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GAL BEAR

Just Did A Rough Calculation To See How Much

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I went into one of those 'Mortgage calculators' on the internet.

It asked me for my Salary ----- £18,469

It asked me for partners Salary...... £27,000 (rough guess but near enough)

With this we could borrow the princely sum of £112,000.

(this would not even buy a one bed flat in my area - Essex)

The mortgage over 20 years (Mr Gal bear is a bit older than me) would have been around

£1000 a month !!!!

We would have no choice but to take out an interest only mortgage which would cost us

getting on for £500 per month, and pray someone thinks about us in their will !!!!

What the hell is keeping this housing market afloat ????

Bearing in mind that MR GAL BEAR is on bloody good money and I am on 'not bad' money.

How the hell are people younger than us with not such good earning powers doing it?

I ask again, what the hell is keeping the property market afloat ?

Edited by GAL BEAR

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I went into one of those 'Mortgage calculators' on the internet.

It asked me for my Salary ----- £18,469

It asked me for partners Salary...... £27,000 (rough guess but near enough)

With this we could borrow the princely sum of £112,000.

(this would not even buy a one bed flat in my area - Essex)

The mortgage over 20 years (Mr Gal bear is a bit older than me) would have been around

£1000 a month !!!!

We would have no choice but to take out an interest only mortgage which would cost us

getting on for £500 per month, and pray someone thinks about us in their will !!!!

What the hell is keeping this housing market afloat ????

Bearing in mind that MR GAL BEAR is on bloody good money and I am on 'not bad' money.

How the hell are people younger than us with not such good earning powers doing it.

I ask again, what the hell is keeping the property market afloat ?

Part of it must be those interest only mortgages (I think currently at 25% of all mortgages). Manyare taking up the offer you so wisely dismiss. I'm more and more convinced that it is these lending practices that underpin this crazy situation. What will bring them to an end? The drying up of liquidity that fuels them? Rising default rates? I don't know but it seems it won't be any attempt to bring back sensible lending regulation.

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what the hell is keeping the property market afloat ?

Big fonts?

Perhaps if you write down your salary in bigger letters a mortgage company will lend you more cash?

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Big fonts?

Perhaps if you write down your salary in bigger letters a mortgage company will lend you more cash?

:lol::lol::lol:

Yes, i might give it a go !!!!

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Fools & their Borrowed Money

:D

Not everyone borrows money, get yourself a good colour printer and back up cartridges, £50's are the easiest, takes a few hours to print the 10, 000 you need to buy a nice pad: the fed and the japs have been doing it for years ;)

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Guest wrongmove

Gal Bear, do you have kids or other dependents ?

If not, then you should be able to borrow more than this (I'm certainly not saying you should though).

£150k would be about 3.25x your household income. Add in a deposit, and you should have some choice of property.

On a 20 year repayment mortgage fixed at 5%, this would cost £990 a month.

Your income after tax would easily cover this, leaving some left over, plus a whole decent income to live on.

This won't be a popular suggestion, but many of our parents had to pay 3x or more of household income too. It was just that the household income consisted of just one wage.

Of course this is useless if you plan having kids anytime soon.

Edit: the mortgage is £990 for 20 year repayment, not £890 a month.

Edited by wrongmove

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GAL's combined income's in the same ballpark as ours. That's about all you can borrow from the big Banks like Barclays or NatWest.

Try it at http://www.ybs.co.uk and you can probably get that up to £165k or there abouts. Big sodding mortgage, though!

Direct Line would always offer shedloads more than anyone. We could get 165k out of them when we earned £18k and £13k a couple of years back.

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Bearing in mind that MR GAL BEAR is on bloody good money and I am on 'not bad' money.

How the hell are people younger than us with not such good earning powers doing it?

I ask again, what the hell is keeping the property market afloat ?

I dinnae ken!

Edited by shakerbaby

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On a joint salary of £40000 between you, you can get £155k (+8.2k Deposit)

over 30 years it works out @ 800PM on a fixed Nationwide 5/10 year mortgage.

Edited by ExeC

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Online calculators always give you the bare minimum - going through an IFA is better - if you want, and can afford, a bigger mortgage that is.

isn't that because the IFA's are, shall we say, a bit more "creative" on the application forms? :P

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isn't that because the IFA's are, shall we say, a bit more "creative" on the application forms? :P

I don't know - I didn't 'get creative' on my application form but IFAs have access to mortgages with better deals not available on the highstreet. I'm sure there is some 'creativity' going on but I didn't need to lie to get what I needed anyway.

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Of course this is useless if you plan having kids anytime soon.

You can dump them in a nursery at 6 months. Sorted. OK, the kids willl be f***ed for life but at least they''ll have a nice house.

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Guest wrongmove

I don't know - I didn't 'get creative' on my application form but IFAs have access to mortgages with better deals not available on the highstreet. I'm sure there is some 'creativity' going on but I didn't need to lie to get what I needed anyway.

