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munimula

Bba Report - Average Mortgage Up 16% On Last Year!

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Mortgage approvals have also shifted up a gear following a weak period in July, with net mortgage lending rising from £3.7 billion to £4.3 billion in August, compared to £4.6 billion in August 2004. The average sum borrowed was £130,500, down £2,200 on the previous month but up over £18,000 on the same period of 2004.

The average sum borrowed up £18,000 on the same period of 2004.

That's a 16% increase at a time when average house prices have at best stayed the same, more likely gone down.

How do you explain this? Is this a larger percentage of FTBs having to borrow more to get on the ladder?

If this is the case it represents a lot of people taking on a lot of debt and probably all at the wrong time.

Isn't this extremely worrying?

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The average sum borrowed up £18,000 on the same period of 2004.

That's a 16% increase at a time when average house prices have at best stayed the same, more likely gone down.

How do you explain this? Is this a larger percentage of FTBs having to borrow more to get on the ladder?

If this is the case it represents a lot of people taking on a lot of debt and probably all at the wrong time.

Isn't this extremely worrying?

Simple, people are runing out of real hard savings. End game approaching.

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Simple, people are runing out of real hard savings. End game approaching.

Good point. Whereas upto mid 2004 people were using MEWed cash etc as deposits, this increase could be down due to the fact that this money ins't available now and therefore those buying today are having to borrow more. That and the fact it takes years to save the kind of deposits required now. It's a big increase though and £130K as an average mortgage is huge.

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when your talking pie int he sky figures of £200k, £100k, £375k like its paper money, its no suprise peoples actual REAL MONEY reserves got wiped out.

realisticaly most savers who work have (or used to have) about 3k savings. a lot live on credit and live month to month. how far does that go when even the 5% deposit on a the cheapest house in town is 5k. why is there some assumption that new ftbs are richer than the current sellers. they have the same jobs.

people have got silly. the figures just dont add up and everyone knows it

- even the sellers know it.

the games up.

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More chains are completing without a FTBer at the bottom. This will result in some pretty stunning mortgages at the bottom of some chains.

Plus of course, if people MEW, then their borrowing requirements will always rise faster than house prices.

So.. we are meant to borrow 3.5 times our salary..

on average

The average salary should therefor be £130,000 divided by 3.5

hmnnn..

£37,142.

interesting..

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So.. we are meant to borrow 3.5 times our salary..

on average

The average salary should therefor be £130,000 divided by 3.5

hmnnn..

£37,142.

interesting..

hmmm...according to one source, the average gross pay for manchester city council residents is 380 quid p/w....guess that would make average house prices in the 70k range...erm...oh...thats way off....

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  • 302 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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