Mortgage Rate Rises

[adam cool dude]

You're denying reality mate.

4 TVs = £2,000
Netflix = 200yr
Pc = 2000
2 tablets = 400

Great now you're only 270k short of that house.

I grew up in a council house , on school dinners, went on summer holidays to Europe and I had a hand me down TV /SNES in my room. Council wanted 18k for the house. Same house is now 190k and wages haven't gone up 10x.

Without a leg up it's hard going for most these days.

I am not saying it isn't harder and for a single person it is really difficult unless you are on a good wage but for two people working getting on the ladder with a 190k house is easy. Even a single person living at home with parents could make it on a decentish wage.

If I was in my mid twenties on average wage of 30k with a girlfriend on similar we would be in our bought house withing two years and even that would get something towards the south too.

The average house price is 300k at the moment. Take home between a couple on 30k each would be around 4k a month. Easily between both you can save 1k a month so in two years you have 25 grand. Just a quick gander on Barclays and they would lend 225k to buy a house worth 250k.

On current interest rates that is 1.1k a month on a 5 year fixed rate 30 years. More than manageable for a couple with no kids bringing in 4k a month.

Get a house worth just 200k and you are looking at £889 a month mortgage on 30 years. Again more than manageable.

Problem is especially for youngungs living at home you can have a very rich lifestyle on a modest wage but they do not want to make the sacrifice to get a home of their own.

 

[Freakbro]

Inflation down at 2% but an interest rate cut is "unlikely"

They are taking us for mugs aren't they

Not really, as the economic picture is more nuanced than 1 headline number.

Ie: Within that figure, services are still running at 5.7% which is higher than predicted.

The markets, who analyse these things far more than the public have just slightly reduced their expectations of a rate cut in Aug.

 

[MichaelAwkward]

We really shouldn’t be in any rush to lower rates this time, not just to ease the pain on a small portion of the population unlucky enough to remortgage recently.

Insane low rates are partly what caused this mess.

 

[Freakbro]

The average house price is 300k at the moment. Take home between a couple on 30k each would be around 4k a month. Easily between both you can save 1k a month so in two years you have 25 grand. Just a quick gander on Barclays and they would lend 225k to buy a house worth 250k.

But then in 2 years house prices would have risen by a higher % than their earnings and the deposit they need is now £35k

 

[slinxy]

Inflation down at 2% but an interest rate cut is "unlikely"

They are taking us for mugs aren't they

For a lot of us, it's already baked in when we renewed our mortgages.. any drop in interest rates would be a small one and won't be worth it once you consider the exiting fees of our current deals.

I brought my house and missed out on the sub 2% rates by a few months but at the same time I got my remortgage a few months before the rates went totally crazy.. swings and roundabouts..

 

[adam cool dude]

But then in 2 years house prices would have risen by a higher % than their earnings and the deposit they need is now £35k

Okay so they need to save another year and get a deposit of 45k. You can pretty much find a 30k salary anywhere in the country if you are willing to put in the work. Even the most basic jobs will pay that with overtime all over the country.

It obviously isn't as easy to get on the ladder as it used to be but disputing that it is difficult to get a house is just down to choice. People either do not want to put the hours in, unwilling to relocate to a cheaper area, unwilling to save and maybe go without a few luxuries for a couple of years.

Especially around here with the right mindset and perhaps a trade under your belt to get a decent wage you could quite easily be in your own house before you hit 25 years old.

 

[BUDFORCE]

I agree with some of the above posts, the damage has already been done might as well get the full benefit of keeping the interest rate, or at least similar.

Dropping it back down to anywhere near what it was would be a disaster.

Basically be like starving yourself for 3 months to loose weight, only to go on a 3 week eating marathon and put it all back on.

 

[Penfold101]

There’s also the massive assumption that you’re in a couple and don’t have to pay rent on somewhere already.

Rent, council tax, energy bills, living some sort of life and save for a deposit on 30k? You’re just chasing house prices and losing.

 

[Jono8]

Okay so they need to save another year and get a deposit of 45k. You can pretty much find a 30k salary anywhere in the country if you are willing to put in the work. Even the most basic jobs will pay that with overtime all over the country.

It obviously isn't as easy to get on the ladder as it used to be but disputing that it is difficult to get a house is just down to choice. People either do not want to put the hours in, unwilling to relocate to a cheaper area, unwilling to save and maybe go without a few luxuries for a couple of years.

Especially around here with the right mindset and perhaps a trade under your belt to get a decent wage you could quite easily be in your own house before you hit 25 years old.

How much do you think you can realistically save on a 30k salary after all costs or living taken off? Not a lot is the answer.

Only really possible to save a deposit in a few years if you don't have to pay rent and not many have that luxury.

 

[adam cool dude]

How much do you think you can realistically save on a 30k salary after all costs or living taken off? Not a lot is the answer.

Only really possible to save a deposit in a few years if you don't have to pay rent and not many have that luxury.

Between two people on the same easily 1k a month.

4k a month take home between the two. 1k on rent, 1k on bills, 500ish on everything else. £1500 left over for the month. It's not hard but you need to be frugal for a good 2-3 years which is easier said then done but after those 3 years you are paying off your own mortgage instead of someone else's.

 

[Penfold101]

Between two people on the same easily 1k a month.

4k a month take home between the two. 1k on rent, 1k on bills, 500ish on everything else. £1500 left over for the month. It's not hard but you need to be frugal for a good 2-3 years which is easier said then done but after those 3 years you are paying off your own mortgage instead of someone else's.

Single people can go swivel apparently.

