Tuesday, Jun 12, 2007
First-time buyers' record burden
BBC: First-time buyers' record burden
The finances of first-time home buyers are being stretched to record levels by rising house prices.
Figures from the Council of Mortgage Lenders (CML) show that first timers are now borrowing an average of 3.33 times their incomes to buy a home.
Posted by david20040_0 @ 11:41 AM (145 views) Add Comment
3 Comments
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1. night said...
This really shows how many people are buying together. If the average first time buyer mortage is for £159,977 (reported some days ago), then with a 10% deposit, that means that the average FTB is on around £43,000 a year. I know there are massive flaws in that. Presumably, FTB's must have a bigger deposit and £43,000 is the combined wage? Still, those numbers don't quite seem to add up.
2. dohousescrashinthewoods said...
Night, yes, 3.33 seems remarkably low. Is that based on what they "say" they are earning in order te secure the mortgage?
If the average wage is ~25K then an average of 43K suggests people are overstating by ~18K.
Making an allowance for "multibuyers", perhaps it's 10-15K lies.
Sub-prime, sub-prime, sub-prime, sub-prime, sub-prime, sub-prime, s..
3. nearly30 said...
This has got to be utter rubbish!!
Like you said night and do - the 3.3 figure is derived from the fudged income figures to get a mortgage in the first place.
They must realise this - to say the average FTB has an income of around £43K is a joke - we are talking averages!!!
Look at the figures from National Statistics Online http://www.statistics.gov.uk/cci/nugget.asp?id=285
The Median pay is £25,324 for Men
The Median for the highest earners is (40-49 year olds) is £26,416 - and FTBs are a younger age group!!!! Duh!!!!
For London the figures are £29,744 for men
Interestingly though - if you want to see a conspiracy in it:
The occupations with the highest earnings in 2006 were ‘Health professionals', (median pay of full-time employees of £1,038 a week [£53,976]), followed by ‘Corporate managers’ (£688 [£35,776]) and ‘Science and technology professionals’ (£662 [£34,424]).
That's are BTL brigade I suggest!!!