Mortgage struggles

[chellie]

One wage coming in for us when our rates hit the 15%. Didn't own a car or mobiles and had to watch every penny. No holidays away from home either. We spent time off work either doing jobs around the house or on day trips.

There does seem to be an expectation for lots of people to have fancy cars on PCP and expensive holidays and spend above their means.

 

[GreiginFife]

Think some of you are wasted on here, get those fantastic intellects down to the ole BoE and get them sorted out.

Tell them they are doing it all wrong and you have a much better idea

 

[BiMGuy]

One wage coming in for us when our rates hit the 15%. Didn't own a car or mobiles and had to watch every penny. No holidays away from home either. We spent time off work either doing jobs around the house or on day trips.

There does seem to be an expectation for lots of people to have fancy cars on PCP and expensive holidays and spend above their means.

There are millions of families today on one income that don’t have a car or go on expensive holidays.

Just like when you didn’t have a car or go on expensive holidays, there would have been a hell of a lot of people who still did.

 

[PJ87]

Mortgage rates: 'I have £50,000 but can't buy a house'

Young people say buying feels hopeless and they are penalised as renters are unable to save.

www.bbc.co.uk

A well timed article

£50k savings and can't get on the ladder

The market is crazy

Stuck paying half her wages renting

Mad

 

[Tashyboy]

Mortgage rates: 'I have £50,000 but can't buy a house'

Young people say buying feels hopeless and they are penalised as renters are unable to save.

www.bbc.co.uk

A well timed article

£50k savings and can't get on the ladder

The market is crazy

Stuck paying half her wages renting

Mad

Not doubting what you said but I have had a quick Google of 3 bed houses in Cardiff. flippin eck ( and that’s an understatemenT )£300 plus per week for rent.
The whole point of buying your own place was security, now it seems trying to buy your own place is a massive gamble especially with the interest rates being so well unreliable.

 

[ColchesterFC]

Mortgage rates: 'I have £50,000 but can't buy a house'

Young people say buying feels hopeless and they are penalised as renters are unable to save.

www.bbc.co.uk

A well timed article

£50k savings and can't get on the ladder

The market is crazy

Stuck paying half her wages renting

Mad

I read that earlier and was going to post it in the random irritations thread. If you have a look on Rightmove there are loads of properties in Cardiff that would be within budget. It's not that she can't afford to buy somewhere it's that she doesn't want to buy somewhere within her budget. She could easily get on the property ladder if she was willing to compromise.

When we bought last year we compromised on location to be able to afford a house that works for us. To have bought in our preferred area would've been around £80k more expensive.

 

[Tashyboy]

I read that earlier and was going to post it in the random irritations thread. If you have a look on Rightmove there are loads of properties in Cardiff that would be within budget. It's not that she can't afford to buy somewhere it's that she doesn't want to buy somewhere within her budget. She could easily get on the property ladder if she was willing to compromise.

When we bought last year we compromised on location to be able to afford a house that works for us. To have bought in our preferred area would've been around £80k more expensive.

The bit re compromise, I totally agree.Sometimes expectations don’t meet budget and something has to be compromised on.

 

[PJ87]

I read that earlier and was going to post it in the random irritations thread. If you have a look on Rightmove there are loads of properties in Cardiff that would be within budget. It's not that she can't afford to buy somewhere it's that she doesn't want to buy somewhere within her budget. She could easily get on the property ladder if she was willing to compromise.

When we bought last year we compromised on location to be able to afford a house that works for us. To have bought in our preferred area would've been around £80k more expensive.

I agree re compromise however there must be something in it or the BBC wouldn't run it , I mean we put down 50k on our house and it was only because of my wage they let us have it

That's when prices were imo crazy and we paid 300k, now there full on insane in the membrane

I should add back then only reason we had that as deposit was because we were compromising on houses and looking outside the borough , my parents gifted us it as they wanted to keep us close to home.

