Mortgage size v salary

[winkie]

27 minutes ago, Dorkins said:

I've heard of people rewriting their CV to make their past roles sound lower level than they actually were because of this.

.......that is because in real life levels mean very little......someone on a high level may not be as good doing that job as a person on a lower level.....they just might be doing it for longer......processes change, systems change, technology changes......older people as they get older find it harder to change, and they get tired more easily....why mention a level?

[stuckmojo]

My logic is slightly different, as my mortgage is circa 12% of my net income, or 7% of gross income (though this is also family income as my wife is currently just starting a new career and not earning. No children yet but plans for that soon. 

At 30% of my net income at today's interest rates I could have a mega mortgage but would not sleep at night. I've probably reached the ceiling for my earning potential (at 40) up North and have no intention to move. 

Interestingly, same salary in London would not even get me a 1 bedroom flat in a shithole area with the same principles. 

BTW I am paying down capital on my mortgage as I have a slightly higher IR but no limits on overpayment. My aim is to be completely debt free within 5 years (I only have the mortgage to pay off). But wife wants a bigger house and all that. 

 

 

[winkie]

7 minutes ago, stuckmojo said:

My logic is slightly different, as my mortgage is circa 12% of my net income, or 7% of gross income (though this is also family income as my wife is currently just starting a new career and not earning. No children yet but plans for that soon. 

At 30% of my net income at today's interest rates I could have a mega mortgage but would not sleep at night. I've probably reached the ceiling for my earning potential (at 40) up North and have no intention to move. 

Interestingly, same salary in London would not even get me a 1 bedroom flat in a shithole area with the same principles. 

BTW I am paying down capital on my mortgage as I have a slightly higher IR but no limits on overpayment. My aim is to be completely debt free within 5 years (I only have the mortgage to pay off). But wife wants a bigger house and all that. 

 

Fine.....tell her if she wants it she can pay for it......takes two to tango.......will tie you both up for more years = less quality time, bigger houses = bigger costs...in more ways than one........but I respect everyone who wants to work for one, choices.

[stuckmojo]

11 minutes ago, winkie said:

Fine.....tell her if she wants it she can pay for it......takes two to tango.......will tie you both up for more years = less quality time, bigger houses = bigger costs...in more ways than one........but I respect everyone who wants to work for one, choices.

Oh I agree, and that's why she's starting her new career. 

[Dorkins]

1 hour ago, winkie said:

.......that is because in real life levels mean very little......someone on a high level may not be as good doing that job as a person on a lower level.....they just might be doing it for longer......processes change, systems change, technology changes......older people as they get older find it harder to change, and they get tired more easily....why mention a level?

Of course levels matter, the nature of the work is different at different levels. At the level below me my reports spend most of their time in the lab pipetting liquids around or analysing data. At my level I spend most of my time talking to people. Frankly I'd rather be in the lab but the pay is low (wouldn't matter so much if the cost of housing wasn't so ridiculous) and the risk of working for a bad team leader with duff scientific ideas is high.

[winkie]

37 minutes ago, Dorkins said:

Of course levels matter, the nature of the work is different at different levels. At the level below me my reports spend most of their time in the lab pipetting liquids around or analysing data. At my level I spend most of my time talking to people. Frankly I'd rather be in the lab but the pay is low (wouldn't matter so much if the cost of housing wasn't so ridiculous) and the risk of working for a bad team leader with duff scientific ideas is high.

....I agree if you can talk to people, if you can sell.......will never be without work, that is if you want it.

[Pop321]

On 11 April 2018 at 7:47 PM, Social Justice League said:

Cheers gents, I've just Googled that and you are 100% right.

I don't know where I got the idea that if you defaulted on your mortgage, the bank repossed the property and you got nothing back from the sale.

My experience is that a significant proportion of  repo's are mortgaged up to the hilt even if they have been going for 20 years. Equity release for cars, speed boats etc. 

I know you have clarified the point but normally if there is sizeable equity the borrower is encouraged to sell the house themselves and down size or rent ie avoid the repo. 

Those that allow repo with sizeable equity are often a symptom of some underlying non financial issues (in addition to the obvious financial issue) eg divorce where couple can't agree to sell, mental health issues and borrower can't cope,  denial dreamer.

Re the thread, In terms of 30% as all have said on here.....depends.?

[fandanman]

On 4/11/2018 at 10:35 AM, spyguy said:

UK earnings peak at ~31.

Sure, theres a few people who go on to eanr more + more but for Joe UK its 31.

More bull from the bullmeister himself

 

[winkie]

What happen to the mens income after the age of 70?......growth investments turned into income investments?

