Moving in together

Upthere said:
Haway mate you can’t talk all about sacrifice with them winning a large amount of the deposit at the casino. That happens these days it’d be a red flag on the mortgage for gambling if it was online.

Obviously I don’t know the situation but sounded like they done alright for themselves if they managed to go on 3 holidays a year. Know plenty of people my age that have made a sacrifice but like I said my initial point was about renting and being able to save for a house it’s difficult, and you don’t want to me paying someone else mortgage for them. People always think the generations after them aren’t as hard working as them with sacrifices etc
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You can rent and still save a decent wedge in the North East like, assuming you're both on more than minimum wage. Rental values are very low.

I know you can save more by staying at home but I can't think of much worse in your 20s. Each to their own of course.
 


James said:
You can rent and still save a decent wedge in the North East like, assuming you're both on more than minimum wage. Rental values are very low.

I know you can save more by staying at home but I can't think of much worse in your 20s. Each to their own of course.
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I agree with what you say but isn’t ideal you’d rather save that wedge towards a house, it’s just not ideal and the cost of living is only going up

Not long been back home after being away and it’s a nightmare, know some people early 30’s don’t know how they do but everyone’s different
 
Upthere said:
House prices almost triple over past two decades - while average salary is yet to double

@42
@Gillythedilf Just came up on Twitter
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I'm not denying that (much driven by london)

However when mortgage interest rates drop from 15% to under 2% the its inevitable that prices rise. It doesn't make them less affordable however.

Here's another nice graph on FTB houses to salary ratios

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In last 20 years it's gone from 3x to 5x nationally, but up here it's only from 2.75× to 3x. London 4.5x to 9x
 
Upthere said:
House prices almost triple over past two decades - while average salary is yet to double

@42
@Gillythedilf Just came up on Twitter
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House prices have not tripled in most areas of the north east since 2000.

In certain areas houses are still selling for less than they did pre the crash in 2008.

For example, four bed terrace house in Murton that was probably a new build in 2006 sold for £175k. Sold this year for £157k.

I think most of the houses on the new build estate near Dalton park are all selling for a lot less than what they did when they were built.
 
girojim said:
It's not just the earning to house price ratio its the difficulty in getting a mortgage. Lenders are so much stricter now than they were years ago. You might have similar income to house price ratio than there was twenty/thirty year ago but doesn't mean you will get a mortgage
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House prices are much higher than average earnings these days, compared to the 90s.

The reason that graph suggests otherwise is because interest rates are low - meaning mortgage payments are low.

If they allow higher lending ratios then prices will shoot up and a small increase in interest rates would lead to carnage.
 
Seaham Towny said:
Just curious as to what the SMB thinks of this.

I moved in with my wife around 10 weeks after starting to see each other. I have mates who lived with their parents til getting a house together and split up after a few months… some of these were 5 year relationships.

I suppose my question is, can you really know someone before living with them? And is it worth doing before embarking on something as serious as a mortgage together?
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The answer to your question is no. you can't every truly know someone until you live with them however as long as you go into it with your eyes open and accept that there will be hundreds of little difference, some that irk and some that amuse then you will be fine. My mantra has always been "challenge or accept" when it comes to the things that irritate me about the missus
 
Upthere said:
I do agree with you a lot on what you say the cars on £500 a finance that is essentially £6000 a year towards a house but that’s what happens when finance in cars is easier to get. But I don’t think as many young people want to actually buy a house at the minute they’d rather enjoy the good life for now
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Which is fine but at the same time they can’t Moan they can’t afford a house when they can really if they got their priorities right.
 
42 said:
I agree it's difficult to rent & save. I'm not suggesting living with parents until late 20's or 30's either, but if you don't move away for work & live with parents until maybe 23ish to save up it can make a massive difference to what you can afford (it's what I did anyway)
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That is where 100% sensible mortgages were good. We had been thinking of buying and I was only waiting for a friend in a long queue at the bank when a mortgage salesperson approached me. We did a very quick calculation and found I could afford quite a bit of house. The max they said sounded too much, so we went cheaper. Probably too cheap to be honest.

Within months, interest rates fell, I got a payrise and we found payments were less than the rent we had been paying. With my pay rise too, we ended up making over payments within a year of buying.

The problem was too banks got greedy and offered really high value 100% mortgages to a lot of people. They wanted the show home, turned their noses up at small houses, flats or ex-council houses. They had the house but no disposable income.

If banks had offered sensible 100% and said to people we will match your monthly payments to your established rent, many people could have transitioned into home ownership. The way they did it blew the bottom out the market and now it is really hard for people. The more they save the further house prices get away from them.
 

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