 

[IanM]

Most of the issues raised here have relevance.

There's a few glaring omissions too.

But, anyone currently in a squeeze takes no comfort in an oldie, who has paid off their mortgage, telling them "it were tough in our day!"

That said, no way was I buying a house in my home town of Guildford in 1988. I ended in Swindon. Now that's a sacrifice!

 

[PJ87]

Most of the issues raised here have relevance.

There's a few glaring omissions too.

But, anyone currently in a squeeze takes no comfort in an oldie, who has paid off their mortgage, telling them "it were tough in our day!"

That said, no way was I buying a house in my home town of Guildford in 1988. I ended in Swindon. Now that's a sacrifice!

Length of mortgage gets overlooked aswell, ours was a 35 year one to keep it affordable and then we overpay to hopefully get it paid off in 30

Most who have paid it off I'd say did it in a much shorter time span

But Im not saying I have it tough. My mortgage is affordable to me, we both have changed jobs for the better since getting it and have no plans to upsize ever so even if rates rise higher we can stomach it and just ride it out until it finishes.

It's my friends who are struggling I feel for.

 

[ColchesterFC]

I agree re compromise however there must be something in it or the BBC wouldn't run it , I mean we put down 50k on our house and it was only because of my wage they let us have it

That's when prices were imo crazy and we paid 300k, now there full on insane in the membrane

I should add back then only reason we had that as deposit was because we were compromising on houses and looking outside the borough , my parents gifted us it as they wanted to keep us close to home.

There are 214 properties within 1 mile of Cardiff city for between £60k and £140k. I've used £140k as the upper limit as the article says that she spends almost half her wages on rent of £775 per month. That gives an approx annual income of £20k, so with 4.5 times salary plus her deposit that is the upper limit. Even at £140k she'd only be paying just over £600 a month in mortgage payments, at 6.5% interest rate, and saving almost £175 compared to her rent. It's not that she can't but a house as she's trying to claim, she's just not prepared to buy somewhere she can afford and would rather whine in the media about it. Maybe tomorrow the BBC would like to do a story about me wanting a Ferrari but not being able to buy one because they're too expensive.

Rightmove.co.uk

Search over a Million properties for sale and to rent from the top estate agents and developers in the UK

www.rightmove.co.uk

 

[RichA]

There are 214 properties within 1 mile of Cardiff city for between £60k and £140k. I've used £140k as the upper limit as the article says that she spends almost half her wages on rent of £775 per month. That gives an approx annual income of £20k, so with 4.5 times salary plus her deposit that is the upper limit. Even at £140k she'd only be paying just over £600 a month in mortgage payments, at 6.5% interest rate, and saving almost £175 compared to her rent. It's not that she can't but a house as she's trying to claim, she's just not prepared to buy somewhere she can afford and would rather whine in the media about it. Maybe tomorrow the BBC would like to do a story about me wanting a Ferrari but not being able to buy one because they're too expensive.

Rightmove.co.uk

Search over a Million properties for sale and to rent from the top estate agents and developers in the UK

www.rightmove.co.uk

Yep. I've spotted BS in BBC money stories before. It's as if they're written by staffers who have no grasp of basic maths and assume the same of their readers.

 

[PJ87]

There are 214 properties within 1 mile of Cardiff city for between £60k and £140k. I've used £140k as the upper limit as the article says that she spends almost half her wages on rent of £775 per month. That gives an approx annual income of £20k, so with 4.5 times salary plus her deposit that is the upper limit. Even at £140k she'd only be paying just over £600 a month in mortgage payments, at 6.5% interest rate, and saving almost £175 compared to her rent. It's not that she can't but a house as she's trying to claim, she's just not prepared to buy somewhere she can afford and would rather whine in the media about it. Maybe tomorrow the BBC would like to do a story about me wanting a Ferrari but not being able to buy one because they're too expensive.

