House Buying Remains Unaffordable at 17.8% of take home pay...

michaels

Or not, in fact mortgage costs are approaching a recent low at only 17.8% of take home pay for the average FTB.

http://www.bbc.co.uk/news/business-37987696

Then again I know someone who spends £70 per month on their iPhone package - on a 2 year IO fix at 0.99% that iPhone is costing them as much as an extra 84k of mortgage would.....

wotsthat

michaels wrote: »

Then again I know someone who spends £70 per month on their iPhone package - on a 2 year IO fix at 0.99% that iPhone is costing them as much as an extra 84k of mortgage would.....

In the forumites favourite place (Stoke) your friend has a choice of 565 properties available for less than the cost of running their iPhone.

michaels

Then again someone else I know bought a second (holiday) home (before the stamp duty change) because it was cheaper per month than storage for their unneeded furniture after a house move, which I suspect has not helped housing availability....

chucknorris

michaels wrote: »

Or not, in fact mortgage costs are approaching a recent low at only 17.8% of take home pay for the average FTB.

http://www.bbc.co.uk/news/business-37987696

Then again I know someone who spends £70 per month on their iPhone package - on a 2 year IO fix at 0.99% that iPhone is costing them as much as an extra 84k of mortgage would.....

They must be really rich, I would never spend that much on a mobile.

westernpromise

wotsthat wrote: »

In the forumites favourite place (Stoke) your friend has a choice of 565 properties available for less than the cost of running their iPhone.

Which if you think about it is a hilarious statistic.

ukcarper

I think property in my area is less affordable than it has been in the past. I first bought in 1970s at a time when prices were fairly high but if I was earning the equivelent money now I would not be able to buy. I don't think it's the deposited that's the problem as I think if you make sacrifices you should be able to save. But to buy the same house I bought in the 70s earning equivelent salaries we would need a mortgae of over 5x joint income which I think would be difficult to find.

GreatApe

We have the American banks and bankers to thank for fixing the artificial unsustainable high rates the central bankers were forcing onto the economy.

padington

michaels wrote: »

Or not, in fact mortgage costs are approaching a recent low at only 17.8% of take home pay for the average FTB.

http://www.bbc.co.uk/news/business-37987696

Then again I know someone who spends £70 per month on their iPhone package - on a 2 year IO fix at 0.99% that iPhone is costing them as much as an extra 84k of mortgage would.....

Funny you should say that, I've just downgraded to a free hand me down 2011 Samsung phone with a 10 day battery life and £5 a month bill.

Apparently it's not smart though.

I disagree.

Super Jewel quest rocks.

Dird

Is 17% gross or net? Either way, 17% or 25% isn't that much of a difference
My mortgage costs are about 13.5% of net salary, about 10% after factoring in extra incomes

Intersting graph under wages section: http://www.thisismoney.co.uk/money/mortgageshome/article-2462753/How-items-cost-risen-line-house-prices.html

rtho782

I wish.

Our FTB mortgage is 38% of our joint take home pay.

MacMickster

michaels wrote: »

Or not, in fact mortgage costs are approaching a recent low at only 17.8% of take home pay for the average FTB.

rtho782 wrote:

I wish.

Our FTB mortgage is 38% of our joint take home pay.

I'm never a fan of these percentages.

If joint take home pay is only £1k per month then you are not going to be able to buy no matter what percentage of take home pay would be required for a mortgage.

If joint take home pay was £2k per month then 17.8% of net pay as a mortgage should allow you to get by, leaving around £1650 per month for bills, food, travel and leisure.

38% of £3k leaves you better off than the couple paying only 17.8% of their £2k.

The problem with these ultra-low short-term fixed rates is that you need to be able to afford whatever the going rate is when that short-term fix comes to an end. In only 2 years, salary is unlikely to have increased significantly, but the mortgage cost clearly could.