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Mikhail Liebenstein

And The Average Salary Of A Help To Buy Home Buyer Is...........

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went into a new development in west mids to have a look around and was offered help to buy. I was surprised to find out you are eligible if you are trading up. Prices of these houses were 300-400k which is a little out of our price range. Low interest rates have alot to ask for, a 400k mortgage at 2% IO is £668 per month, (£1,700 a month repayment). In practice for many people the thing that stops them trading up from there 100k house getting a 400k mortgage for a £450k house and paying out 668 quid a month IO is not having saved up 40k. For other people the thing that stops them from doing this is the fear interest rates will rise and they arent paying it back!

Edited by AteMoose

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Haha, what percentile is that? FFS, when people earning in the top 10% of the population need "help" to buy a ******ing house you know the system is ******ed.

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I recently saw a 1-bedroom flat in Fulham advertised for £575k. With Lloyds new 4x salary rule our high-flying 80k executive will only need to ask their parents for a cool quarter of a mil to get on that first rung.

Edited by Orsino

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Haha, what percentile is that? FFS, when people earning in the top 10% of the population need "help" to buy a ******ing house you know the system is ******ed.

That's what happens when you deprive people the chance to build their own homes and relax lending standards at the same time.

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I went into an EA office today - first time in months. I was surprised to hear them still valuing stuff at 575 to 650 that was bought just 2 years ago for 400 to 450ish.

I asked whether they were aware of the new mortgage limits - nope. When I told them they said that people wanting to buy the above could pay half cash and get the other half on a mortgage.

triple-facepalm-picard-812.jpg

Edited by The Masked Tulip

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Haha, what percentile is that? FFS, when people earning in the top 10% of the population need "help" to buy a ******ing house you know the system is ******ed.

£80k is 98th percentile. £50k is 91st percentile.

In other words, if you're in the top 2%, you can just afford to buy in London with taxpayer help!

Edited by ChumpusRex

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The vox pop that nearly made me kill myself this afternoon was BBC talk of first time buyer help to buyers morph into a woman who gleefully admitted that she made a healthy profit selling a 3 bed semi but still needed a help to buy equity loan to purchase a 4 bed new build as her TEENAGE children needed more space. She couldn't afford the mortgage otherwise...

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Here's a Grimm's tale of subsidised mortgage madness - didn't get replies first time round, so here's a bump ...

Posted 13 February 2014 - 05:45 PM

'yadayada', on 12 Feb 2014 - 6:21 PM, said:snapback.png

....pay far too much for houses they can't afford.


When we were selling ours last year we had four people making offers, all co-ownership and they ended up well over asking price bidding against each other on something they couldn't afford. Says it all really.

And should add that the people that bought it ended up spending 18k over their initial offer actually starting off not needing co-ownership, they then had to go co-ownership to keep up with the rest of the bidders, minus co-ownership they would be in a lot less debt.

100 yay smile.gif

Edited by Sure thing!, 13 February 2014 - 05:47 PM.

http://www.housepric...c=68834&page=46

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£80k is 98th percentile. £50k is 91st percentile.

In other words, if you're in the top 2%, you can just afford to buy in London with taxpayer help!

Stunned. Lost for words.

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My initial thought exactly. The article indicates it includes joint incomes.

Still high...but not as high as if it were single incomes.

Okay, well £80k joint gross will be in the top half of households by income even in London, but it's definitely not in the top 2%. Maybe somewhere around the top 35% mark.

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Here's the breakdown for London boroughs (I've ditched Brent and Camden due to incomplete data).

Nice of Mr Cameron to help struggling hardworking families buy 500K homes in Kensington & Chelsea and Westminster.

HTBQ12014_London.gif

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Okay, well £80k joint gross will be in the top half of households by income even in London, but it's definitely not in the top 2%. Maybe somewhere around the top 35% mark.

Good point.

However, 80th percentile nationally of household gross income is about £75k. Unfortunately, gross household income is not a statistic that is collected or calculated in detail (an artefact of the fact that HMRC calculate tax on an individual basis).

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So Cameron.When id worked for 18 years in a factory and lost my job i had to suffer the horror of the Jobcentre where i saw people hounded almost to suicide for their £71 a week.

Yet here i am paying tax from my small business to help people buy half a mill houses in Westminster?.

No money to keep the REMPLOY factories open for disabled people who wanted to work for minimum wage,but plenty for rich people to buy overpriced houses.

This lot are as destructive as the last Labour government.Incredible.

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So Cameron.When id worked for 18 years in a factory and lost my job i had to suffer the horror of the Jobcentre where i saw people hounded almost to suicide for their £71 a week.

Yet here i am paying tax from my small business to help people buy half a mill houses in Westminster?.

No money to keep the REMPLOY factories open for disabled people who wanted to work for minimum wage,but plenty for rich people to buy overpriced houses.

This lot are as destructive as the last Labour government.Incredible.

+1

Cameron is simply on immoral *******, amongst many in our political class who are simply playing us in their game of being in power.

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Good point.

However, 80th percentile nationally of household gross income is about £75k. Unfortunately, gross household income is not a statistic that is collected or calculated in detail (an artefact of the fact that HMRC calculate tax on an individual basis).

HMRC have put out some info on gross household income (though they clearly prefer gross disposable household income) but it's pretty clunkily deconstructed:

income-figures-treasury-009.jpg

http://socialwelfare.bl.uk/subject-areas/government-issues/social-policy/%5BTreasury%5D/impact14.aspx

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