[jiltedjen]

1 hour ago, fandanman said:

More bull from the bullmeister himself

 

so a man early 30's you can generally assume your income will increase by about 20% over the next 10 years (and then peak), however your partners will reduce slightly. 

Wonder why earnings fall from 50+? surely they would be peak earning years?, i guess most cut down work or take easier roles, and do less overtime? 

i guess it comes down to what you think you are capable of in your work life. i think everyone kinda knows that already. 

[spyguy]

2 hours ago, fandanman said:

More bull from the bullmeister himself

 

Err, have you looked at your own chart?

The peaks slightly later these days but not by much - 5ish years. And the increase from 30 is pretty small.

[Mancunian284]

1 hour ago, jiltedjen said:

Wonder why earnings fall from 50+? surely they would be peak earning years?, i guess most cut down work or take easier roles, and do less overtime? 

 

People who have spent their whole working lives in manual jobs become less able?  People get made redundant and find it less easier than the young to find a new job? Ageism is supposed to be illegal but in practice is fairly common in recruitment.

[spyguy]

1 hour ago, jiltedjen said:

so a man early 30's you can generally assume your income will increase by about 20% over the next 10 years (and then peak), however your partners will reduce slightly. 

Wonder why earnings fall from 50+? surely they would be peak earning years?, i guess most cut down work or take easier roles, and do less overtime? 

i guess it comes down to what you think you are capable of in your work life. i think everyone kinda knows that already. 

In the says of mainly grunt work, by your 30s you were already faltering and less likley to go for those extra 10h/week OT.

These days id guess its more recundo catching up with people, and those people having limited transferable skills.

[spyguy]

1 minute ago, Mancunian284 said:

People who have spent their whole working lives in manual jobs become less able?  People get made redundant and find it less easier than the young to find a new job? Ageism is supposed to be illegal but in practice is fairly common in recruitment.

The agism in office or non heavy grunt work is a bit daft.

Sure, most old dogs cant learn new tricks but, providing the person is comptuer luterate, than im taking a punt with soneone 50+.

Like a lot of cr.p in the uk, this practise is a bad bit of hr from the usa. There, there are good reasons for avoiding older workers - the companies on the hook for healthcare, which is chunky for 50+ in the usa.

[Mancunian284]

12 minutes ago, spyguy said:

The agism in office or non heavy grunt work is a bit daft.

Sure, most old dogs cant learn new tricks but, providing the person is comptuer luterate, than im taking a punt with soneone 50+.

Like a lot of cr.p in the uk, this practise is a bad bit of hr from the usa. There, there are good reasons for avoiding older workers - the companies on the hook for healthcare, which is chunky for 50+ in the usa.

Even though the employer is not on the hook for healthcare here, it is sometimes assumed that those in their 50s and 60s are more likely to be off work with illnesses.

[spyguy]

4 minutes ago, Mancunian284 said:

Even though the employer is not on the hook for healthcare here, it is sometimes assumed that those in their 50s and 60s are more likely to be off work with illnesses.

Im my experience, no. Not compared to mid 20s.

[Mancunian284]

34 minutes ago, spyguy said:

Im my experience, no. Not compared to mid 20s.

I think employers assume that older people will be off sick more which they use as a justification for their ageist recruitment practices.  Even if this isn’t true.

In my experience, single mums take the most time off sick - during school holidays as they can’t afford / don’t want to pay for childcare.

[spyguy]

37 minutes ago, Mancunian284 said:

I think employers assume that older people will be off sick more which they use as a justification for their ageist recruitment practices.  Even if this isn’t true.

In my experience, single mums take the most time off sick - during school holidays as they can’t afford / don’t want to pay for childcare.

Ive had pleasant experience with older workers - 55+.

I had to set up a reasonably complex production line - hardware needed finshing, testing an packing. It was not straightfirward dumb stuff - lots of thought and checking.

I ended up employing 3 60+ blokes, all early retired, for 3day week. They were glad to get away from their partner and do stuff. It paid a lot more than beer money too - about 150/d.

[fandanman]

2 hours ago, spyguy said:

Err, have you looked at your own chart?

The peaks slightly later these days but not by much - 5ish years. And the increase from 30 is pretty small.

Errrrrr yes, you said " UK earnings peak at ~31 ", in fact they peak at 40 and stay peaked until early 50's with a near 20% increase.

Making it up as you go along as per usual. I know you try to come across as if you know what you are talking about but come on at least get the basic facts right.

[Habeas Domus]

@fandanman you are being trolled - this forum has an 'ignore user' function, which is well worth using IMO.