Paying the mortgage

John1993_2

Tancred wrote: »

Why? If you have enough savings to make this offset mortgage work, and you do need quite a lot, why not simply pour the money into the equity in the first place?

Optionality. Offfset mortgages are popular among colleagues here in rates trading as we understand the vaue of the option to access or deposit funds at will.

If it's all in equity, and you decide that you suddenly need it, there's quite a hiigh chance that it's at a time when the bank is not keen to lend it back to you.

[Deleted User]

Tancred wrote: »

Well, I've seen lots of young people with little kids in my area (Reading/Wokingham/Bracknell) buying 4 bedroom detached houses for £350k as if they were bags of sweets. It makes you wonder. I assume that parents are getting ever more generous - probably spooked by the fear (terror) that their offspring might have to live with them for goodness knows how long. £100k deposits are not unusual in this area among typical young middle class buyers.

According to MSE's calculator a person on an average wage in the UK (£24k) could expect to borrow £96k maximum. If there are two of them that goes up to £136k. Still well below the average price of a house, let alone £350k. Of course, if you borrow that much you will find it pretty hard to have a child and take maternity leave.

The MSE calculator suggests that two people would need to both be earning around £65k a year each to get a £350k mortgage. If one wants to be a full time parent the other would need to be on £90k/year.

Reading is clearly full of very well off professionals on enormous salaries. People who think that is normal are not living in the real world.

wotsthat

DELETED USER wrote:

According to MSE's calculator a person on an average wage in the UK (£24k) could expect to borrow £96k maximum. If there are two of them that goes up to £136k. Still well below the average price of a house, let alone £350k. Of course, if you borrow that much you will find it pretty hard to have a child and take maternity leave.

You've discovered that a person on an average wage can't buy the averagely priced house? This won't be news to anyone.

I think this has always been the case.

OffGridLiving

wotsthat wrote: »

You've discovered that a person on an average wage can't buy the averagely priced house? This won't be news to anyone.

I think this has always been the case.

Not as a first time buyer, that's for sure.

John1993_2

DELETED USER wrote:

So your plan is to finish university at say 22 and then work until you are 42 before settling down? Most women will find it hard to have children by that point. Young people need somewhere reasonable to live and have a family.

Of course if you graduated in 2008 you could add another 10 years to that, since there are no jobs even for well qualified graduates.

Of course there are jobs for well qualified graduates. I'll pay them 60k in year one, then increase it by 30-40% for a fair few years afterwards.

And no, my plan was to finish my doctorate in particle physics at 25, to earn 100k per year by 28, and £1m per year by 35.

I then married a 30 year old who also earned a few hundred thousand per year.

But why personalize this, I'm not average?

What was your plan?

[Deleted User]

Aren't you extremely lucky. What does it have to do with young people not being able to afford a cardboard box to live in?

Thrugelmir

John1993 wrote: »

Rubbish. Utter rubbish. Why do people with no real understanding of investment banking write this stuff?

Investment banking does serve a purpose. However much of the activity in the boom years didn't. Well documented now, after the event.

Thrugelmir

OffGridLiving wrote: »

I thought Thrugelmir worked in finance/banking?

Not correct. Spent much of my working life in salvage operations.....;)

Loughton_Monkey

DELETED USER wrote:

Aren't you extremely lucky. What does it have to do with young people not being able to afford a cardboard box to live in?

Nothing, really, I suppose.

They can't afford cardboard boxes primarily because (a) they didn't do particularly well at school..... and/or (b) they spend every penny they earn and cannot dream of saving enough for their retirement or for a house. They would rather have the mobile phone....

Any such people you know, may I suggest they hang around outside a large Curry's or similar where they routinely chuck out old boxes used for fridges etc....

I'm sure they would oblige.

[Deleted User]

Longhton, you are not paying attention. We are talking about well educated graduates. Rent is crippling. You yourself didn't have to scrimp and save, you apparently got a fantastically well paid job and became a millionaire. You have no idea what life in the real world that most of us live in is like. Hint: a Tenner a month for a mobile phone isn't going to add up to a deposit on a house in a normal human lifespan.

I'm starting to think you are just trolling now.