Rightmove.co.uk

Search over a Million properties for sale and to rent from the top estate agents and developers in the UK

www.rightmove.co.uk

She said she couldn't get the mortgage not that she couldn't afford it tho? As in they wouldn't lend her the amount not that the amount was too much pcm

 

[GB72]

I read that earlier and was going to post it in the random irritations thread. If you have a look on Rightmove there are loads of properties in Cardiff that would be within budget. It's not that she can't afford to buy somewhere it's that she doesn't want to buy somewhere within her budget. She could easily get on the property ladder if she was willing to compromise.

When we bought last year we compromised on location to be able to afford a house that works for us. To have bought in our preferred area would've been around £80k more expensive.

I do agree with the compromise elelement. I remember moving several times before I could afford the house I wanted in the area I wanted. I had to buy smaller in other areas and sell on after a few years, each time getting a bit nearer where I wanted to end up. Certainly seen it with younger peopke I know that they want to start in that dream home in a dream location. I know that this is a massive generalisation but it is called the property ladder for a reason and you need to climb it one rung at a time to get to your ideal destination.

That said, it is a tangent to the problem of people coming off fixed rates. I am lucky, I went on to a 5 year fixed before this started but that was luck. I do, however, think that there is some exageration here in that 5 years fixed mortgages have not been sub 2% for a long time and have been at 3-4% or higher for a while now and so there is some exageration in taking the lowest and highest examples. That said, it does cause a struggle and the fact is that most people buying their first home are pretty much maxed out and I do not think there was ever a time when people were comfortable at this stage in their like.

What does frustrate is that this is getting all of the news when there have been simiilar mortgage issues for older people for years. People stuck on high variable rates becuase banks will not offer a new product at a fixed rate due to their age.

 

[ColchesterFC]

She said she couldn't get the mortgage not that she couldn't afford it tho? As in they wouldn't lend her the amount not that the amount was too much pcm

No she didn't. She said high interest rates and lack of affordable housing is the problem. And then says her salary won't cover £200k mortgage. She needs to stop whining and adjust her expectations.

 

[PJ87]

.

What does frustrate is that this is getting all of the news when there have been simiilar mortgage issues for older people for years. People stuck on high variable rates becuase banks will not offer a new product at a fixed rate due to their age.

Whilst I agree with this I have seen news before where people were stuck on variable because (when affordability checks were a thing) the banks failed them to get onto cheaper fixed deals

 

[PJ87]

No she didn't. She said high interest rates and lack of affordable housing is the problem. And then says her salary won't cover £200k mortgage. She needs to stop whining and adjust her expectations.

Sorry that's not what she said at all.

"My salary isn't enough to cover the threshold to get a mortgage of £200,000," she said.

So she is looking at 250k houses by that looks , or less with 200k mortgage and some aside for fees and that

However she could get less mortgage but I'm going on what she actually said .

 

[GB72]

Whilst I agree with this I have seen news before where people were stuck on variable because (when affordability checks were a thing) the banks failed them to get onto cheaper fixed deals

Agreed, both happen and both a pretty scandelous. In my mind, you should be automatically qualified for a new fixed rate deal so long as you are not changing your level of borrowing and that is how it always used to be. When I change to a new fixed rate, I have never been asked for further details and I am not sure there were even further credit checks. That only ever happened if I wanted to borow more.

 

[cliveb]

Sorry that's not what she said at all.

"My salary isn't enough to cover the threshold to get a mortgage of £200,000," she said.

So she is looking at 250k houses by that looks , or less with 200k mortgage and some aside for fees and that

However she could get less mortgage but I'm going on what she actually said .

So she wants to buy a house, right?
Even though she's single.
Most of the people I know (myself included) got on the property ladder by buying a small flat to start with.

I'm also perplexed by her claim to have a "well paid full time job" when £775 a month is half her salary.

This is another click-bait BBC article.

 

[BiMGuy]

Is it so shocking that people don’t want to buy a cheap house in a hole?