Just a thought

marathonic

Pobby wrote: »

However I do remember that the monthly repayment mortgage on the first house was £60 a month. Again compare that to an income of say £400 a month. With my wife working earning about half of that, actually a good bit more, do the percentage calculations.

Was this in 1978?

You refer to an estimated income of £600 per month, or £7,800 annually. Based on the ONS figures above, this is a household income 70% above average household income.

Lets assume a low interest rate (for the time) of 12% and a 25 year term. The £60 a month would service a mortgage of £4,654.

Assuming a high, 25% deposit, this would give a house price of £6,205.

The mortgage and salary figures given above would suggest that a household with an income of 70% higher than average bought a house valued at just under 35% of the value of the average house.

With today's' household income of £38,547 and average house price of £244,119, that would equate to a household earning £65,500 buying a house valued a bit over £85,000.

ukcarper

Bank rate averaged 15% in 1979 £11k at 15% over 25 years £141 a month. £250k at 3.5% over 25 years is £1264.

marathonic

ukcarper wrote: »

Bank rate averaged 15% in 1979 £11k at 15% over 25 years £141 a month. £250k at 3.5% over 25 years is £1264.

But, whilst £250k would buy the average house today, £11k wasn't anywhere near enough in 1979.

ukcarper

Pobby wrote: »

Yes agree about discrimination regarding women. However I do remember that the monthly repayment mortgage on the first house was £60 a month. Again compare that to an income of say £400 a month. With my wife working earning about half of that, actually a good bit more, do the percentage calculations.

I remember my first mortgage in 1972 was £44 a month take home pay £110.

PasturesNew

marathonic wrote: »

Also worth noting is that income tax in 1978 was at a basic rate of 33% and a top rate of 83%. :eek:

My first job pay packet gave me £184 take home from a £3k salary. £250 pay; £66 tax/NI.

After 6 months I tried to borrow £140 from the bank in the same building and was turned down (for a moped as I was cycling 6 miles each way each day).

chewmylegoff

You may not be aware of this, but it isn't the 70s anymore and it isn't ever going to be the 70s again.

marathonic

chewmylegoff wrote: »

You may not be aware of this, but it isn't the 70s anymore and it isn't ever going to be the 70s again.

We're 55 years away!!!

PasturesNew

chewmylegoff wrote: »

You may not be aware of this, but it isn't the 70s anymore and it isn't ever going to be the 70s again.

I don't care what you say, I'm keeping my flares!

ukcarper

Thrugelmir wrote: »

You mean a lot less. Building societies used to offer 2.75 times +1 or 2.5 times joint. Also a couple of years savings was a prerequisite. As mortgages were effectively rationed.

I managed to get much more than that in 1972 over 3x joint

ukcarper

PasturesNew wrote: »

I don't care what you say, I'm keeping my flares!

Looking at 70s wedding photos is always good for a laugh mine are particularly good.