Is it really that hard?

sebadee

What a complete fail of a post, did not even check out your own figures before posting. You're either a troll or rather dense.

wymondham

ipads, iphones, sky and drinking out. sorry just know I need to add these words to this thread in order to make it complete

Maelwys

chewmylegoff wrote: »

They wouldn't have to worry about settling your estate if you died in negative equity with no life insurance either - your mortgage debt doesn't get transferred onto another person unless it was a joint mortgage with that person.

True, but in that situation the house would likely need to be sold to pay for the mortgage (which is in my name only). At the very least the legal hoops could get fairly messy. With the cover in place, the mortgage would be paid, and my beneficiaries would get the house plus any savings I've built up.

I get the critical illness insurance bit but personally I don't see the point of having life cover to pay off a mortgage unless someone else is on the mortgage with you.

I suppose it is easier to take that viewpoint though when work provides you with both a lump sum on death and critical illness cover as mine do.

If I get sick, for the first year I'd get sick pay from work - 6 months full and 6 months half. After that, my private Income Protection Cover would kick in. To help deal with the effects of the illness I'd get a payout for short Hospital stays from my Income Protection Insurance, along with the payout from my Critical Illness Cover if I'm hit with something severe.

If I die, there's no lump sum from my employer itself, but there is from my pension scheme (2x annual earnings lump sum, plus a "survivor's mortgage" for any dependents) and a tiny lump sum from the Income Protection cover (region of £210).

Once the mortgage is paid off, I'm probably just going to keep the Earnings Protection Policy going until retirement, and drop the Life and Critical Illness cover in favour of a bog standard Health Insurance Policy...

I might not be covered for *all* eventualities, but it helps me sleep a bit easier at night knowing that if I get ill or die then at least I (or the ones I care about) won't have to worry too much about paying the bills or keeping a roof over my/their head(s).

This thread needs to be taken off at a tangent anyway...

Agreed! :rotfl:

danothy

MARTYM8` wrote: »

Yes – these young people just need to spend a bit less on ipads, foreign holidays, Sky and beer. If they did funding a £300k mortgage on a £16k salary is perfectly affordable!

Don't know what you're on about, mate. You'd have a good £50 left over after the mortgage payment for booze and fags, maybe even a tattoo once in a while. You'd want for nothing, no need to cut back.

maddermanblue1_2

bigfreddiel wrote: »

I get really fed up hearing about how hard it is for youngsters these days. We'll not only youngsters, anyone really.

When I started work my pay as a graduate was £2800/year.

My house cost me £5,000 two bed tiny terrace interest rate 6%

Forty years later my salary is £28,000 - 10 fold increase

House prices £250,000 - 5 fold increase and interest rate 0.5%

There's no difference. And there are loads of jobs if you actually want to work!

The problem is youngsters today want the big house, new car, 4k TV, all new furniture, latest mobile phone, Netflix, children, and they want it now.

In my day you saved up for it, and life was tough, second hand furniture, old car, no telephone even, no children till you could afford them an interest rates maxed out at 15%+

So don't bang on telling me how tough it is now, because it just isn't true.

Just my observation on things

fj

You have no idea.
University fees?
Lack of homes being built?
The great social housing sell off?
Council Tax? (Is actually poll tax)
Decrease in jobs available when graduating - think Internship/ work experience with no pay?
Increased DIY landlords?
I admit, food was more expensive those days, but fuel was cheaper.
Increased rents?

I would only dream of a 2 bed terraced house, now, if you are lucky to get a grotty 1 bed flat in a not so nice area now starting at £150k

I earn 28k PA basic, I am single, no dependants, no mortages, no loans, I rent a room in the 'burbs of London, save £900 a month on average (50% take home pay), have £40k in savings built up over 4 years. I am in my mid 30's
I STILL cannot afford a "£250k" tiny 2 bed terraced house. That would be 7.5 x my annual wage with a £210k mortgage.
I refuse to pay for a grotty £150k 1 bed flat.

Your mortgage would be at the time (for 5k) would be 1.7 x your annual salary.

So please sir, where am I going wrong?
This sounds like you started work in the mid 70's am I correct? (40 yrs ago, of course I'm correct!! Enjoy your smugness.

lisyloo

Madder you're doing really well with your savings, however you are trying to live in the most expensive city in the country.
I keep getting told that it's easier in other parts of the country so just out if curiosity could you move? Or do you work in a very London centric industry?

ukcarper

maddermanblue1 wrote: »

You have no idea.
University fees?
Lack of homes being built?
The great social housing sell off?
Council Tax? (Is actually poll tax)
Decrease in jobs available when graduating - think Internship/ work experience with no pay?
Increased DIY landlords?
I admit, food was more expensive those days, but fuel was cheaper.
Increased rents?

I would only dream of a 2 bed terraced house, now, if you are lucky to get a grotty 1 bed flat in a not so nice area now starting at £150k

I earn 28k PA basic, I am single, no dependants, no mortages, no loans, I rent a room in the 'burbs of London, save £900 a month on average (50% take home pay), have £40k in savings built up over 4 years. I am in my mid 30's
I STILL cannot afford a "£250k" tiny 2 bed terraced house. That would be 7.5 x my annual wage with a £210k mortgage.
I refuse to pay for a grotty £150k 1 bed flat.

Your mortgage would be at the time (for 5k) would be 1.7 x your annual salary.

So please sir, where am I going wrong?
This sounds like you started work in the mid 70's am I correct? (40 yrs ago, of course I'm correct!! Enjoy your smugness.

If it was the mid 70s I would say he didn't live in the London suburbs. I lived and worked in South London in the early 70s and was earning £1.5k (people doing same job now earn £35k) I could not afford to buy in the area I worked and had to move 30 miles further out and commute the house cost £8k. I did look at a 1 bed flat in Morden that was £6k.

Broken_Biscuits

Generali wrote: »

Do grads actually earn £40k? As half of kids are now going to Uni it seems pretty unlikely that many of them are earning about 50% above the median household income.

I can think of a couple of ways that you could walk out of Uni (with a maths/IT PhD) into a job earning a solid 6 figure sum but there are probably fewer than 100 jobs like that worldwide.

My company has just done a bit of a recruitment drive. A number of grads have been employed- starting salary is approx. £21500.

mostly law degrees - i doubt they would be here if they could get more appropriate jobs/pay to their qualifications.

Cornucopia

We're still faffing around with the basic numbers, here.

There are significantly more graduates coming along than there were back in the 70s and 80s. Therefore graduate salaries for anyone who is not absolutely top-tier are going to be suppressed. It's simple economics.

At the same time, the property market in London and the South East is charging ahead.

What it comes down to is that there were always compromises that had to be made, and there still are. Are those compromises more onerous now than then? Maybe. Are they significantly so? I doubt it.

http://www.dailymail.co.uk/news/article-2905829/Aldi-s-42k-starting-salary-graduates-City-banks-offer-50k-student-job-hunters.html

chucknorris

Generali wrote: »

Do grads actually earn £40k? As half of kids are now going to Uni it seems pretty unlikely that many of them are earning about 50% above the median household income.

I can think of a couple of ways that you could walk out of Uni (with a maths/IT PhD) into a job earning a solid 6 figure sum but there are probably fewer than 100 jobs like that worldwide.

The going rate for (good) QS (quantity surveying) grads in London last year was about £26k.