How did it become acceptable for someone to commit to 25yr marriage to mortgages

chucknorris

Ronaldo_Mconaldo wrote: »

I took out a £120k mortgage over 30 years in 2008 but paid it all off within 8 years. It was easy as well, got married, had 2 kids, went on plenty of holidays. Now living rent and mortgage free.

That's the difference between renting and "owning" and actually owning. If I can do it then anyone can.

I suspect that you are overlooking just how (text deleted by forum team) some people can be.

economic

Ronaldo_Mconaldo wrote: »

I took out a £120k mortgage over 30 years in 2008 but paid it all off within 8 years. It was easy as well, got married, had 2 kids, went on plenty of holidays. Now living rent and mortgage free.

That's the difference between renting and "owning" and actually owning. If I can do it then anyone can.

low rates would have helped you a lot.

iantojones40

Ronaldo_Mconaldo wrote: »

I took out a £120k mortgage over 30 years in 2008 but paid it all off within 8 years. It was easy as well, got married, had 2 kids, went on plenty of holidays. Now living rent and mortgage free.

That's the difference between renting and "owning" and actually owning. If I can do it then anyone can.

So ''anyone'' i.e an average wage household with no additional financial assistance can ''easily'' pay off a £120k mortgage mortgage in 8 years whilst also being able to afford to get married, have 2 kids and enjoy plenty of holidays?

wotsthat

iantojones40 wrote: »

So ''anyone'' i.e an average wage household with no additional financial assistance can ''easily'' pay off a £120k mortgage mortgage in 8 years whilst also being able to afford to get married, have 2 kids and enjoy plenty of holidays?

You're not accounting for the success bias that mortgage selection policies introduce.

i.e. you're more likely to above average.

westernpromise

The average wage includes people on wages that would not buy and never have bought a house. One might as well argue that the average new car at £16k or whatever is unaffordable to someone on the average wage and therefore They Ought To Do Something About the price of cars.

Of course as we all know, new cars are not bought by one person on the average wage, and the price of a new car is not set by reference to what's affordable to people on bicycle money. And neither is the average house.

Herzlos

Ronaldo_Mconaldo wrote: »

I took out a £120k mortgage over 30 years in 2008 but paid it all off within 8 years. It was easy as well, got married, had 2 kids, went on plenty of holidays. Now living rent and mortgage free.

That's the difference between renting and "owning" and actually owning. If I can do it then anyone can.

Ignoring interest, you paid £15k/year onto the mortgage, which is somewhere about £20k of pre-tax salary.

Given that the UK annual wage is about £22k:

The 2013/14 HBAI report gave median household income (2 adults) as £23,556. The provisional results from the April 2014 ASHE report gives median gross annual earnings of £22,044 for all employees and £27,195 for full-time employees.

You're essentially making mortgage repayments that are greater than the average salary, before factoring in things like bills, food, kids, holiday, etc.

So I imagine most average people would never be able to manage it, or they'd never offer 20+ year mortages.

Sure, it's maybe more achievable for the average person who can get a £120k mortgage at a good rate, but that's not everyone. These days you'd probably need a salary well north of £40k and have at least £24k deposit

MyOnlyPost

The German comedian Henning When states:

A mortgage is a device used by people who could not otherwise afford to buy a property to push up the prices so that those who could afford it can't also.

I don't agree with this entirely, I was brought up in the 80's so property ownership has been a permanent fixture in my life but I think that shows the difference between European thinking and British thinking.

Put simply the German attitude is more akin to, if you can't afford it you can't have it.

ukcarper

Herzlos wrote: »

Ignoring interest, you paid £15k/year onto the mortgage, which is somewhere about £20k of pre-tax salary.

Given that the UK annual wage is about £22k:

You're essentially making mortgage repayments that are greater than the average salary, before factoring in things like bills, food, kids, holiday, etc.

So I imagine most average people would never be able to manage it, or they'd never offer 20+ year mortages.

Sure, it's maybe more achievable for the average person who can get a £120k mortgage at a good rate, but that's not everyone. These days you'd probably need a salary well north of £40k and have at least £24k deposit

UK median full time earnings is £28k take home £22.2k so with two people working it's possible.

GreatApe

MyOnlyPost wrote: »

The German comedian Henning When states:

A mortgage is a device used by people who could not otherwise afford to buy a property to push up the prices so that those who could afford it can't also.

I don't agree with this entirely, I was brought up in the 80's so property ownership has been a permanent fixture in my life but I think that shows the difference between European thinking and British thinking.

Put simply the German attitude is more akin to, if you can't afford it you can't have it.

The Germans own a lot of homes, they overbuilt lots of flats which were always rentals and always will be rentals so this skews the figures.

Overall they have something like 21.5 million owner homes while the uk is closer to 17.6 million scaled to population its virtually identical with the uk. The reason the percentage rate is lower in Germany is they simply have a lot more homes per capita.

Also just like in the UK there will be regional variations.

Running_Horse

zagubov wrote: »

Could be worse. At least we don't have 100-year mortgages like Japan, where your kids (and their kids) inherit the mortgage with the house.

Is that true?

https://youtu.be/iGbC5j4pG9w

This YouTube film suggests otherwise.