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Debate House Prices


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Mortgages at most affordable for 14 years

135

Comments

  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ukcarper wrote: »
    If they use 70% all the time then that's what matters it's a comparison over time.

    Precisely right.
    “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”
  • Loughton_Monkey
    Loughton_Monkey Posts: 8,913 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    HAMISH_MCTAVISH wrote: »
    Precisely right.

    A perfect example of tautology, Hamish.

    [Look it up. I doesn't mean the study of elastic]
  • ILW
    ILW Posts: 18,333 Forumite
    Be i bit odd if it was any different with IRs being the the lowest they have ever been.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    I'm sure there's a degree of nervousness. As no one is sure what the future holds. Expectations are that rates will move in 2015 possibly. With a new 25 mortgage there's many years to go for those taking out a mortgage now.
    What a strange comment.

    Surely people want to take out their mortgages when mortgage rates are lower allowing them to repay capital quicker.

    Only a fool would wait until mortgage rates were higher before taking one out. The double whammy of house prices rising would be a massive blow, even if house prices fell you would have more than likely have saved money.
  • thescouselander
    thescouselander Posts: 5,547 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ukcarper wrote: »
    If they use 70% all the time then that's what matters it's a comparison over time.

    No, its not. 70% is just an average. In any given year the actual LTV could vary by quite a bit either side of the value so this comparison of affordability it nothing more than an academic exercise based on a very crude model of reality.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    thescouselander wrote: »
    No, its not. 70% is just an average. In any given year the actual LTV could vary by quite a bit either side of the value so this comparison of affordability it nothing more than an academic exercise based on a very crude model of reality.

    the formula used depnds upon what you want to measure/know


    what do you what to measure?
    what formula do you want to use?
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    thescouselander wrote: »
    No, its not. 70% is just an average.

    The point is that the series uses the same criteria over time to provide a consistent measure.

    In any given year the actual LTV could vary by quite a bit either side of the value so this comparison of affordability it nothing more than an academic exercise based on a very crude model of reality.


    Or in other words.... "individual circumstances may vary".

    I'm glad you explained that this is just a representative data series based on averages.

    I had assumed that every single buyer in Britain bought identical houses at identical prices on identical incomes until you cleared that up.

    Phew...:o
    “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”
  • thescouselander
    thescouselander Posts: 5,547 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    HAMISH_MCTAVISH wrote: »
    The point is that the series uses the same criteria over time to provide a consistent measure.





    Or in other words.... "individual circumstances may vary".

    I'm glad you explained that this is just a representative data series based on averages.

    I had assumed that every single buyer in Britain bought identical houses at identical prices on identical incomes until you cleared that up.

    Phew...:o

    The point is a "measure" of what? The stats have simplified things down so much is it not representative of reality. It is only a measure of affordability within an oversimplified model of the housing market.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    thescouselander wrote: »
    The point is a "measure" of what? The stats have simplified things down so much is it not representative of reality. It is only a measure of affordability within an oversimplified model of the housing market.



    yes of course it is :


    what sort of information do you want to have ?
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    CLAPTON wrote: »
    yes of course it is :


    what sort of information do you want to have ?

    It's quite surprising how some people on here can't see the value of a series of data using constant values.
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