Soldato
Just under 48k to go, so not too bad
I think the term has 14 years to go. But have some savings, so hopefully will get it paid off long before the end.Mortgage Rate Rises
- Thread starter glenimp617
- Start date
I think the term has 14 years to go. But have some savings, so hopefully will get it paid off long before the end.How long can we keep this going until someone busts out the Ronnies/cleese sketch?
As they rightly said, I know my place.
Caporegime
Before tax. If it was after we would easily be able to afford it.
Caporegime
Oh, I thought when people say “take home” is a figure after all taxes, NI contribution and Voluntary Pensions from work. The money that hit the bank account.
You haven’t posted any commentary with this, and the applicable time period isn’t clear, but isn’t that showing that the younger generation is the fittest out of all age groups around now, by far?
Obviously, it’s not showing information across generations (I.e. teens in the 90s vs. 2000s).
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Soldato
That kinda money would have you living like a king in a lot of places. Even with current cost of living crisis.
That's a myth I'm afraid. Torynomics has eroded what many people thought middle class is/was. Country is rigged. 6 figures year dosent change your life to "king status" it just gives you a little breathing room & contingency funds. you still feel rate rises and living increases but you're not on the edge. You get a little more slack before fubar territory but by no means king like. If your salaried and pay income tax it's all giant soup.
Caporegime
I was going to mention that middle class and working class is all basically the same now. Middle class living down south paying 2k mortgage a month is no different to working class paying 500 quid a month on a mortgage north of Watford.
100% this. 6 figures doesn't mean anything down south. I live in a mid 70's semi (Essex) whilst sis in a 4 bed new build detached up north for same sort of money. Me+misses could sell up, climb the ladder but we haven't got the stomach for getting back in this game, esp now rates are sky high. I'd only move it i could WFH 5 days (no longer having to commute into the City), then i'd be shot of the south in a heartbeat, silly prices for old properties and the new builds are bordering on a million for anything resembling an actual 4 bed detached (eg not a 1 master, 1 okay sized room and remaining basically cupboards).
Now i'm expected to fit solar panels, buy an electric car, fit a heat pump along with all the required work with it, which is going to require extensive stuff to make it worth while. So even if folks down south pay off the mortgage because of high wages you've got the next job of bringing your property up to spec that'll likely cost 1/3rd if not more you payed for the property in the first place.
I think if anything it highlights that the traditional class systems of working/middle etc no longer exist. They've become a lot more convoluted.
Typically you wouldn't expect traditional working class people to have been educated at a degree level. But nowadays a lot of people have degrees but can't even get on the property ladder.
I know there's lots of categories in modern class systems, as you could probably quite easily break these down to about a dozen different categories.
But at least when you have an expensive mortgage you are building up a lot of equity you can (if you had to) move and actually live like a king.
That person up north paying 500 a month doesn't have that option.
There are many parts of the country you can live a very very comfortable "no worries" lifestyle on 75k *2
We are on 29 + 55k and we don't have a life of luxury. But we Don't have any money worries. I'd feel even better with that mortgage paid down some though!
On 75k *2...that would be incredible where we live. Would feel like living like a king.
On 75k*2 could pay for a solar panels outright by year end with 0 impact on current spending!
That person up north paying 500 a month doesn't have that option.
There are many parts of the country you can live a very very comfortable "no worries" lifestyle on 75k *2
We are on 29 + 55k and we don't have a life of luxury. But we Don't have any money worries. I'd feel even better with that mortgage paid down some though!
On 75k *2...that would be incredible where we live. Would feel like living like a king.
On 75k*2 could pay for a solar panels outright by year end with 0 impact on current spending!
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Soldato
Surely it's location dependent. £150k in Leeds or somewhere is definitely different to London.
If someone could work remotely, maybe visiting London office weekly /monthly for £75k they would be daft not moving away from London and just moving anywhere within 2-3hrs on the train line. Would have way more disposable income if your mortgage is on a £200k house vs £800k alternative.
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Soldato
i'm fairly certain that like for like you wont find houses with that much of a difference while being any where near london.
£800k vs £550k perhaps, but not down to £200k
That’s the situation we’re in.
I run my company entirely from home these days and my wife does a few hours here and there every now and then just to keep her toes dipped in the workplace.
It just seems ridiculous for us to stay where we are given that we could move just an hour or two north and triple/quadruple the square footage of our house.
The only part that worries me is that I want our kids to have the best opportunities possible and I’m so used to the London connections from a work perspective that I worry I’ll be limiting their opportunities.
It’s probably just because it’s all I know.
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I see a distinct class divide between those who need a job to survive versus those who have a job for a hobby and can just quit. Look at Boris quitting on queue... or TV personalities. The average working person couldn't just do that.
I can see your point, but I'd also add that the likes of Boris also has a high demanding lifestyle which is expensive. So whilst he could easily afford to never work again, he'd need to scale back his lifestyle accordingly. The problem with a lot of celebs/sports/film etc is they don't scale back and eventually run out of money. It's also a lot harder to get back into a high paying job if you've not been on the scene for 10-20 years - you almost become a nobody.
Problem, when you look at the tax amount it hurts, and 70k *2 it is not a lot really these days.
You need to play around to reduce the tax bill.
No such thing as middle class anymore.
Unemployed class, lower and upper working class and upper and lower none working class.
That is how I see it.
At 75k pa the effective tax rate is 33% (50k take home annually)