Tuesday, October 3, 2006

First time buyers, nearly 30% of gross income on mortgage

Mortgages payments - are you better off than 10 years ago?

Andrew Hagger, Head of news and press at Moneyfacts.co.uk comments: "The net effect is that mortgage payments take a much bigger chunk of our income than they did in 1996. This statistic looks gloomy enough in its own right, but when you factor in additional increased expenses such as higher council tax and utility bills, it is no surprise that the UK is now faced with the current personal debt crisis".

Posted by converted lurker @ 11:41 AM (485 views)
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3 thoughts on “First time buyers, nearly 30% of gross income on mortgage

  • Fair point, but i think stupidity has to be a factor included in the reasons for the current personal debt crisis. Nobody forced them to get in that much debt.

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  • In saying that, there used to be a time when bank managers had a little more integrity and would not sanction loans they thought customers would struggle with. Sadly today it’s all about profit with no consideration about the fate of the individual “encouraged” into that situation. I remember when I started out as a fresh faced 21 year-old, and actually received sound advice from my bank manager who was “concerned I might struggle if I took on a mortgage at 3x my salary”. And to be honest, at that age you are minded to trust people that were once thought of as professionals. As we all know now, this is no longer the case and any advice relates only to the well-being of the banks shareholders.

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  • Banks have lending targets. Thast how they make their money (and staff make their bonuses.)

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