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paulm

Mortgage Payments As A % Of Life Income

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Does anyone have figures for what the average first time buyer would have spent as a % of their life time income on mortgage repayments?

It would be interesting to see what % of lifetime income a ftb would spend on mortgage costs if they bought in:

1975

1985

1995

2005

Of course we can only estimate incomes after 2005, but if we continue to have an era of low overall inflation then we could assume that wage inflation will be on average perhaps 3.5%.

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Does anyone have figures for what the average first time buyer would have spent as a % of their life time income on mortgage repayments?

It would be interesting to see what % of lifetime income a ftb would spend on mortgage costs if they bought in:

1975

1985

1995

2005

Of course we can only estimate incomes after 2005, but if we continue to have an era of low overall inflation then we could assume that wage inflation will be on average perhaps 3.5%.

Well, I'm not allowed to swear now so I will have to content myself with quoting the wallies at the Halifax who said the 0.25% in IRs would have the effect of making the average mortgage for a FTB 19% of his gross income as opposed to 20%.

A move of 0.25% on what size mortgage? Isn't the average mortgage £85k? How much are FTBs having to borrow? If a FTB was on the average wage of about 25k - that drop would mean repayments going from 5k (20% of 25k) to £4750. What does that buy you as a mortgage these days - £400 a month - an 80k mortgage.

That won't buy you a garden shed where I live. Those tossing type people at the Halifax, and all the other VIs, have a marvellous way of spinning numbers to make it look like everything in the garden is rosy.

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Well, I'm not allowed to swear now so I will have to content myself with quoting the wallies at the Halifax who said the 0.25% in IRs would have the effect of making the average mortgage for a FTB 19% of his gross income as opposed to 20%.

A move of 0.25% on what size mortgage? Isn't the average mortgage £85k? How much are FTBs having to borrow? If a FTB was on the average wage of about 25k - that drop would mean repayments going from 5k (20% of 25k) to £4750. What does that buy you as a mortgage these days - £400 a month - an 80k mortgage.

That won't buy you a garden shed where I live. Those tossing type people at the Halifax, and all the other VIs, have a marvellous way of spinning numbers to make it look like everything in the garden is rosy.

thankfully I think that fewer and fewer people are actually paying them much heed though. Anyone involved at the sharp end of buying or selling knows the real score. They might hook in a few mugs, but quite frankly I don't think those types could ever be helped.

Even those who believe the claptrap (and there are many, clearly the BBC are included!) are priced out, so HFX and their ilk are destined to p!ss into the wind

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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