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

ukcarper

Graham_Devon wrote: »

Yer, possible being the operative word.

Should we really be encouraging this? As that's what is happening. It;s on the BBC news that it's all ok and people will just cope. That's encouraging it. He said wages are not out of kilter with house prices, basically saying it's all perfectly do-able. That, in my mind, is encouraging people to get in. Theres no questioning of his "it's all ok" theory, but we can see how tight it would be.

One emergency would not be able to be covered on those figures. Just one.

Whose encouraging anything we are just explaining that people will cope if rates rise they may not like it but they will cope as I did when my mortgage repayments reached 60% of my take home pay in the 80s

jackieblack

Graham_Devon wrote: »

Do you have a couple of growing kids and raise them on less than the quoted figures?

Just wondering how you manage with that monthly budget to install such a system.

Teenage now, (more expensive than small children)

And not that it's relevant (or anyone else's business) but I received a small inheritance and we worked out that the solar pv system would be a better long term investment than paying that amount off the mortgage.

I believe your amount of £1068/£1214 would only occur in the event of a rate rise to 8% (if I've read the posts correctly).
As rates are nowhere near that at the moment, now would be the time to build a cushion for when/if the rates rise to 8%

Maybe it's an old-fashioned concept but I understand people used to consider how an increase in rates would affect their ability to live/pay bills BEFORE taking out a mortgage.

CLAPTON

Graham_Devon wrote: »

I am being clear. My whole thread is clear. You appear to be turning my thread around and asking me to predict repo's. This isn't what this thread is about.

What would you cut from the list of expenses I listed? Or do you firmly believe £264 per month is enough for everything else once absolute bare essentials have been paid?

My problem is, too many people appear to be stating "families will just cut back". I want to know on what. You've said sky, but frankly, most people don't have sky packages, and definately not at £70 a month.

people WILL cut back


on average :

utilities at 150 pm? easy to cut
car expenses ... easy to cut
food a little more difficult but needs must

grizzly1911

CLAPTON wrote: »

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

They will do anything to keep the house which will also include using personal finance and credit cards to bridge the gap digging a bigger hole potentially.

Lots of people wouldn't be able to get to work without a car. More so that work unsocial work patterns. The infrequent expensive buses by us stop running after about 19:00.

Again it depends if you are not already running on minimalistic consumption and can actually cut back more.

You get to the point with all this as to whether this sort of person should have the commitment or be being encouraged top take on the commitment.

Ronaldo_Mconaldo

Surely the answer is obvious; they'll have no choice but to find ways of saving. Interest rates will go up eventually, so use this time to pay down your debts. If you can't do that then tough !!!!. You'll get your home repossessed and someone else can movie in.

We can start petitions and start crying about this mythical "vulnerable" group of people that everyone seems to,care so mucha bout but rates will go up so hard luck.

jackieblack

grizzly1911 wrote: »

Lots of people wouldn't be able to get to work without a car. More so that work unsocial work patterns. The infrequent expensive buses by us stop running after about 19:00.

Motorbike? (/moped/scooter)
Far cheaper to run - not much fun in the wet/cold but some sacrifices can be made if reducing outgoings is a priority

Jack_Johnson_the_acorn

I'll give my personal breakdown...

Bought December 2011

90%mortgage currently 4.9% £114,000 Mortgage
Combined income gross £48,000 pa roughly.

None essentials monthly:
Sky £70
2mobiles £70
Classic car upkeep £40
Food £350 probably excessive for 2-possibly save £100
Dinners at work £50

I budgeted for rates upto 12% we'd struggle to the point of having to cut out all of the above and no holidays or going to expensive hair salons etc..

grizzly1911

jackieblack wrote: »

Motorbike? (/moped/scooter)
Far cheaper to run - not much fun it the wet/cold but some sacrifices can be made if reducing outgoings is a priority

Valid point.

We did purchase the wife a small motorbike when we were first married. (She had the shorter commute and no motorways;)).

A bit more risky if it is the sole breadwinner too.

Graham_Devon

CLAPTON wrote: »

people WILL cut back


on average :

utilities at 150 pm? easy to cut
car expenses ... easy to cut
food a little more difficult but needs must

Out of interest how do you cut down on car expenses?

Gas, electric, water and landline, yes, could be cut down a couple of hundred quid, though you'd really struggle, for a family of 3-4. At least IMO. Unless we are going without a landline too now?

ruggedtoast

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

I bloody won't. Sky will cut me off long before the bank will. The bank can go and swivel on it.