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Saving For a Space Ship

Should A 3.5 X Income Mortgage Be Lowered In Tough Times ?

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The 3.5 x income guide is still seen as a sensible measure of affordability by many, but should it not be lowered in relation to how less secure your job has become? So for example, if you are 30 % more likely to lose your job, compared to 10-20 years ago, your mortgage should be reduced to x 2.33 your income.

Its occured to me that given the serious decline in manufacturing and great increase in insecure short term 'Mc Jobs' etc.

This has made the 3.5 times income guide for a mortgage, irrelevant and much too high, as it was based on much stronger economic times. One problem I see, is how to work out how less secure the average job is now, compared to then.

Maybe these sums are too simplistic, but if this should be considered, are houses not even more unaffordable than already thought ?

Edited by Saving For a Space Ship

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Quite possibly,

Now add factors for student debt - this will be approaching 1x income and pensions deficits even bigger, tax is rising too, so lop another bit off.

The only counter to this is multiple working families which for many will mean not having a family at all.

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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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