Mortgage Rate Rises

The family across the road from us just moved. I assumed it would be to a bigger and better house as they moved across from a semi to their detached on the same street in 2017/18 and seemingly could afford to do so as they always had a new car, doing renovations etc.
Turns out they moved to Southampton because they couldn't afford their mortgage anymore.
 
panthro said:
The family across the road from us just moved. I assumed it would be to a bigger and better house as they moved across from a semi to their detached on the same street in 2017/18 and seemingly could afford to do so as they always had a new car, doing renovations etc.
Turns out they moved to Southampton because they couldn't afford their mortgage anymore.
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I think that unaffordability based selling and/or downsizing is happening more often right now than people would like to admit, and I think it's fairly likely to become even more common over the next twelve months.
 
fez said:
  • Yes my parents generation didn't waste money they didn't have and scrimped and saved for these things - well done boomers,
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The part that's always missing from this part of the equation when talking about the older generation, is that they didn't live in a consumerist society back then, so they didn't have the multitude of goods and services on offer. Nor did they have access to credit to buy the non-existant luxuries anyway. Society was so fundamentally different to today, the way they lived their life has as much relevance to modern society as someone from the 1920's equating how they were brought up to your parents in the 70's.

Our whole economy nowadays is run on consuming goods and services we don't actually need and being encouraged to take credit out to do it, that just wasn't the case back then. So it's not actually the pat on the back the older generation try and portray it as, that they were 'sensible and saved' etc and didn't blow their money on avacados, take aways and mobile phones, they didn't have any choice :p
fez said:
  • you are correct that far too many people now expect to be able to buy a house, eat takeaway twice a week, go out at the weekends and have a nice car, all on an average salary.
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Because as you say, the average standard of life is far higher than it was for the boomers (in respect of having more 'stuff' and disposable income) so what is regarded as a basic expectation of life's returns are higher than before.

That's even before we get into the programming society does (via advertising) that entice people with said goods and services, equating material wealth with success and your self worth and then offering you the credit to facilitate it.

fez said:
My parents are set up reasonably well in their retirement now but dear lord did they earn it. Never spent a penny they didn't have and anything they bought was almost certainly a necessity. People living on benefits now would expect a far higher quality of life and my dad worked full time for the tax office and my mum looked after us and was a hair dresser.

Boomers struggle to relate to people complaining about housing costs when they see such a disconnect between when they were trying to buy and house and how they see people behave now who are trying to do the same.
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The converse to that is that a man working an average job could afford to buy a house and support a wife and multiple children on that one income. Nowadays it's taking both people to work to pay for the house and people deciding not to have children because they can't afford it!
 
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IvanDobskey said:
I've not exactly been a mega earner, and I have been able to get to a point where I have nearly paid off my 4 bed detached at 50.
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More info is needed on that TBH... When did you purchase your house, purchase price and mortgage amount and term?

Lots of people say things that, on the face of it seem reasonable, but there is more nuance and reasons as to why when the full details are revealed.
 
Me and the Mrs got a flat in 2017. We have both almost doubled our earnings since... Still not financially acceptable to "move up" and get a house.... even a modest terraced style house.

Increase in wage hasn't correlated with increased mortgage or property. Not that there is any rule that said it should.

Due to prices rising since and mortgage rates rising.

House prices apparently dipped this last 12month.... not really seen that, just a slower market. But property prices are due to increase next year....? Again, not sure why or how... all just made up magic.

Probablt said before, but covid skewed things here, prices went up sharp with still at the time low rates. Ever since it seems, people still want the high prices without accepting the new high rates. Everyone wants their cake really. That's just my own personal experience. We went through a phase of looking, bidding etc... but it was just obscene so we have given up for now.
 
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Rates seem to have dropped across the board over the last day or so. Will be calling the bank to get my renewal in April onto the new rate. May have to do it a few times before I renew.
 
fez said:
There are 2 sides here, both of whom have very good points and neither of which is willing to accept the others opinion at all.

