Think about the mortgage you are taking on, the debt you are taking on

CLAPTON

I wonder how many people in 25 years time will regret buying a nice 4 bed home and wish they had bought a tatty one bed flat instead?

macaque_2

HAMISH_MCTAVISH wrote: »

Because the banks have jacked up their margins above base to record highs.

I agree! So how come the regulators are allowing lenders to get away with false claims about affordability?

The mortgage interest payments for a small flat in London or a modest family home in the southeast come to more than the total take home pay of an average employee. A person on minimum wages would have to work 80 hours a week just to meet the interest charges.

Regards

Macaque (planet earth)

CLAPTON

macaque wrote: »

I agree! So how come the regulators are allowing lenders to get away with claims about affordability?


The mortgage interest payments for a small flat in London or a modest family home in the southeast come to more than the total take home pay of an average employee. A person on minimum wages would have to work 80 hours a week just to meet the interest charges.


Regards


Macaque (planet earth)

you can get a one bed flat in Rainham for 120,000

so assuming a 10,000 deposit that's a mortgage of 110,000

at 5% that's 635pm
at 4% that's 576pm

so at £6 per hour one needs to work about 25 hours per week
or if a couple that's 12.5 hours per week each

HAMISH_MCTAVISH

CLAPTON wrote: »

you can get a one bed flat in Rainham for 120,000

so assuming a 10,000 deposit that's a mortgage of 110,000

at 5% that's 635pm
at 4% that's 576pm

so at £6 per hour one needs to work about 25 hours per week
or if a couple that's 12.5 hours per week each

Please don't let facts get in the way of a nice rant....;)

Generali

CLAPTON wrote: »

No I don't expect him to be able to predict the future anymore than I expect the man in the street to do so either.

He could however give some guidance than the state the bloody obvious.

What guidance do you want? All he can really say is that based on the historical record, mortgage rates are likely to be between 2 & 20% over the next 30 years. It's pointless.

This is how Central Bankers communicate. The nudge and they nurdle. It's a bit like how Thorpe used to bat on a tricky wicket.

CLAPTON

Generali wrote: »

What guidance do you want? All he can really say is that based on the historical record, mortgage rates are likely to be between 2 & 20% over the next 30 years. It's pointless.

This is how Central Bankers communicate. The nudge and they nurdle. It's a bit like how Thorpe used to bat on a tricky wicket.

what I am saying it that he said absolutely nothing of value.

so in the end you do whatever you think is right: if you are wrong the smug sod can say I told you so.

Why am I paying him a huge salary for that?

Generali

CLAPTON wrote: »

what I am saying it that he said absolutely nothing of value.

so in the end you do whatever you think is right: if you are wrong the smug sod can say I told you so.

Why am I paying him a huge salary for that?

And this is a tiny part of what he does for a living.

Generally people expect the Guv'nor of the BoE to be interviewed now and again.

Ok, you don't want him to say what be said but it's hard to see what else he can say.

Actually that rates won't be extremely low forever quite possibly isn't in many house buyers' calculations.

CLAPTON

Generali wrote: »

And this is a tiny part of what he does for a living.

Generally people expect the Guv'nor of the BoE to be interviewed now and again.

Ok, you don't want him to say what be said but it's hard to see what else he can say.

Actually that rates won't be extremely low forever quite possibly isn't in many house buyers' calculations.

of course I understand he does a few other things:
and it's not his fault if the press bother to repeat his worthless musings as if they are important or have any significant meaning.

As he is unwilling to give any significant guidance, it is not surprising that ordinary people have no idea what calculation they should be carrying out.

however I seriously doubt there are many people sitting in their house to day, saying they should have bought a cheaper house 25 years ago but quite a few who wished they had bought a more expensive one.

macaque_2

CLAPTON wrote: »

you can get a one bed flat in Rainham for 120,000
so assuming a 10,000 deposit that's a mortgage of 110,000
at 5% that's 635pm
at 4% that's 576pm
so at £6 per hour one needs to work about 25 hours per week
or if a couple that's 12.5 hours per week each

For person working central London, this means 4 hours commuting per day and an annual season ticket cost of £4,000. This is also a one bedroom flat. What if the person is married with children?


Whilst this may meet your need to justify unrealistic house prices, it stinks of 3rd world standards.

CLAPTON

macaque wrote: »

For person working central London, this means 4 hours commuting per day and an annual season ticket cost of £4,000. This is also a one bedroom flat. What if the person is married with children?


Whilst this may meet your need to justify unrealistic house prices, it stinks of 3rd world standards.

It is not a 4 hour commute into London
Fenchurch Street to rainham is about 35 minutes

what about some-one that works in Rainham?

most people are not on minimum wage

people on min wage with children receive benefits.


If you define 3rd world standards as meaning that minimum wage people can't buy a detached 4 bed house in central London then it truely shows how rediculourly rich we have become.