I would have said the last time mortgages might have been around £50k, the interest rates would have been around 15%. I would say mortgages are easier to maintain now than back in the 80’s or 90’s.
Phone and tv contracts have been around longer than you think. However what has changed is that back in the 80/90 even ealry 00's you didnt NEED a big mobile phone contract, tv package or whetever. Nowadays people NEED those to survive life. If you havent had something before it comes along you can do without it, it youv'e always had it you cant understand how people did without it.
As did I when I first started working, and only went to monthly in the bank payments around 84. It made financial planning so much easier, and you more careful.In my dad's day, you got a wage packet on a Friday, when the cash was gone, it was gone! Very easy to notice.
This is exactly it, the other problem is people think they are entitled to these things and working and saving for something seems to be a dying activity.I was helping a (younger) colleague sort out his remortage prep... I asked what he spent a year on car, phone, Sky, netflicks etc etc, he hadnt a clue. He had never done an income/expenditure breakdown in his life.... so he did, and was shocked. Guess what, he had no savings, no pension payments and increasing borrowing. He blamed the governemnt for eroding real incomes...I (silently) blamed his lack of financial savvy, but hey-ho! Lets see what he does with the advice he got!
In my dad's day, you got a wage packet on a Friday, when the cash was gone, it was gone! Very easy to notice.
I was helping a (younger) colleague sort out his remortage prep... I asked what he spent a year on car, phone, Sky, netflicks etc etc, he hadnt a clue. He had never done an income/expenditure breakdown in his life.... so he did, and was shocked. Guess what, he had no savings, no pension payments and increasing borrowing. He blamed the governemnt for eroding real incomes...I (silently) blamed his lack of financial savvy, but hey-ho! Lets see what he does with the advice he got!
In my dad's day, you got a wage packet on a Friday, when the cash was gone, it was gone! Very easy to notice.
Slightly different question... anyone here taken a covid mortgage holiday... I did and managed to confuse the bank completely. the scenario is simple
Assume.. my mortgage is 2k per month. Roughly 1k for interest and 1k for principle
I take a holiday, but i dont want to be hit by a big charge later... hence i decide to pay 1.3k. My initial assumption was that the 1.3 would go directly to principle rather than interest. This way, i am increasing my principle payment by 30% while reducing my monthly outgoing by 700 quid. Spoke to a guy from the bank and wanted to know how it is calculated. For the life of him, he could not explain the calculations. At the end, he said, dont worry, the overpayment is good and let us see what happens when the holiday finishes.
I apologise if I have misunderstood what you are saying here, but when the bank grants you a payment holiday it is simply that and not an interest holiday. You will therefore at some point need to pay both the interest and the principle you have not paid during the holiday. I guess you confused the bank because they do not allocate any payments in the way you are asking them to. Simply they take any payments off what you owe them (principle plus interest).Slightly different question... anyone here taken a covid mortgage holiday... I did and managed to confuse the bank completely. the scenario is simple
Assume.. my mortgage is 2k per month. Roughly 1k for interest and 1k for principle
I take a holiday, but i dont want to be hit by a big charge later... hence i decide to pay 1.3k. My initial assumption was that the 1.3 would go directly to principle rather than interest. This way, i am increasing my principle payment by 30% while reducing my monthly outgoing by 700 quid. Spoke to a guy from the bank and wanted to know how it is calculated. For the life of him, he could not explain the calculations. At the end, he said, dont worry, the overpayment is good and let us see what happens when the holiday finishes.
Not yet... but the mortgage holiday is open to all.
Unfortunately many of the parents of the current younger generation - such as those of us who had our children in the late 80s to mid 90s - often did not set much of an example in respect of saving. Through the 1990s and well into the 2000s credit was easily available and with ever rising house prices, getting extensions to mortgages was also dead easy. I recall applying for a £17,000 extension to my mortgage and getting the cash in my bank account within 3 days of a quick chat with my lender's mortgage advisor - she just took my word for it being affordable. I couldn't believe how easy it was. Nuts! As a result our children grew up knowing that we could get pretty much what we wanted (within reason) when we wanted it. Fortunately they understand the reality of today. However us of the boomer-age are not blameless.
Slightly different question... anyone here taken a covid mortgage holiday... I did and managed to confuse the bank completely. the scenario is simple
Assume.. my mortgage is 2k per month. Roughly 1k for interest and 1k for principle
I take a holiday, but i dont want to be hit by a big charge later... hence i decide to pay 1.3k. My initial assumption was that the 1.3 would go directly to principle rather than interest. This way, i am increasing my principle payment by 30% while reducing my monthly outgoing by 700 quid. Spoke to a guy from the bank and wanted to know how it is calculated. For the life of him, he could not explain the calculations. At the end, he said, dont worry, the overpayment is good and let us see what happens when the holiday finishes.