The Nationwide seem to offer 4x joint income: nationwide.co.uk/mortgage/homebuyers/calcs.htm

I put in Gal Bears details from her post (£18.5k + £27k) with no other debt and it came up with

£184,750 !!

Nationwide do a 5 year fix at 4.69% and a 10 year fix at 4.79%

£150k at 4.69% on a 20 year repayment mortgage = £964 per month, or £586 IO. I am not suggesting anyone borrows IO, but this is the figure to compare with your rent.

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I went into one of those 'Mortgage calculators' on the internet.

It asked me for my Salary ----- £18,469

It asked me for partners Salary...... £27,000 (rough guess but near enough)

With this we could borrow the princely sum of £112,000.

(this would not even buy a one bed flat in my area - Essex)

The mortgage over 20 years (Mr Gal bear is a bit older than me) would have been around

£1000 a month !!!!

We would have no choice but to take out an interest only mortgage which would cost us

getting on for £500 per month, and pray someone thinks about us in their will !!!!

What the hell is keeping this housing market afloat ????

Bearing in mind that MR GAL BEAR is on bloody good money and I am on 'not bad' money.

How the hell are people younger than us with not such good earning powers doing it?

I ask again, what the hell is keeping the property market afloat ?

£112000 over 20 years @5% repayment mortgage would cost you £750 per month NOT £1000. For it to cost £1000 you would be borrowing at 9%. Perhaps people 'keeping the market afloat are smarter at numbers than you??

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Couple of points,

1. IFA's really aren't allowed any more to be very creative (unless you find someone who is not worthy of a prod with a bargepole) unlike EA's who are like modern day magicians, "look here is a driveway with multiple off road parking" - yeah, who owns two smart cars?

2. Its not just about income multiples, eg, you currently have a £50K mortgage and a £200K house, if you went looking for a mortgage for £150K (in total) the mortgage lenders would see that you are investing £150K of your own money into the purchase, which would reduce significantly the risk to the lender.

3. Under the age of 40 you would be unlikely to look at a £150K mortgage for a period of less than 25 years if the repayments leave you tight for money, better go 25 years and overpay when possible, why are some people quoting 20 years? Why not make it look really bad and quote 10 years.

I agree strongly with most of the principles on this site and like many on here do not see any reason for prices to hold up where they are, I agree GB has done a great disservice to our nation and that we are heading for a very rocky economic period. However I do wish posters would stop the creative accounting to make anecdotals and reports seem worse than they are. We dont need to spin, we just need to sit back and have patience.

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You can dump them in a nursery at 6 months. Sorted. OK, the kids willl be f***ed for life but at least they''ll have a nice house.

No they wont. £1K/ month fees for 2 kids makes nurseries hardly worth it. It is almost cheaper for one parent to stay at home unless you are both on very good salaries.

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Guest wrongmove

3. Under the age of 40 you would be unlikely to look at a £150K mortgage for a period of less than 25 years if the repayments leave you tight for money, better go 25 years and overpay when possible, why are some people quoting 20 years? Why not make it look really bad and quote 10 years.

I quoted 20 years because Gal Bear aid she wanted a 20 year mortgage. :blink:

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I ask again, what the hell is keeping the property market afloat ?

I think it's people on itnterest only mortgages, BTL'ers and those whose parents MEW to help out. Can't see it lasting.

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when i spoke to my friendly Halifax EA the other day, she did a mini-credit check on me and w/out any need to produce company accounts or similar, she guaranteed me a loan of £217k was based on a salary of £50k - repayments on this were £770/month for he first 2 years, rising to £820 after that over 20 years total

as she said, Halifax now base their loans on affordability - maybe i am just lucky in my job, but £770/month doesnt seem an awful lot?

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Part of it must be those interest only mortgages (I think currently at 25% of all mortgages). Manyare taking up the offer you so wisely dismiss. I'm more and more convinced that it is these lending practices that underpin this crazy situation. What will bring them to an end? The drying up of liquidity that fuels them? Rising default rates? I don't know but it seems it won't be any attempt to bring back sensible lending regulation.

The money lent in the form of mortgages DOES NOT EXIST UNTIL IT IS LENT...it is the lending that brings it into existence.

Do you really think the banks are going to be worried about losing money that they created anyway!?! This is why (in the absence of much needed legislation, not mentioning root_and_branch reform) they are so lax in lending. Imagine the following situation:

You are a dumb young FTB who wants to buy a house - you need to borrow £100k. I have the ability to create £100k and then lend it to you. You then spend 30 years paying me interest on the £100k, which is my profit - money I make from nothing. If at any point you default on the mortgage I get your house, a claim that I have obtained as a consequence of money that I invented.

If this seems unbelievably unfair and absurd...well, it is. But I am afraid it is also the way it really works.

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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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