 

[b0rn2sk8]

Minimum wage is now £22k (37 hours). £30k is only £4/hour above minimum wage these days at 37 hour week. If you are on a 40 hour week it’s only £3/hour above minimum wage.

The middle is getting squeezed hard these days from both the top and the bottom.

 

[413x]

Between two people on the same easily 1k a month.

4k a month take home between the two. 1k on rent, 1k on bills, 500ish on everything else. £1500 left over for the month. It's not hard but you need to be frugal for a good 2-3 years which is easier said then done but after those 3 years you are paying off your own mortgage instead of someone else's.

I agree if you're in a couple and you're renting in an average area on average salary you should be able to save 1k a month.
Which should be enough.

The big thing is that's a couple both earning average.

And you then both have to have the same mindset.

 

[413x]

Minimum wage is now £22k (37 hours). £30k is only £4/hour above minimum wage these days at 37 hour week. If you are on a 40 hour week it’s only £3/hour above minimum wage.

The middle is getting squeezed hard these days from both the top and the bottom.

Yeah if you have any sort of stress but are below average salary.. You may as well just do any job.

 

[adam cool dude]

Single people can go swivel apparently.

For a single person just as an example as it is the industry I work in. A trucker living in the cab all week will bring in 50-60k a year and have very low expenditure because he is away from home for 4 nights a week so he only needs to rent a small flat for the other 3 nights. You need 0 education to get that job and could get a 0% credit card to get your licence if you have no money then pay it off once you are earning. Even a trucker that does Monday to Friday who is home every night is making 45k+ but you are working 50-60 hours a week.

If I was single that would be more than enough for myself to have a comfortable lifestyle in the UK today and the bonus with that kind of job I can live anywhere in the UK as my commute is only coming in the Monday and going home on the Friday.

I am not saying that being a trucker is fantastic but it is a means to a salary that requires 0 education and a months training at most. It is available to everyone. People scoff at it because it is hard work.

Yes I agree the days of working 9-5 on a minimum wage salary to buy a house are most likely gone but moaning about it will not change it. Working more will. It just depends on what you want in the end.

 

[413x]

With inflation at 2pc (yeah I know it's headline) I don't see any reason why can't at least drop a 0.25pc.

They don't have to drop it again for months it's not like doing it once means it has to drop like it rose.

I agree we don't want the 0.1pc rates of past. As, like said, it made borrowing too cheap.

 

[413x]

For a single person just as an example as it is the industry I work in. A trucker living in the cab all week will bring in 50-60k a year and have very low expenditure because he is away from home for 4 nights a week so he only needs to rent a small flat for the other 3 nights. You need 0 education to get that job and could get a 0% credit card to get your licence if you have no money then pay it off once you are earning. Even a trucker that does Monday to Friday who is home every night is making 45k+ but you are working 50-60 hours a week.

If I was single that would be more than enough for myself to have a comfortable lifestyle in the UK today and the bonus with that kind of job I can live anywhere in the UK as my commute is only coming in the Monday and going home on the Friday.

I am not saying that being a trucker is fantastic but it is a means to a salary that requires 0 education and a months training at most. It is available to everyone.

Yes I agree the days of working 9-5 on a minimum wage salary to buy a house are most likely gone but moaning about it will not change it. Working more will. It just depends on what you want in the end.

Its annoying more jobs like this aren't promoted at school to be honest.
I hope it's changed now but I had no idea there were these less obvious jobs that's brought in really good cash for no university and no 6th form time wasting.

But no. University was promoted as some great thing that you SHOULD do.

So many go. And house prices grow. You gain debt. You probably end up in a worse job. With that debt.

I certainly shouldn't have gone to uni. And I know many many others the same! Id be mortgage free now if I hadn't have gone I'm fairly sure

 

[b0rn2sk8]

For a single person just as an example as it is the industry I work in. A trucker living in the cab all week will bring in 50-60k a year and have very low expenditure because he is away from home for 4 nights a week so he only needs to rent a small flat for the other 3 nights. You need 0 education to get that job and could get a 0% credit card to get your licence if you have no money then pay it off once you are earning. Even a trucker that does Monday to Friday who is home every night is making 45k+ but you are working 50-60 hours a week.

If I was single that would be more than enough for myself to have a comfortable lifestyle in the UK today and the bonus with that kind of job I can live anywhere in the UK as my commute is only coming in the Monday and going home on the Friday.

I am not saying that being a trucker is fantastic but it is a means to a salary that requires 0 education and a months training at most. It is available to everyone. People scoff at it because it is hard work.

Yes I agree the days of working 9-5 on a minimum wage salary to buy a house are most likely gone but moaning about it will not change it. Working more will. It just depends on what you want in the end.

£45k on a 60 hour week is only £14.40 an hour. You are only pulling in that wage by doing 50% more hours than is typical.

If you did normal working. Hours you’d only be on £30k. Not everyone lives to work.

 

[413x]

£45k on a 60 hour week is only £14.40 an hour. You are only pulling in that wage by doing 50% more hours than is typical.

If you did normal working. Hours you’d only be on £30k. Not everyone lives to work.

Don't you get more days off? Like you don't get evenings but you do get days?

 

[b0rn2sk8]

Don't you get more days off? Like you don't get evenings but you do get days?

It depends on the job and what you are doing. There are loads of rules around rest breaks and driving hours. For example, unloading the waggon at the delivery point doesn’t count as a rest break.

Lorry driving can be incredibly isolating and the long distance/night work isn’t well aligned with that most people consider to be family life. It’s a huge mix of long periods of focused concentration followed by hard graft if you also need to unload the waggon.