  • Yes, my parents generation had far cheaper housing. - well done current house buyers you are correct
  • Yes my parents generation didn't waste money they didn't have and scrimped and saved for these things - well done boomers, you are correct that far too many people now expect to be able to buy a house, eat takeaway twice a week, go out at the weekends and have a nice car, all on an average salary.
My parents are set up reasonably well in their retirement now but dear lord did they earn it. Never spent a penny they didn't have and anything they bought was almost certainly a necessity. People living on benefits now would expect a far higher quality of life and my dad worked full time for the tax office and my mum looked after us and was a hair dresser.

Boomers struggle to relate to people complaining about housing costs when they see such a disconnect between when they were trying to buy and house and how they see people behave now who are trying to do the same.
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There are also lots of people on average salaries who work hard, dont have takeaways or nice cars.

I suspect the people who do have nice cars, takeaways etc, and are on average salaries are the ones that will struggle now, and maybe that is a good thing.

I agree consumerism is rife at the moment, well... was rife maybe, but it doesn't change the fact that for those that dont buy in to it* so like for like - I still think the previous generation had better basics, somewhere to live and a job, they have better pensions then we ever will, had an NHS that worked, a police force that actually gave a ****, freedoms we simply dont have anymore.... I could go on.



*pun somewhat intended
 
Freakbro said:
The part that's always missing from this part of the equation when talking about the older generation, is that they didn't live in a consumerist society back then, so they didn't have the multitude of goods and services on offer. Nor did they have access to credit to buy the non-existant luxuries anyway. Society was so fundamentally different to today, the way they lived their life has as much relevance to modern society as someone from the 1920's equating how they were brought up to your parents in the 70's.

Our whole economy nowadays is run on consuming goods and services we don't actually need and being encouraged to take credit out to do it, that just wasn't the case back then. So it's not actually the pat on the back the older generation try and portray it as, that they were 'sensible and saved' etc and didn't blow their money on avacados, take aways and mobile phones, they didn't have any choice :p


Because as you say, the average standard of life is far higher than it was for the boomers (in respect of having more 'stuff' and disposable income) so what is regarded as a basic expectation of life's returns are higher than before.

That's even before we get into the programming society does (via advertising) that entice people with said goods and services, equating material wealth with success and your self worth and then offering you the credit to facilitate it.
Click to expand...
Young people just have to live like it's the 1950's and eat bread and dripping for tea, simples. /s
 
Freakbro said:
The part that's always missing from this part of the equation when talking about the older generation, is that they didn't live in a consumerist society back then, so they didn't have the multitude of goods and services on offer. Nor did they have access to credit to buy the non-existant luxuries anyway. Society was so fundamentally different to today, the way they lived their life has as much relevance to modern society as someone from the 1920's equating how they were brought up to your parents in the 70's.

Our whole economy nowadays is run on consuming goods and services we don't actually need and being encouraged to take credit out to do it, that just wasn't the case back then. So it's not actually the pat on the back the older generation try and portray it as, that they were 'sensible and saved' etc and didn't blow their money on avacados, take aways and mobile phones, they didn't have any choice :p


Because as you say, the average standard of life is far higher than it was for the boomers (in respect of having more 'stuff' and disposable income) so what is regarded as a basic expectation of life's returns are higher than before.

That's even before we get into the programming society does (via advertising) that entice people with said goods and services, equating material wealth with success and your self worth and then offering you the credit to facilitate it.



The converse to that is that a man working an average job could afford to buy a house and support a wife and multiple children on that one income. Nowadays it's taking both people to work to pay for the house and people deciding not to have children because they can't afford it!
Click to expand...

The last one says a lot.

You cant have a house on a single wage and kids. Not even an above average wage.

Irrespective of money splurging. You just cannot have it anymore.

Base costs are higher vs average earnings.


