Paying the mortgage

[Deleted User]

The average wage in the UK is about £23-24k, so a couple would pull in £46-48k.

My partner doesn't work but I have a "good" job, or at least I think it is. Well above average salary. Without assistance the maximum mortgage I can get will be around £130k, enough to buy a (small) garden shed.

My parents were able to afford a much nicer house on a single lower salary. The boomers did deliberately set out to create this situation by voting for governments whose policy was to push up house prices by both increasing demand and reducing supply. They now have very large assets to live in and are on the tail end of their mortgages, while the younger generations suffer the consequences.

ukcarper

DELETED USER wrote:

The average wage in the UK is about £23-24k, so a couple would pull in £46-48k.

My partner doesn't work but I have a "good" job, or at least I think it is. Well above average salary. Without assistance the maximum mortgage I can get will be around £130k, enough to buy a (small) garden shed.

My parents were able to afford a much nicer house on a single lower salary. The boomers did deliberately set out to create this situation by voting for governments whose policy was to push up house prices by both increasing demand and reducing supply. They now have very large assets to live in and are on the tail end of their mortgages, while the younger generations suffer the consequences.

I don't know if you know but house prices are cyclical so it depends when in cycle you buy and in relation to earnings prices have been as high as thy are now in the past.

As we are talking average according to Land Reg the price of an average terrace house is £122k and with a 10% deposit you would be able to afford £145k.

grizzly1911

DELETED USER wrote:

My parents were able to afford a much nicer house on a single lower salary. The boomers did deliberately set out to create this situation by voting for governments whose policy was to push up house prices by both increasing demand and reducing supply. They now have very large assets to live in and are on the tail end of their mortgages, while the younger generations suffer the consequences.

It may surprise you to find out that housing never really registered with many a s an issue. They simply, saved, brought a home and got on with life. The obsession with HPI is a modern issue that has taken hold later. the real choice was simply buy and commit or rent.

One of the reason governments are keen to see rising prices is it allows debt recycling at ever greater levels against nebulous assets giving a false economic boost. The fact successive governments have now taken up all the slack in the system and are now forced to guarantee further buying shows up against the wall the system is.

[Deleted User]

ukcarper wrote: »

I don't know if you know but house prices are cyclical so it depends when in cycle you buy and in relation to earnings prices have been as high as thy are now in the past.

So your answer is wait 10 years for prices to fall. Not everyone has that option.

As we are talking average according to Land Reg the price of an average terrace house is £122k and with a 10% deposit you would be able to afford £145k.

That's the average for the whole country. The average in the south is very much higher.

[Deleted User]

grizzly1911 wrote: »

It may surprise you to find out that housing never really registered with many a s an issue. They simply, saved, brought a home and got on with life. The obsession with HPI is a modern issue that has taken hold later. the real choice was simply buy and commit or rent.

It may surprise you to learn that before the 80s a lot more people rented. During the 80s there was a big drive to own, and people lapped it up. I hear them talking about how they wanted to buy and how Thatcher helped them do it, and how wonderful all that was. Wonderful for them.

grizzly1911

DELETED USER wrote:

The average wage in the UK is about £23-24k, so a couple would pull in £46-48k.

.

Think you started with averages.

DELETED USER wrote:

That's the average for the whole country. The average in the south is very much higher.

Perhaps your salary isn't above the SE average.

Is there a valid reason for your partner not working?

ukcarper

DELETED USER wrote:

So your answer is wait 10 years for prices to fall. Not everyone has that option.


That's the average for the whole country. The average in the south is very much higher.

Not the answer just a fact.

Average wages higher in the South.

michaels

DELETED USER wrote:

The average wage in the UK is about £23-24k, so a couple would pull in £46-48k.

My partner doesn't work but I have a "good" job, or at least I think it is. Well above average salary. Without assistance the maximum mortgage I can get will be around £130k, enough to buy a (small) garden shed.

My parents were able to afford a much nicer house on a single lower salary. The boomers did deliberately set out to create this situation by voting for governments whose policy was to push up house prices by both increasing demand and reducing supply. They now have very large assets to live in and are on the tail end of their mortgages, while the younger generations suffer the consequences.

This makes no sense. Santander will lend me 5x income with DW not working and 3 dependent kids. How can you be earning well above average and yet only able to borrow 4x average salary?

[Deleted User]

grizzly1911 wrote: »

Is there a valid reason for your partner not working?

Yes, there is.

[Deleted User]

michaels wrote: »

This makes no sense. Santander will lend me 5x income with DW not working and 3 dependent kids. How can you be earning well above average and yet only able to borrow 4x average salary?

They best they will do is £145,000. That is over 30 years and with the Government's Help to Buy scheme boosting the deposit to otherwise unaffordable levels. At that rate I might just finish paying it a year before I retire.