, but workwear could cause issues) but mandatory expenses for a family, were left with the grand total of £264.

That £264 has to pay for:

Any item of furniture / white good.
Mobile
Landline
Boradband
Any unexpected car repair costs (tyres, MOT failiure etc)
Prescriptions,
Any kids event or childs birthday
Any housing repairs
Any recovery (AA, RAC)
Any personal items (small items, such as hairdressing for a family of 4 soon racks up)
School meals
Dentists
Opticians
Any single hobby or event you undertake with the kids....even if it's paying for parking so you can take them to the beach / park
Any emergency.

Quite a long way for £240 to go, don't you think?

So, we'd HAVE to cut back. So, what goes? The washing machine never gets replaced? You never ever have to replace any item in the house? Broadband and PC, remembering the kids do benefit from this with schools now? Precriptions...a bit like those families in Greece?

Doesn't seem all that great in todays age to be having to get rid of this stuff in order to pay for a roof, does it?

Graham_Devon

jackieblack wrote: »

Yes it is, we live on less

But you installed a solar system?

shortchanged_2

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.

£150 per month on council tax.
£150 on electric / gas / water.
£240 a month on food.
£150 a month on fuel (for the average car and average mileage)
£15 a month on presents etc (thinking christmas)
£35 a month road tax, MOT, servicing.
£70 a month car and home insurance
£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).

Now, after all of those, what I would class, quite low, but mandatory expenses for a family, were left with the grand total of £264.

That £264 has to pay for:

Any item of furniture / white good.
Mobile
Landline
Boradband
Any unexpected car repair costs (tyres, MOT failiure etc)
Prescriptions,
Any kids event or childs birthday
Any housing repairs
Any recovery (AA, RAC)
Any personal items (small items, such as hairdressing for a family of 4 soon racks up)
School meals
Dentists
Opticians
Any single hobby or event you undertake with the kids....even if it's paying for parking so you can take them to the beach / park
Any emergency.

Quite a long way for £240 to go, don't you think?

So, we'd HAVE to cut back. So, what goes? The washing machine never gets replaced? You never ever have to replace any item in the house? Broadband and PC, remembering the kids do benefit from this with schools now? Precriptions...a bit like those families in Greece?

Doesn't seem all that great in todays age to be having to get rid of this stuff in order to pay for a roof, does it?

Holidays, Graham, you forgot about holidays.

But then again hard working people don't deserve them do they.