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Average Cost Of Mortgages.

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SkyNews: MORTGAGE COSTS RISE The average cost of servicing a mortgage rose slightly during August despite the interest rate cut. People in England and Wales spent an average of £512 on mortgage repayments during the month, £10 more than they spent in July, according to the Woolwich.

This is an average.

This includes people spanning the average 25 years of mortages.

People taking out mortages a decade ago..

Lower house prices and inflation would have knocked "older" loans down in cost..

Don't forget a lot of people are paying of mortages 20 years old for houses that cost £30,000..

what are the average costs of a mortages to FTB's in the last four years?

It must be massive.

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They'll have gone up because of fixed rates set up when interest rates were at their lowest ever coming to an end I imagine. Scottish mortgages aren't included, and will be less because of our lower priced properties. £512 is quoted as 18.4% of average disposable household income so obviously a lot of households have a very high income in England. I pay a higher proportion, but a much lower total

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SkyNews: MORTGAGE COSTS RISE The average cost of servicing a mortgage rose slightly during August despite the interest rate cut. People in England and Wales spent an average of £512 on mortgage repayments during the month, £10 more than they spent in July, according to the Woolwich.

This is an average.

This includes people spanning the average 25 years of mortages.

People taking out mortages a decade ago..

Lower house prices and inflation would have knocked "older" loans down in cost..

Don't forget a lot of people are paying of mortages 20 years old for houses that cost £30,000..

what are the average costs of a mortages to FTB's in the last four years?

It must be massive.

I've often wondered what the average mortgage of the twenty/thirty somethings was. A friend of ours disclosed they were taking on a 200k mortgage to buy their "dream house" earlier this year. Apparently this was a "normal" amount amongst other homeowners she knew ? :blink:

strewth !!

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I've often wondered what the average mortgage of the twenty/thirty somethings was. A friend of ours disclosed they were taking on a 200k mortgage to buy their "dream house" earlier this year. Apparently this was a "normal" amount  amongst other homeowners she knew ? :blink:

strewth !!

crikey - they must have the pay to go with it I suppose. I can barely afford a mortgage of under £70 thousand, but that is what I get for being single and working in the public sector. I couldn't sleep with that sort of debt though.

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Surprisingly, the mortgage cost to income ratio for FTB and OO buyers is very similar, with FTBs having a slight edge. Both are simply borrowing up to their acceptable (almost fixed) fraction of income; on other words the low post-1992 interest rates are converted into higher prices at nearly constant repayment/earning ratio. In fact, the stretching of this ratio at a peak is actually a good bubble indicator. [data from ODPM website]

Graph taken from elsewhere:

odpm_afford.gif

post-2887-1126181444_thumb.jpg

Edited by spline

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figures I have seen indicate that the average percentage of take home money taken up by mortage repayment is at 32%

thats higher then the FTB on that chart..

No wonder none of us knows where we stand....

Lies, damn lies and statistics...

Truth is its £580 ish for interest only against an £140,000 mortgage..

and average houseprices have been way above that for years..

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figures I have seen indicate that the average percentage of take home money taken up by mortage repayment is at 32%

thats higher then the FTB on that chart..

No wonder none of us knows where we stand....

Lies, damn lies and statistics...

Truth is its £580 ish for interest only against an £140,000 mortgage..

and average houseprices have been way above that for years..

Few people have 100% mortgages, so the average mortgage will never be the same as the average houseprice.

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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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