Tuesday, May 27, 2008
Debt and more dept
Telegraph.co.uk: First-time buyers spend half of income on mortgage
According to data from Nationwide, the country’s largest building society, the average first time buyer is handing over 49 per cent of their post-tax salary on repaying their mortgages.
This is the highest level since 1990 – the depths of the last housing crash and twice the level of ten years ago.
“My worry is that people will not be able to borrow themselves out of trouble. Previously people could have re-mortgaged their homes or taken out more debt on their credit cards, but these avenues have been more or less closed thanks to the credit crisis and the faltering housing market.
“That is going to leave people with nowhere else to turn.”
Posted by housebear @ 08:53 PM (626 views) Add Comment
5 Comments
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1. housebear said...
Debt and more debt that should be!
2. icarus said...
Presumably that's 49% of what thet SAID their salary was.
3. icarus said...
sorry - "they"
4. Chris said...
they all deserve to loose their house's to people like me who had the brains to work out that I couldnt afford the repayments at time of purchase let alone when rates inevitably change/d 3/5 years on. Hopefully they will learn a hard lesson which they can use to better inform their own children.
5. landofconfusion said...
> This is the highest level since 1990 – the depths of the last housing crash
And this housing crash has only just begun.