House selling prices

[Friend or faux]

Dunners wrote: ↑Wed Sep 27, 2023 11:31 am
I reckon the youth of today should be made to re-enact the D-day landings, under live fire, before they can qualify for any mortgage product.

That'll teach 'em.

At last some sensible messaging on this Board. This could replace The Duke of Edinburgh Award Scheme.

[Dunners]

Here comes the crunch: www.theguardian.com/money/2023/sep/28/m ... sions-kpmg

"UK mortgage payers making big changes to meet higher payments, survey finds
Britons are raiding savings or cutting pension contributions, KPMG study finds"

On average 100,000 households a month are coming off historically low fixed-interest mortgage deals, and being hit with much higher fixed rates (if they are lucky) or going onto standard variables. And for most of those households, their mortgage repayments will jump to a level that's equivilent to 27% of their income.

But this figure is an average. In this coming December and January, it'll be 360,000 households. Merry Christmas.



(Also, for those paying attention, this is one of the reasons why the Conservatives are going to double-down on "culture war" tactics in the run up to the next election)

[Give it to Jabo]

Other side of the coin. I have started a job in a college and the topic of D Day came up. Precious few of the learners had a clue about this event. I thought about all those people who sacrificed their lives etc...

Interesting. What subject do you teach?

English - to Functional Skills and GCSE Levels. The learners are enrolled on vocational courses but have to study Maths/English. Almost all of them are "good sorts".

[Dunners]

Finally, some common sense. The Housing Minister has confirmed at the Tory conference that Help to Buy is dead.

“If we incentivise through Help to Buy, First Homes, or any of these schemes, that’s great for those people, but it inflates the prices. Demand has to be balanced with the supply side.”

We're already beginning to see the financial destitution this ridiculous policy is having on households who purchased using HTB. It would be up there with the PPI scandal if it were not so heavily caveated through conveyancers.

[Long slender neck]

Mortgage payments 27% of income- is that meant to be a high percentage?

[Daily Express bot]

Mortgage payments 27% of income- is that meant to be a high percentage?

I remember the 80’s when I was paying over 50% of my wages on my mortgage as interest rates were 15%.

[OyinbO]

Mortgage payments 27% of income- is that meant to be a high percentage?

I remember the 80’s when I was paying over 50% of my wages on my mortgage as interest rates were 15%.

For how long?

Wage inflation was much higher then too.

[Daily Express bot]

It went down to about 12% after about year or so as far as I can recall . Rates in the 70’s and early 80’s were always around 7% or more. Banks only offer fixed rates when they fancy the rates will go down. It was touch and go for ages when rates were 15%, my wages were not increasing and I had to sell my nice car to make ends meet.

[OyinbO]

The structure of the mortgage market has changed a great deal since the 80s. Fixed rates were very rare then, almost everyone was on the SVR, so there was no lag between base rate changes and the effect on mortgagors.

[o-no]

It went down to about 12% after about year or so as far as I can recall . Rates in the 70’s and early 80’s were always around 7% or more. Banks only offer fixed rates when they fancy the rates will go down. It was touch and go for ages when rates were 15%, my wages were not increasing and I had to sell my nice car to make ends meet.

Princess Vanden Plas?

[Daily Express bot]

It went down to about 12% after about year or so as far as I can recall . Rates in the 70’s and early 80’s were always around 7% or more. Banks only offer fixed rates when they fancy the rates will go down. It was touch and go for ages when rates were 15%, my wages were not increasing and I had to sell my nice car to make ends meet.

Princess Vanden Plas?

MGB Roadster, paid the loan for 4 or 5 months!

[Daily Express bot]

Here comes the crunch: www.theguardian.com/money/2023/sep/28/m ... sions-kpmg

"UK mortgage payers making big changes to meet higher payments, survey finds
Britons are raiding savings or cutting pension contributions, KPMG study finds"

On average 100,000 households a month are coming off historically low fixed-interest mortgage deals, and being hit with much higher fixed rates (if they are lucky) or going onto standard variables. And for most of those households, their mortgage repayments will jump to a level that's equivilent to 27% of their income.

But this figure is an average. In this coming December and January, it'll be 360,000 households. Merry Christmas.



(Also, for those paying attention, this is one of the reasons why the Conservatives are going to double-down on "culture war" tactics in the run up to the next election)

In the real World, most prudent borrowers made overpayments or put money aside with the historically low interest rates, ‘saving for a rainy day’. This way you are ahead of your mortgage .

[Dunners]

Good on the Scotch.

[Adz]

Mortgage payments 27% of income- is that meant to be a high percentage?

I remember the 80’s when I was paying over 50% of my wages on my mortgage as interest rates were 15%.

Pah, we're currently paying 50% of our COMBINED wage on our mortgage. You cant look at interest rates in isolation, they need to be compared in conjunction with house prices and wages. When you do that, the effect of current interest rates are worse than the 80s.

[Orient Punxx]

Good summary imo…..

[Tuffers#2]

It went down to about 12% after about year or so as far as I can recall . Rates in the 70’s and early 80’s were always around 7% or more. Banks only offer fixed rates when they fancy the rates will go down. It was touch and go for ages when rates were 15%, my wages were not increasing and I had to sell my nice car to make ends meet.

