That wasn't the intention of my post to pat myself on the back.. It was just to show that it is possible and people shouldn't be put of having children because of fear of not being able to afford it.
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Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Try what?
He's too busy funding it, sorry.
But you said yourself, you couldn't afford that house now. That's the problem. Most of the last decade has been easy. It's only going to get harder. Especially now rates are climbing like crazy.
As time goes on, earnings aren't keeping pace with costs. Kids are very expensive, coupled with environment, women's empowerment and hobbies like travel... The cost of living and cost of child care for middle earners is really off putting.
Just so many reasons against it now. Some positive. Some negative.
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Permabanned
Hasn’t that been the case generation after generation? Yet here we are.
How much money have you lost to womens empowerment.
It seems odd that you're attributing being "good with money" as the reason you have a cheap mortgage, after having just admitted that if you had to buy a house today, you wouldn't be able to.
These two statements are in complete contradiction, surely? Do you not think that having purchased your house prior to the recent extreme and absolutely unprecedented swelling of average house prices versus average earnings constitutes luck?
I'm absolutely not having a go, I just don't think those two statements align.
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Permabanned
I have relatively cheap mortgage same as him by the sounds of it but I was offered more. I made a choice to be safer rather than a heightened perceived status.
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Its getting harder, and we have more things to do. No longer is there the need to have someone look after you attitude. No longer are. Women expected to stay at home and look after kids. And the net disposable income is dropping (inflation, mortgage costs, etc).
So all these coming to does seem fairly new. And the birth rates world wide speak to it. I don't think this has lined up in the past. Not over the long term.
What?
What does that even mean? lol
Big house and merc on the drive.
Permabanned
Similar to why a person might buy a merc over an insignia… or designer clothes over non named brands. Image in other words.
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Bingo
Not sure, the last 40 years have been marked by importing deflation making things cheaper with real interest rates falling. This is now reversing and the pain is being felt by people with large debts. The current house prices to earnings ratio surely cannot be sustained in this situation.
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Caporegime
The reason we have a relatively cheap mortgage is because we were extremely lucky to buy our houses just after the 08 crash happened (I do believe we are on our way now to another housing crash but that is another debate).
In 2010 there were repo's going left right and centre and whilst you needed a relatively high deposit (25% ideally) you had pickings like no other. 4 bed detached houses were going for 120k at auction. The house we bought we offered 10k under book because it was on sale for nearly a year. Roll on 13 years and our house has made a good 100k and this is in a affordable part of the country. My brother in law got a 3 bed semi with a massive garden for a little over 100k.
We could manage today to buy the house we live in but would more than likely be a 35 year term instead of 25 and a lot higher payments as our deposit would have been worth a lot less. 0 chance of overpaying either.
The main problem is obviously these super low interest rates we had for a good 10 years which have been nothing more than a ploy to kick the can down the road and done more harm than good.
So many pressures to prop up prices.
Even during covid that unforgivable (imo) stamp duty break.
Now you have huge mortgage debts. Fine at 2pc. But throw in inflation and base rate rises.. Squeaky bum time!
Without that sustained cheap borrowing and various methods to prop it all up, maybe prices wouldn't be so high, and thus so many people wouldn't be on a cliff edge.
I also think borrowing rate is a bit high. 5-4.5x seems too high to me. And I have small core costs.
Permabanned
Unfortunately debt is a gamble and with gambling you either win or lose. I’m not financially savvy but every decision I made in regards to buying my house was driven by what if this housing bubble bursts. I want to minimise both the risk and the fall.
... and have free childcare and buy a house a decade ago
This is like those tabloid clickbait articles about getting on the property ladder.
"I don't know why everyone complains, I bought my own house at 21 just by working a regular job, cutting out avocado and getting a £250,000 deposit from my parents, nothing is stopping anyone doing what I did"
Presumably you bought it when you needed it not as part of an investment strategy... And now through no action of your own other than not borrowing more money which is sort of table stakes for "being good at money" you're likely benefiting from a decent mortgage rate due to the LTV following the increases in value.
Incidentally even if it is worth £250k you've still got a 3 bed house cheaper than any within many miles of me so if you were born here now you couldn't be buying on your income to stay near the free childcare which would just exacerbate the issue.
Because you could afford to buy a house well under the average cost 10 years ago?
I dunno, I think as per the other poster you perhaps ought to calm down with the self appreciation, it's all well and good saying you've been good with money but the suggestion is that others haven't, I mean you haven't been so good that you've saved enough to avoid having some of us here subsidising you and your kids..
Which is fine, I very much support the welfare state but rather than claiming to be good at money when the evidence would suggest you're simply not bad with money you should be panicking about your kids ever owning a house and railing against these synthetic increases in your property value?