Capping mortgages

the_flying_pig

apologies if already posted.

Wake-up! It's house price bubble time [written, by the way, by a strongly left leaning chap who has a very strong ideological opposition to higher interest rates].

IveSeenTheLight

Graham_Devon wrote: »

I'm not too sure that would be the case. To save nearly a whole years salary when also facing current living expenditure would seem quite a task.

My wife and I lived on a single salary which saving the second salary for a number of years to place us where we are now.

If you have the desire, the opportunity will be there fore you.

How much do you really want it?*

*General question, not specifically meant you

IveSeenTheLight

Graham_Devon wrote: »

Lots. And I've replied to it lots too.

All you are stating is that housing is affordable to those who can afford it.

Also, it's been iterated there is not enough properties for it to be affordable for all.

You'd need a massive building program.

Yet here we are again, discussing the same old points.

By the way, if properties were affordable for all, I'll buy a few more as well so I can have a countryside and other retreats around the country

michaels

There also seems to be a strong desire to ignore all the affordability stuff just brought in. To me it is obvious that the higher ones income the bigger proportion one can afford to spend on a mortgage and therefore the higher income multiple one is safe with. And I bet if you look at the high multiple mortgages they are not going to Mr and Mrs average income earner but to those on several times this income who if the sh*t hits can get by spending as little on food and going out as everyone else thus freeing up lots of income to cope with rising interest rates.

TickersPlaysPop

This thread hasn't mentioned the possibility of making mortgages affordable by increasing the loan term. The Bank of England could cap loan to wage ratio, but the lenders could increase the loan term. This is a situation that is between the elite owning most property and many owning their own home, but it is not one I would look fwd to. Very long term mortgages would be the banks sucking more life and money out of society.

I think talking about the data in terms of averages is misleading, and we should also look at the loan to value data alongside the loan to wage. Banks are happier to loan at high multiples of income if there is a significantly large deposit. This will skew the data and lead us to draw incorrect conclusions.

If we have a supply/demand issue at the moment.... policy for consideration....

Only allow new builds to be purchased by owner occupiers.... at least for the first 6 mths of being on the market. This will reduce demand and pressure on prices increases and allow the help to buy to continue.

CLAPTON

TickersPlaysPop wrote: »

Only allow new builds to be purchased by owner occupiers.... at least for the first 6 mths of being on the market. This will reduce demand and pressure on prices increases and allow the help to buy to continue.

what percentage of new builds are sold to small landlords?