Princess Vanden Plas?

More likely 300cc bubble car sold for £100 in 1982 to cover the mortgage.

[Dunners]

In 1980 the average family spent just 9% of their income on housing costs; in 2021 that figure stood at 17%. By the end of next year it will be 27%.

These are averages. The lower a household's income, then the higher percentage their housing costs will be.

It's stripping the working class of their access to property ownership and the store of wealth that provides. But this doesn't stop there. It is now moving up the social ladder and affecting the middle classes. At an accelerating rate.

[Daily Express bot]

It went down to about 12% after about year or so as far as I can recall . Rates in the 70’s and early 80’s were always around 7% or more. Banks only offer fixed rates when they fancy the rates will go down. It was touch and go for ages when rates were 15%, my wages were not increasing and I had to sell my nice car to make ends meet.

Princess Vanden Plas?

More likely 300cc bubble car sold for £100 in 1982 to cover the mortgage.

I thought I was your foe? Did you miss me?

[Daily Express bot]

In 1980 the average family spent just 9% of their income on housing costs; in 2021 that figure stood at 17%. By the end of next year it will be 27%.

These are averages. The lower a household's income, then the higher percentage their housing costs will be.

It's stripping the working class of their access to property ownership and the store of wealth that provides. But this doesn't stop there. It is now moving up the social ladder and affecting the middle classes. At an accelerating rate.

I do not know where you got those figures from but it does not relate to what I was paying for my property then. I was paying half my salary to pay for just my mortgage them. Had rates and energy on top of that. I had a well paid job too .

[Dunners]

In 1980 the average family spent just 9% of their income on housing costs; in 2021 that figure stood at 17%. By the end of next year it will be 27%.

These are averages. The lower a household's income, then the higher percentage their housing costs will be.

It's stripping the working class of their access to property ownership and the store of wealth that provides. But this doesn't stop there. It is now moving up the social ladder and affecting the middle classes. At an accelerating rate.

I do not know where you got those figures from but it does not relate to what I was paying for my property then. I was paying half my salary to pay for just my mortgage them. Had rates and energy on top of that. I had a well paid job too .

Figures are from Resolution Foundation. And of course they do not relate to what you were paying. As I said, they are averages. This is about looking at the national picture, not just you.

[Daily Express bot]

In 1980 the average family spent just 9% of their income on housing costs; in 2021 that figure stood at 17%. By the end of next year it will be 27%.

These are averages. The lower a household's income, then the higher percentage their housing costs will be.

It's stripping the working class of their access to property ownership and the store of wealth that provides. But this doesn't stop there. It is now moving up the social ladder and affecting the middle classes. At an accelerating rate.

I do not know where you got those figures from but it does not relate to what I was paying for my property then. I was paying half my salary to pay for just my mortgage them. Had rates and energy on top of that. I had a well paid job too .

Figures are from Resolution Foundation. And of course they do not relate to what you were paying. As I said, they are averages. This is about looking at the national picture, not just you.

Yes but I am saying that they are so wide of the mark. I am saying I was paying over 70% of my income on mortgage payments and rates in 1980. I was on a decent salary then also. Interest rates then were far higher than they currently are now. I am not asking it to be about me but am informing you what the real world was like from my own experience then.

[spen666]

I do not know where you got those figures from but it does not relate to what I was paying for my property then. I was paying half my salary to pay for just my mortgage them. Had rates and energy on top of that. I had a well paid job too .

Figures are from Resolution Foundation. And of course they do not relate to what you were paying. As I said, they are averages. This is about looking at the national picture, not just you.

Yes but I am saying that they are so wide of the mark. I am saying I was paying over 70% of my income on mortgage payments and rates in 1980. I was on a decent salary then also. Interest rates then were far higher than they currently are now. I am not asking it to be about me but am informing you what the real world was like from my own experience then.

"Recollections may Vary" to quote some rich old lady

[Daily Express bot]

Figures are from Resolution Foundation. And of course they do not relate to what you were paying. As I said, they are averages. This is about looking at the national picture, not just you.

Yes but I am saying that they are so wide of the mark. I am saying I was paying over 70% of my income on mortgage payments and rates in 1980. I was on a decent salary then also. Interest rates then were far higher than they currently are now. I am not asking it to be about me but am informing you what the real world was like from my own experience then.

"Recollections may Vary" to quote some rich old lady

Not in my case, I have my mortgage statements and pay slips going back donkeys years.

Not difficult to find out what the interest rates were then.

Building materials were expensive pro rata then but nowhere near what they are now. I think a pint was over a pound then . A decent meal out and a drink about a fiver. I had a second hand mark 2 Escort which I bought for £85.00 off a work colleague

[Tuffers#2]

Princess Vanden Plas?

More likely 300cc bubble car sold for £100 in 1982 to cover the mortgage.

I thought I was your foe? Did you miss me?

You are on foe Oiram. If someone quotes you I see it.

[Tuffers#2]

It went down to about 12% after about year or so as far as I can recall . Rates in the 70’s and early 80’s were always around 7% or more. Banks only offer fixed rates when they fancy the rates will go down. It was touch and go for ages when rates were 15%, my wages were not increasing and I had to sell my nice car to make ends meet.

Oiram sells car due to high mortgage in the 80s.