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Mr. Piddle

£150K Mortgage In Perspective

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Once upon a time in a bygone era that no-one remembers, we were told if we wanted something we had to save for it.

So lets say the average mortgage in the UK is £150k, how long woud it take you to save that kind of money?

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10 and a half years at our current saving amount.

I was calculating this morning that I could save around £500 per month and that would take me 25 years. still a ruddy long time in either case

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£150K; with my bare hands, alot of blood, sweat and toil. A long time, because by the time you have saved the £150K pieces of paper, in ten years, one old £1 unit will be worth £0.1.

Imagine trying to walk up the escalator that is moving down against you.

Therefore one must put one's labour in savings vehicles that retain their value (and not necessarily increase in value). Passive income would be a bonus.

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£150K; with my bare hands, alot of blood, sweat and toil. A long time, because by the time you have saved the £150K pieces of paper, in ten years, one old £1 unit will be worth £0.1.

Imagine trying to walk up the escalator that is moving down against you.

Therefore one must put one's labour in savings vehicles that retain their value (and not necessarily increase in value). Passive income would be a bonus.

Are there any saving vehicles of this nature?

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I was calculating this morning that I could save around £500 per month and that would take me 25 years. still a ruddy long time in either case

Yeh that 10.5 years is me and the missus saving £600 a month each, which is best case scenario.

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These number really put it into perspective. £150k is a lot of money, and it takes some time to save it.

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Yeh that 10.5 years is me and the missus saving £600 a month each, which is best case scenario.

We paid off a £120k mortgage in 8 years (balance was £105k after 8 years then paid the rest off by offsetting savings)

Neither of us were higher rate taxpayers in that time, average household income of around £60k so that probably works out to about £600 a month each of savings.

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This thread seems relevant to my personal circumstances. Saved up a very substantial deposit while overseas. Came back in 08 and watched house prices tumble then stabilise. That, and this site, convinced me not to buy. So we keep saving...

I am into risk free savings (so nothing too shiny thank you). Here's the thing though. I'm gettting an unspectacular 3% in the bank. Given that the savings are for a house and they are nominally falling, I don't consider that I am losing out against RPI etc. However, there are a few bog standard terraced properties round me that I could buy with cash. The potential yield would likely be double the interest rate on my savings.

Everything in my heart and on this site says not to buy a place and rent it out. Doing the maths, my head's struggling to agree though...

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I am into risk free savings (so nothing too shiny thank you). Here's the thing though. I'm gettting an unspectacular 3% in the bank. Given that the savings are for a house and they are nominally falling, I don't consider that I am losing out against RPI etc. However, there are a few bog standard terraced properties round me that I could buy with cash. The potential yield would likely be double the interest rate on my savings.

Everything in my heart and on this site says not to buy a place and rent it out. Doing the maths, my head's struggling to agree though...

If it's not illegal or morally wrong, then why not?

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Once upon a time in a bygone era that no-one remembers, we were told if we wanted something we had to save for it.

So lets say the average mortgage in the UK is £150k, how long woud it take you to save that kind of money?

and how much does it cost to borrow it?

£262K over 25 years...at todays rate of 4.99%

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If it's not illegal or morally wrong, then why not?

What's holding me back is the thought that anything I buy could go down in value each month by the amount of rent I earn from it. They're all places on Chav Street too, so I'd expect a lot of maintenance etc and I barely know one end a screwdriver from the other. Throw in lost interest on my savings, insurance and empty periods too...

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If it's not illegal or morally wrong, then why not?

Because you would probably only net about 3% after tax and expenses anyway so unless your expecting capital gains is not worth it.

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Would it be better to save 150k over a 10 to 15 year period rather than borrow 150k and payback 200k over a 25+ year period?

10 year is a lot of time in anyone's life.

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6 years with no deposit. 3 years with. If i include the OT then we could probably reach it in just over a year of continued saving.

Not sure what the rush is to buy though. My brother is only 24 and is trying to buy a slavebox down south on a 25 year mortgage that he can barely afford with interest rates at a historic 300 year low. Joint income of course and working in a job he hates. Seems very strange to me. Property is a depreciating asset in real terms and will continue to be so for many years.

I have totally changed my mind on this - it used to make me so angry - the boomers had it so easy comparatively. I really don't see the attraction of taking on a huge debt and paying it back plus a huge amount of interest to the bank over half your productive life. Surely it is much better to save and rent more modestly for a few years and then buy outright instead - if ever.

This isn't even discussing the massive potential of capital growth of your funds as you go. I like the german approach in this respect.

Sod the banks!

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This thread seems relevant to my personal circumstances. Saved up a very substantial deposit while overseas. Came back in 08 and watched house prices tumble then stabilise. That, and this site, convinced me not to buy. So we keep saving...

I am into risk free savings (so nothing too shiny thank you). Here's the thing though. I'm gettting an unspectacular 3% in the bank. Given that the savings are for a house and they are nominally falling, I don't consider that I am losing out against RPI etc. However, there are a few bog standard terraced properties round me that I could buy with cash. The potential yield would likely be double the interest rate on my savings.

Everything in my heart and on this site says not to buy a place and rent it out. Doing the maths, my head's struggling to agree though...

Believing everything on this site has cost some people a lot of money.

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Also don't forget if you're talking paying back a mortgage, that 150k as a general rule of thumb becomes 300k of repayments.

Around 2007 a work colleague of mine told me about someone he knew who had recently sold their property. They sold due to a relationship breakdown, and her share of the profit from the property once the mortgage had been paid was around 100k. He then went on to say that it 'wasn't a lot of money' and that he expected her to have got more. He was earning between 25 to 30k at the time and had just 'bought' a new build 2 bed flat with a 95% ltv. I asked him how long it would take him to save up 100k. He laughed, and said it would never be possible for him to save anything due to his mortgage payments.

This is the kind of thinking we are up against. He was educated to degree level.

In economics.

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Once upon a time in a bygone era that no-one remembers, we were told if we wanted something we had to save for it.

So lets say the average mortgage in the UK is £150k, how long woud it take you to save that kind of money?

After Tax & N.I., about 20 months. Now, does that mean I would then waste it on an over-priced property? No, it doesn't. :)

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Ask me when I have some money, but prior to buying a house a few months back, it would have taken me about 6-7 years, but I couldn't live with my parents forever!

this reason is pushing me toward buying lol, viewed a fantastic 3 bed victorian detached, nice garden lots of potential 149,650

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  • 335 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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