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Realistbear

F T B Offered 7 X Salary To Buy Derelict House

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http://www.expressandstar.com/articles/fea...ticle_87155.php

"I've just got approval on a mortgage for
seven times someone's income
. I was a bit surprised by that one myself," admitted one mortgage adviser.
"We now take into account your personal circumstances and financial commitments, not just the size of your pay cheque."
But surely borrowing seven times your income would leave you a shade overstretched, unless you had devised a way not to eat for the next 25 years. Actually, make that 50. By the time most people have paid off their mortgage these days, people are paying tributes at their funeral.
Despite all the drawbacks - financial and spending the next few years living in dilapidation - I still could not resist the overwhelmingly British desire to have and hold my own little castle.

Irrational exhuberance tempered by other fools willing to buy the British Dream of home ownership at any cost.

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http://www.expressandstar.com/articles/fea...ticle_87155.php

"I've just got approval on a mortgage for
seven times someone's income
. I was a bit surprised by that one myself," admitted one mortgage adviser.
By my calculations, a mortgage of seven times gross income, assuming 25 years and 5.5% apr, consumes around 70% of take home pay for an individual earning 20-35k.
So, if you were earning say 25k, you would have all of £400 per month to live on after paying your mortgage. Hmm, what does that leave after council tax, gas and electricity, telephone etc....?
Tesco value baked beans anyone?
Oh, and rates would only have to rise to 9.5% before all of your take home pay was going on the mortage! Have a play with my morgage calculator for more hypothetical fun (attached excel file)

mortgage.zip

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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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