Is it really that expensive?

Cardew

DragonQ wrote: »

Not necessarily a good thing - many people who comfortably afford their mortgages now won't be able to if the rates double. Could be a real problem if these 5% deposit mortgages are being given out willy nilly (I have no idea if they are or not).

Who was arguing it was a good thing?

Low interest rates enable more money to be borrowed, and thus house prices rise to reflect that position.

Quote = Sulphate

That doesn't change the fact that you now have to earn more in real terms to be accepted for a mortgage no matter what the interest rate is.

I disagree interest rates are a huge factor in how much people can borrow on a mortgage.

For years Building Societies allowed a mortgage to be 2.5 times annual salary of the highest earner; you might persuade the BS manager to allow a multiple of 3.0 if both were earning.

Now with the lowest interest rates ever seen, it is possible to borrow up to 5 times salary.

BBC News - How to be a first-time buyer

http://www.bbc.co.uk/news/business-17193609
28 Feb 2012 ... In some instances you can borrow a maximum of five times your single or joint
income, but if you have a family or large outgoings, this could be ...


http://www.your-move.co.uk/mortgages/how-much-can-i-borrow

lstar337

Cardew wrote: »

Now with the lowest interest rates ever seen, it is possible to borrow up to 5 times salary.

Which sadly, still wouldn't buy me even half a house at current prices.:(

worried_jim

lstar337 wrote: »

Which sadly, still wouldn't buy me even half a house at current prices.:(

Move to Burnley Lancashire- it has the most affordable housing in England. £28k for a two bedroom terrace that is livable.

Ecodave

DragonQ wrote: »

It's a flat. I can't get cavity wall insulation for just my section and there's no way the entire population of the building will agree to a large outlay like that, especially when most of us rent.

I have double glazing, and cavity wall insulation is the only recommendation on the EPC, so it's basically as good as it's gonna get.

If your flat is in a 3 (or more) storey building, then you may be able to get the cavity wall insulation paid for under the Energy Company Obligation scheme. You would still need to get the other occupants to agree, but once they find out it is free, they might go for it.

tuggy12

PollySouthend wrote: »

there are other cold countries, but the Nordics, germany and that have a much higher wage.

that is why the UK has the 2nd highest level of fuel poverty in europe, after Slovakia.

The UK has the cheapest domestic Gas / Electricity in Western Europe:


http://www.energy.eu/

[Deleted User]

horses for courses. By choice we don`t have sky, mobile phones, don`t smoke or buy take aways etc. We live a lovely comfortable life and choose to be warm in winter. Our house is insulated to code 5 and our total yearly energy bill is <£670

The point is that we chose ( and were able) to buy a house with this level of insulation and we can afford to live well and without energy worries. It is a very complex topic, we all know people who moan their heads off about energy costs yet choose not to insulate yet spend much more on non essentials but there are many many people who genuinely cannot afford the £4 a day.

Living_proof

I have chosen to move recently to a less desirable area where a very modern, well insulated house is affordable. I feel energy costs for domestic fuel and petrol will be a huge chunk of retirement income in the future and the longer I can walk to town for services and provisions rather than drive, the better off I will be. Whether it's expensive or not, it's essential.

lstar337

worried_jim wrote: »

Move to Burnley Lancashire- it has the most affordable housing in England. £28k for a two bedroom terrace that is livable.

Sorry, don't really fancy the 270 mile commute.:cool:

PollySouthend

Trebor16 wrote: »

And they also have much higher costs in the Nordic countries. Take Norway for example. When I visited in August 2012 I paid between £1.51 and £1.67 for a litre of petrol. In the UK it was £1.33 a litre. Beer (always a good indicator ) was £7 for a pint (ouch) and eating out in a restaurant or even a fast food establishment was twice as much as in the UK. Even the cost of a pint of beer in a supermarket was more than £2.50.

As for the higher wages, according to this link (which is for 2011) when it comes to disposable income the UK is ranked 6th which is above the Nordic countries and Germany.

http://en.wikipedia.org/wiki/List_of_countries_by_average_wage

You can't just look at the wages earned and then make statements, you have to look at the bigger picture. For example, sales tax on motor vehicles in Denmark runs at 140%:eek: so cars are way over the price we pay in the UK.

Norway is the most expensive country in Europe, and probably the world so its a very bad example to pick!

It doesn't change the fact that the UK has 2nd worst for fuel poverty in europe.

The UK is second only to Estonia among European nations for the number of people who are struggling to pay their energy bills, according to research by the fuel poverty alliance Energy Bill Revolution.

http://www.itv.com/news/story/2013-10-25/fuel-poverty-energy-david-cameron-government/

PollySouthend

Bluebirdman_of_Alcathays wrote: »

Fatuous garbage, and an entire incapability to grasp the point the OP was making. Your Harrods argument remains stupid.

No you remain stupid for missing the whole point of my post, let me repeat it;

It's all relative.

This post by the aptly named "give me money" just sounds like some retired person with a generous pension that bought their house when it cost peanuts and has no idea the struggle many people have these days.