Mortgage Rate Rises
- Thread starter glenimp617
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reading this thread i fell sorry for you guys down south .. 1k a month rent on a 2 bed ? 170-450k mortgage.. it's a good job you earn good money .. no wonder no one can get on the ladder ..
Soldato
Bro. Us down south are suffering. We need to be millionaire
Caporegime
People can get on the ladder...they just need help from their parents, 2 good earners or a lottery win. Easy peasy.
Saw something the other day saying that I think it was 70-80% of FTB in and around London have help from their parents/family to be able to afford it.
This is one of the biggest issues. The housing market has been sustained because people are willing to do that. The boomer generation with their money has gobbled up a lot of the housing stock and wealth and then give their children some of that to be able to keep the bubble inflated. Then there are those without parents to help them and they are just ******.
We have a nice enough 3 bedroom edwardian house but the next size up from ours is over a million quid and if you look at the next tier down its basically our house but with a loft conversion. If I'm spending £800k on a house I am not having the same amount of living space as my current house and just an extra bedroom which steals all the valuable loft space.
Its crazy. I wonder what percentage of people are living in houses that their "working lives salary" wouldn't even come close to affording them these days. Our next door neighbours have a house worth £500k and he works in a garage, shes a nurse and they have 5 daughters of variable ages. They wouldn't be able to come close to affording their house now. My parents are the same. Basically a single income. Bought via the RTB scheme in the 80s and now have a house worth £300-350k they wouldn't be able to afford now.
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Caporegime
It has got to the point that I actually wonder how anyone lives down south.
We have 40K left on our mortgage but even still we only had 108k in the first place. Have been paying less than £500 a month for the past 13 years. Our household income puts us in top 25% of the country yet we don't have a brand new car sitting on the drive although we don't go without anything and have decent holidays with 2 kids. Zero debt outside of mortgage too.
To live the same quality of life down south I would need around a 500+k mortgage for a like for like house which would be 4 grand a month to pay off around the same time as our mortgage finishes so I would need to find an extra salary of 42k a year just to have the same quality of life as someone down south. I would need to be a 45% tax payer on 130K a year to even think of achieving that. Then when you put it into context a person who is on 130+k a year is living a similar quality of life to a lorry driver on a 50k salary who lives in the midlands. Madness
It is absolutely crazy!
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Permabanned
yep i live in a semi detached 3 bed 3rd room is 7x8 .. paid 90k for it worth 140k now .. down south it would be 2-3x that or more .. crazy prob why i see so many people moving north when they down size .. in reality there getting a bigger house for less ...remember tho you have to stop talking posh
Funny you should say that I've recently hit my stride career wise doubling my income. I'm not looking at a significant step up housing/lifestyle wise which feels logic defying to me. taking that step and getting a nice house in the "nicer areas" almost requires living pay cheque to pay cheque.
yep i live in a semi detached 3 bed 3rd room is 7x8 .. paid 90k for it worth 140k now .. down south it would be 2-3x that or more .. crazy prob why i see so many people moving north when they down size .. in reality there getting a bigger house for less ...remember tho you have to stop talking posh
Wow. Where abouts? What is rent like? As you say down here that would be at least 3 times as much. But wages ain't 3 times.
Iv just sent an email off to l&c and intrgrar as i have noticed that Barclays have dropped the rate on the product I went for which doesn't start until end of June / beginning of July.
I went for 4.15% and is now being listed for 3.95%
Should they action this ? And me keep a look out for any further rate drops ?
I went for 4.15% and is now being listed for 3.95%
Should they action this ? And me keep a look out for any further rate drops ?
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Soldato
When is it you can lock in a new rate? My 5 year fixed comes to an end November 1st. Am I right it's 6 months ahead?
Caporegime
Depends when I locked in at 3.48% for 3 years last November Barclays was 150 days before iirc.
Shock on this thread as people discover housing costs more compared to wages in the south.
Usually 3 months with existing lender and 6 months to lock in deals with different lenders for remortgage. Best tactic is lock in an offer with another lender 6 months out and then nearer the time look at offers from your current lender and see how the market has changed since your 6 month out offer.
6 month's if current lender is nationwide and stay with them.
It varies. Ours was 5 months. 3-6 months seems common
It feels very unfair this. And it is one of the reasons London/south prices are able to maintain their heights.
As someone who stands (one day) to benefit from inheritance I don't think it's fair. I'd support a more hefty inheritance tax.
Inheritance keeps the poor poor like nothing else. You can grow up in poverty, get stuck there and never have any real way (obviously exception ls) out. You may have a worse education, worse upbringing, no help.
Look at anyone who has had early inheritance/help. I they are in easy street thier entire lives afterwards.
Soldato
Since this is a tech forum is it not recognizable that the whole London dynamic might change due to development in tech, remote tech of various kinds becoming more assessable means that premium paid to be close to the centre of one of the worlds most important capitals might not matter in future. Or it'll always be like this because people want that? You can nigh on buy a palace for the price of a modest London house if you go to an unpopular part of the country and are prepared to renovate, in USA apparently its even more extreme because they have so much free area available but also this over competition for space in some areas.
Soldato
One thing to note is that some places outside of London are not friendly towards none carcations.
London is the most diverse of ethnicity in the whole of the UK.
Soldato
I don’t think that will ever change. Tech does have things like cost of living (HCOL, LCOL) based on where you live. You are still expected to be in the office a certain number of days a week for many of tech companies. It’s also a very diverse place that people want to live in which is what will always factor into the location of the tech company.
We have a few sites around the country and London is far more diverse and high performing.
It would also harm their career development. I would also be surprised if even remotely that many people did make that move.
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Just from my perspective half the people in our Manchester office are from London originally. A lot of internal transfers, myself included. It’s been happening for 10+ years now (I moved in 2014) and there has been no harm to anyone’s careers. I earn a good salary (not quite as much as London of course) but due to better affordability up here i have more disposable income and better quality of life.
Housing costs in the north west are FAR more affordable - I sold a very small 1 bedroom flat in London and bought a 2700sqft 4 bedroom Victorian built house with 120ft garden for almost the same price. That’s a really big draw for a lot of people who are fed up with expensive flats in London and want a “normal” house and garden for a reasonable price.
Post pandemic I work in the office 2 days a week and it suits me perfectly.
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