Cant get on property ladder

billy2shots

Mr_Singleton wrote: »

Doing some quick calculations and generalisations ie mortgage deposits/interest rates and I think somebody’s telling porkies.

You’d need to be paying at a rate of just under £25k/yr to clear the mortgage in 9 years. Currently top rate income Tax starts at £50,001. So earning £50,000.99p it might just be possible with a take home of £36,000ish plus the 12hrs. When you go back to the start of the mortgage higher rate Tax started at about £35,000 at which point your basic take home pay would barely service the mortgage let alone cover Council Tax, food, utilities etc.

It would also be interesting to find out how you got such a large mortgage with such a low income.... anyone fancy a porkie pie??

Great detective work....,

Now go back and check your figures.

£120k mortgage. I believe my average interest rate was 3.1 (worked it out at the time but don’t have that figure to hand now).

We were making regular monthly overpayments and lump sums where possible. The last few years the lump sums were far greater as wages were higher. On the whole it worked out at high £600 overpayment per month on average.

In the early days our mortgage was just over £500. We were paying £1000.

Later our mortgage was £300 odd and we were paying £1200.

In March we took an£215k mortgage. As it stands we owe £207k (nearly £208k) having overpaid by nearly £5k so far. I see no reason for this to slow down in the next few years. As my 2 children get older more money will be spent on them.

Mr_Singleton

Davy_Jones_II wrote: »

I’m only just becoming middle-aged, not old, but as with generations before there were just very few things that we could buy or do when starting out. Drinks out were rare, meat was a treat, a special treat was four cans of lager and a rented video, we did not take holidays, and so on.

Yawn, you sound like my grandmother.

You don’t give any clue as to when or where you purchased your house but I’m going to say based on your middle age it’s going to be somewhere around the the mid 90’s.

The average house price in London was 4.4 times income in 1995 by 2018 it was 13.6 times average wage and your SERIOUSLY telling young people that they can’t afford a house because they bought some Tesco chicken or had a pint or two of beer on Saturday night???

Mr_Singleton

billy2shots wrote: »

Now go back and check your figures.

£120k mortgage.

I have done quick calculation and I’m afraid your figures are still in porkie pie territory.

£120k 9 years @ 3.1% is minimum of £1400ish EVERY month. Your £500/month would suggest an initial 25 year mortgage and thus more interest besides don’t you think it’s a bit off to be lecturing young people when you fail to declare the small detail of your £100,000 deposit?

Cherry_Burton

As I’ve said in the past it’s hard not to see ‘shared’ ownership as a huge con! For the record you don’t own anything

Why do you say that?

If you can't afford the price to buy outright, what is the alternative? Rent for the rest of your life without an ounce of security, seeing ownership getting further and further out of sight? Shared Ownership is not ideal, and if you can buy 100% that is the best option. For the record, you are a leaseholder just the same as many people who own leasehold flats. They, don't "own" anything either. With Shared Ownership you have the option of buying 100% at a later date. It is an alternative and people have the choice. Many don't want to be at the mercy of private landlords all their lives.

billy2shots

Mr_Singleton wrote: »

I have done quick calculation and I’m afraid your figures are still in porkie pie territory.

£120k 9 years @ 3.1% is minimum of £1400ish EVERY month. Your £500/month would suggest an initial 25 year mortgage and thus more interest besides don’t you think it’s a bit off to be lecturing young people when you fail to declare the small detail of your £100,000 deposit?

You are correct that my mortgage was for an initial 25 years.

You are incorrect about everything else.
Mortgage taken in July 2009 and paid off Jan 2019. It was not a ‘minimum of £1400 every month’ more like max £1250.

Fail to declare ????? I think you need to learn to read better.


I’m gonna jump to a conclusion now and assume you are not a home owner and are one of those that believes owning a home is impossible.

If that’s correct then it’s perfectly fine to believe you can’t do it. I’m not going to change your mind or even try. However don’t assume it’s not possible for other people and fabricate things to fit your narrative.

lessonlearned

Cherry_Burton wrote: »

Why do you say that?

If you can't afford the price to buy outright, what is the alternative? Rent for the rest of your life without an ounce of security, seeing ownership getting further and further out of sight? Shared Ownership is not ideal, and if you can buy 100% that is the best option. For the record, you are a leaseholder just the same as many people who own leasehold flats. They, don't "own" anything either. With Shared Ownership you have the option of buying 100% at a later date. It is an alternative and people have the choice. Many don't want to be at the mercy of private landlords all their lives.

This......

At the very least shared ownership gives you security of tenure. And of course, the option to scale up the percentage owned as finances improve over time.

lessonlearned

Mr Singleton

Alas there is no short cut to easy homeownership. Despite what you may have read or been lead to believe, there never was. (I worked in the housing industry for over 30 years).

For most ordinary people it means sacrifices, skimping and saving - for as long as it takes.

My parents were in their 50s before they finally managed to buy a little house. That was back in the mid 70s. Prior to that they rented.

But ........they were determined ........and they eventually did it.

Like many first time buyers my first house was a wreck. It was all I could afford. It took me three years of blood, sweat and tears to lick it into shape and turn it into a home.

pattypan4

The moaners on here, the ones who complain that they cannot get a deposit together, who have time to sit by the computer. Why are you not working instead of computer watching? There are plenty of opportunities to make money, buy cheap and sell higher, work 2 jobs, one in the evening. I studied hard and so did my then ffiance while working full time, I worked every holiday and the money did not go on clothes or fancy holidays, nowt wrong with camping. Get real and stop expecting it to be handed to you on a plate. Life is what you make it. I had a fab time, all those parties in each others houses, never forgotten


Play with fancy monetory figures all you like, it will not make money fly into your pocket. Like I said, you need to be single-minded like some of the admirable `youngsters` above

Pollycat

Pixiepooh wrote: »

Hi guys. Hope someone can give me some help and advice.... my friend is trying to get a flat for the 1st time but no one will touch her unless she has a guarantor or a massive deposit! To which she cant get either. I cant be her guarantor as my financial situation wont allow it.... she has no one she can ask. Is there anything else she can try??? :money:

You should be thankful that that is the case.
Being a guarantor for something like a mortgage would be - imho - crazy.

RebeccaAnn

The whole young people today don't want to save and could easily afford a mortgage if they didn't have a mobile or buy expensive coffee rhetoric is absolute rubbish.

I am a millenial and most of my friends have been able to save and buy. But I do have a few friends who will never get there even though they work hard. One couple both work as carers and take on lots of overtime. They just don't earn enough. Whereas my grandfather worked in a factory (using this as an example as they are both low paid and quite manual) and my grandmother was a stay at home parent and yet they still were able to save up a deposit and buy a small house. Yes it was hard and they went without but it was possible. You couldn't earn 16k a year and buy now. And yes you can say my friends should get more training and get a better paid job but not everyone can do this. Not everyone can be a doctor or lawyer and we will always need carers and cleaners etc.

Wages have not increased in line with house prices. This is a fact. We bought a house 5years ago and it is now worth 15pc more yet neither me nor my husband have had a pay rise.

We have made sacrifices, we don't have cable or even any TV as not to pay for a license, no new clothes, cheap homemade food etc. The idea that a whole generation is out there buying daily Starbucks and eating out every night is ridiculous.