Its a really slow death spiral. As its causing a decline in birth rates. And unless. Ai/robotics steps in the demographic pyramid flipping to be top heavy will cause huge shift in society
 
panthro said:
The family across the road from us just moved. I assumed it would be to a bigger and better house as they moved across from a semi to their detached on the same street in 2017/18 and seemingly could afford to do so as they always had a new car, doing renovations etc.
Turns out they moved to Southampton because they couldn't afford their mortgage anymore.
Click to expand...

I think if there is one thing that is in no way a good indicator of wealth, it is how new someone's car is/how frequently they get a new car.

Around here, it seems that the smaller and cheaper the house, the nicer the car they have....

I think a massive amount of people just pay silly sums monthly to lease a new car to keep up with their friends/have it as a status symbol etc.
 
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Freakbro said:
Our whole economy nowadays is run on consuming goods and services we don't actually need and being encouraged to take credit out to do it, that just wasn't the case back then. So it's not actually the pat on the back the older generation try and portray it as, that they were 'sensible and saved' etc and didn't blow their money on avacados, take aways and mobile phones, they didn't have any choice :p
Click to expand...

I agree up to a point but not on the "didn't have a choice". They very much did. Takeaways were a thing when I was younger, cars, holidays, expensive presents at christmas, new TVs, Hifis etc. There has always been loads to spend you money on if you want to but the difference now is that people feel that they deserve all these things and should have whatever they want whenever they want and the credit is there and available to them.

Freakbro said:
Because as you say, the average standard of life is far higher than it was for the boomers (in respect of having more 'stuff' and disposable income) so what is regarded as a basic expectation of life's returns are higher than before.
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Which should be the case with every generation although those days of every generation being better off than the last are probably over now.

Freakbro said:
The converse to that is that a man working an average job could afford to buy a house and support a wife and multiple children on that one income. Nowadays it's taking both people to work to pay for the house and people deciding not to have children because they can't afford it!
Click to expand...

Yeah, thats a fundamental shift and potentially a large driving factor in house prices flying up. Most people can afford kids though. Its just how much of a lifestyle hit they are willing to take and how much they will sacrifice. Same as most people being able to afford a house. When you are paying more in rent than you would be on a mortgage then most people can afford a house, they just need to find a deposit. It might take them 5 years plus but it is possible.
 
Jono8 said:
I think if there is one thing that is in no way a good indicator of wealth, it is how new someone's car is/how frequently they get a new car.

Around here, it seems that the smaller and cheaper the house, the nicer the car they have....

I think a massive amount of people just pay silly sums monthly to lease a new car to keep up with their friends/have it as a status symbol etc.
Click to expand...
just got the wife a 2017 would never pcp or lease .. but we only have 1 car .. after 32 yrs with me ..lol she got something nice xc60 .. so you might be right .. we are def not well off :)
 
IvanDobskey said:
It's certainly tough to get a foot on the ladder, but far from impossible. You just have to want it enough. You have to make a lot of sacrifices and start at the bottom rung though. Obviously what part of the country you are in is the real killer. I've not exactly been a mega earner, and I have been able to get to a point where I have nearly paid off my 4 bed detached at 50.
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£40k+...
 
413x said:
The last one says a lot.

You cant have a house on a single wage and kids. Not even an above average wage.

Irrespective of money splurging. You just cannot have it anymore.

Base costs are higher vs average earnings.


Its a really slow death spiral. As its causing a decline in birth rates. And unless. Ai/robotics steps in the demographic pyramid flipping to be top heavy will cause huge shift in society
Click to expand...
My wife hasn't worked since my first born 7 years ago. It's not easy but ultimately I wasn't going to deny her wish of bringing the children up her way.
She'll most likely go back to work once my son is 5/6 - he's currently 4.
 
panthro said:
My wife hasn't worked since my first born 7 years ago. It's not easy but ultimately I wasn't going to deny her wish of bringing the children up her way.
She'll most likely go back to work once my son is 5/6 - he's currently 4.
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same as mine did tho we had no one else to look after them .. lol she did part time from about 6 yrs old to 11yrs .. after that she went back to full time ish .. 30-36 hrs while i did 50+
 
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