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"1 In 6 Struggling With Mortgage Repayments"

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http://www.independent.co.uk/money/mortgages/16-find-mortgage-payments-harder-2227828.html

One in six homeowners are finding it harder to keep up with their monthly repayments, despite mortgage affordability reaching its best level for 10 years, research suggested today.

The average homeowner spent just 15.4% of their take-home pay on mortgage repayments in December, the lowest level since Barclays first started carrying out the analysis in 2002.

The group, which analysed transactions from 1.3 million current accounts, said the high levels of affordability had been caused by the record low level of the Bank of England base rate, as well as pay rises people had received since interest rates first fell.

The improvement in affordability comes despite the fact that house prices have risen by 68% during the past 10 years, while average salaries have increased by only 37%.

Unsurprisingly, given the current low level of interest rates, 13% of homeowners said they could easily afford their current mortgage repayments and were not worried about interest rate rises, while 39% said they were comfortable and could afford some increase in repayments.

A further 28% of people described themselves as being stretched, although they said they still had enough disposable income to help them cope with a rate hike.

But 16% admitted that their mortgage was now less affordable than it had been a year ago, 36% of whom said this was because their salary was now lower, while 29% said their outgoings had increased.

Andy Gray, head of mortgages at Barclays, said: "It stands to reason that with interest rates at an historic low, mortgage affordability is at its best in a decade, but it is crucial that homeowners are not complacent.

"When asked specifically about coping with rising interest rates, it was great to hear that 71% say they either already have a plan in place to manage increased monthly mortgage repayments, or that they will be unaffected as they are on fixed rates.

"But homeowners who are not already thinking about their mortgage certainly need to be, to ensure they have a contingency plan when interest rates start to increase."

:: YouGov questioned 1,027 people between January 28 and February 1.

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They maybe struggling but the are still surviving and keeping hold of their homes - so far at least.

The Savers are struggling too, struggling to get a decent return.

It's almost like some greedy git is sitting in the middle creaming off the huge spread - wonder who that may be?

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You have to love it when you read the headlines in the order of 'Banks are not lending enough money to first time buyers' followed by '2 million people in the UK would struggle with their mortgages if interest rates hit 2%.'

Jesus wept.

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They maybe struggling but the are still surviving and keeping hold of their homes - so far at least.

The Savers are struggling too, struggling to get a decent return.

It's almost like some greedy git is sitting in the middle creaming off the huge spread - wonder who that may be?

The 'Wealth Creators'. And don't say anything nasty about them, or they'll be forced to cream off more to make up for the upset.

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You have to love it when you read the headlines in the order of 'Banks are not lending enough money to first time buyers' followed by '2 million people in the UK would struggle with their mortgages if interest rates hit 2%.'

Jesus wept.

It's SICK isn't it!?! :rolleyes::rolleyes::rolleyes:

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Jesus wept.

but the fluffy wuffy socialists know better than jesus because they have moral compasses, jesus can f*ck off he doesn't have a sociology degree

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They maybe struggling but the are still surviving and keeping hold of their homes - so far at least.

The Savers are struggling too, struggling to get a decent return.

It's almost like some greedy git is sitting in the middle creaming off the huge spread - wonder who that may be?

Couldn't be the bankers they are an efficient part of the capitalist cog.

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They maybe struggling but the are still surviving and keeping hold of their homes - so far at least.

The Savers are struggling too, struggling to get a decent return.

It's almost like some greedy git is sitting in the middle creaming off the huge spread - wonder who that may be?

We've all been had!

Is there a solution, because I can't see one? :huh:

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You have to love it when you read the headlines in the order of 'Banks are not lending enough money to first time buyers' followed by '2 million people in the UK would struggle with their mortgages if interest rates hit 2%.'

Jesus wept.

Indeed. It's pretty shocking that people are struggling at the moment.

Perhaps it's the refusal to give up sky tv, eating out and buying clothes?

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Indeed. It's pretty shocking that people are struggling at the moment.

Perhaps it's the refusal to give up sky tv, eating out and buying clothes?

More like rising travel costs, food costs and utility bills.

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More like rising travel costs, food costs and utility bills.

I think it's more likely a combo.

People don't want to do without.

I am still shocked sometimes by how people manage to spend every penny they earn even when they earn shed loads. It's like it's a race to the overdraft every month.

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"The average homeowner spent just 15.4% of their take-home pay on mortgage repayments in December, the lowest level since Barclays first started carrying out the analysis in 2002."

can this be true.?...thats £277 for the average earner ( £1800)

At 3.5%, 25 years, repayment, thats a rough £55,000 mortgage...not sure what you could have bought with that in the last 11 years.

yet, the average approval is around £140,000.

so a current mortgage homebuyer average would be 3 times that.....and Im not sure about 3.5% for current borrowers....

As usual, all this talk of stats from the banksters fails to show the current picture when they mix in the figure 15 or 20 year old mortgages.

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"The average homeowner spent just 15.4% of their take-home pay on mortgage repayments in December, the lowest level since Barclays first started carrying out the analysis in 2002."

can this be true.?...thats £277 for the average earner ( £1800)

At 3.5%, 25 years, repayment, thats a rough £55,000 mortgage...not sure what you could have bought with that in the last 11 years.

yet, the average approval is around £140,000.

so a current mortgage homebuyer average would be 3 times that.....and Im not sure about 3.5% for current borrowers....

As usual, all this talk of stats from the banksters fails to show the current picture when they mix in the figure 15 or 20 year old mortgages.

I don't think this is too off the mark, but it shows how many are on IO, and how many are closer to the end of their mortgages, taken out a long time ago and eroded by wage inflation. If it were adjusted to show only those who bought in the last 10 years then it would be closer to 30-40%, I reckon.

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  • 276 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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