Mortgage advice



Frijj said:
Well I got quoted £900+ for a Taycan and that was salary sacrifice all inclusive so let’s say £1.8k for a McLaren
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I'd have said over £2k. A bloke near me had one, I live in a decent area but nothing exceptional so I assume he must really likes cars cos he has a triple garage (his house is much bigger than mine) full of the fuckers like a showroom. He's got rid of the MacLaren now and has a Ferrari instead. My main annoyance is that I've never seen him drive any of the cars from his garage, what a bloody waste.
AndrewP said:
I don't doubt that. But the 80s were a lot more than ten years ago.
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https://www.reddit.com/r/dataisbeautiful/comments/e1jrvw

That seems to suggest house prices have gone up waaaaaaaaaaay more than wages.
 
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DoctorMick said:
I'd have said over £2k. A bloke near me had one, I live in a decent area but nothing exceptional so I assume he must really likes cars cos he has a triple garage (his house is much bigger than mine) full of the fuckers like a showroom. He's got rid of the MacLaren now and has a Ferrari instead. My main annoyance is that I've never seen him drive any of the cars from his garage, what a bloody waste.

https://www.reddit.com/r/dataisbeautiful/comments/e1jrvw

That seems to suggest house prices have gone up waaaaaaaaaaay more than wages.
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Problem with looking at house prices nationally, is London has gone up a lot more & skews the figures.
 
Frijj said:
Someone did a “real world” interest rate and it was equivalent to what it was in the 80s because house prices and wages have changed so much. I’ll try and find it


Well I got quoted £900+ for a Taycan and that was salary sacrifice all inclusive so let’s say £1.8k for a McLaren

(I was not seriously considering the Taycan, as losing £900 a month would probably take me below NMW and also I’d like to be able to afford food and rent)
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Pretty much on the money. Depends how much you put down and balloon but 2k was the ball park.

Next door are forking out over 2k per month in their 2 cars.
 
DoctorMick said:
Fair point although the average salary in London has probably gone up more than the rest of the country as well I'd imagine.
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Probably also need to factor in that in the 70’s, 80’s and probably even 90’s you didn’t typically have two full time wages coming in. Much more common now for both adults to be working.

I’d imagine the majority of mortgage applications are joint applications so the value to wage gap whilst still massive is shortened and only really spikes after the 90’s.
 
Provider said:
I don't think he's in anyway the type of person the lad you were replying to was talking about. :lol:
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I actually think he is. He's a builder so his cars Inc insurance and tax must me about what 5k per month

Fair play to the lad if hes banging that out but then the music stops.....
 
TheWanderer said:
Bail out the 2.9% mortgage now and incur a 1% early redemption penalty and tie myself in to to a 4.4% mortgage for 5 years.

Or sit tight until April until my deal is up and search for deal then.

Given the possibility that interest rates are going to increase drastically, or so it’s being predicted what do the resident money experts suggest I should do?
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Go to Michael Craggs for advice! Sound bloke!
 
the dark one said:
Scary viewing that mind. I've often wondered how people, including Mam and Dad coped in times of rates of 16%.
This gives a new slant on it . Fascinating actually. More fucked today than we were in 1980.
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Yeah I was talking to my Mother in Law about this and she was paying 16% in the 80s, but the house price was equivalent to 1.5x her (single) salary (ex-council house).
If the price ratio were the same today hardly anyone would need a bloody mortgage at all.
We are where we are though :neutral:
 
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Amokachi said:
Yeah I was talking to my Mother in Law about this and she was paying 16% in the 80s, but the house price was equivalent to 1.5x her (single) salary (ex-council house).
If the price ratio were the same today hardly anyone would need a bloody mortgage at all.
We are where we are though :neutral:
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Aye, because everyone has 1.5 times their annual salary tucked away. 😉
 
Lenders will have to switch repayment mortgages to interest only, offer mortgage holidays or extend terms. They will only be allowed to reposess in very extreme circumstances. Mortgage holders may be better off in the longer term as high inflation erodes debt. In the short term they will be anxiety and stress for some but I am confident the doom and gloom merchants on BBC and the media will be proved wrong.
 
AndrewP said:
Aye, because everyone has 1.5 times their annual salary tucked away. 😉
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The deposit we've saved amounts to 85% of my salary so I'd just keep saving if they were that low!

Feels like a catch 22 now for first time buyers like us.
Buy now on a high rate (and it is high affordability wise - see graph above) before the rates go even higher.
Or wait, saving a bigger deposit but then paying even higher rates than now in a year or two anyway so savings are wiped out.
 
Amokachi said:
The deposit we've saved amounts to 85% of my salary so I'd just keep saving if they were that low!

Feels like a catch 22 now for first time buyers like us.
Buy now on a high rate (and it is high affordability wise - see graph above) before the rates go even higher.
Or wait, saving a bigger deposit but then paying even higher rates than now in a year or two anyway so savings are wiped out.
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I’d just buy when you’re ready. Over the long term of a mortgage, 25 year plus, you are going to get changes to rates and property prices both up and down. If it’s a long term home, affordable and not something you’re looking to sell on quickly then it will always beat renting over the same period imo. Trying to predict the market and when is best to buy is a gamble imo. Factor in stamp duty break they’ve just announced and that may cover the cost of the increased interest rate over the next few years so some people will possibly be no worse off.

We bought our first house about 6 year ago at just over 6% interest, 95% ltv. It was right for us as we were paying similar in rent and always planned to add value to the house to get into a lower ltv bracket for better rates.
 

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