Mortgage Rate Rises

slinxy said:
I wouldn't have be able to afford to buy this house 6 years ago, if it wasn't for help from my family. It's not the cost of the mortgage payments, as it was roughly the same as my rent back at the time. It's getting the 10% deposit together.

It's easy to say in a position where you have managed it, but if you cast your mind back to how difficult it was at the time... no one had it easy. But with certainly cost of living being increased disproportionality, like car insurance and other bills.

Heck, I'm still shocked at the prices of used cars at the moment. Wasn't that long ago I could pick up a top of the range A3 that was only 4 years old for around 7k, now that money would pick me up one that's over 10 years old.

Honestly speaking... I think I would be strugged maintaining this house with the cost of living the way it is without my salary going up by 25% due to switching jobs.
Click to expand...

We nearly pulled out of this purchase as bought pre covid. Ie sale was going through a month before we were all sent to WFH.

I was absolutely convinced prices would tank due to job losses. And we'd put an offer in over the asking (it was OIEO sale) so high risk of negative equity.
I was sure covid was going to be bad when others were saying it was going to blow over.

If we had been early stages I'd have pulled out. But we were so far in, and that's the only reason I carried on.

I think I'd have been right.. Except for furlough and stamp duty break. Never expected that. Couldn't believe it.

Then (as we all know) house prices rocketed.


This house went from 260 to 320 pretty quickly.
That's an extra 60k. That's more than our entire deposit.. Added in a year!
Rather than having a 35k deposit. We'd have needed a 95k deposit for the very same house.

So we'd have been priced out... In a year! That's the sort of thing FTBs are seeing pan out. Grim.
 
Last edited:
What I'm trying to say, probably not very well, is it's really tough getting on the housing ladder no matter what era you are looking at. It's tough and you have to make sacrifices. You have to really want it.

I know for fact it was tough for my parents back in the day too.
 
IvanDobskey said:
I just see lots of people in their twenties driving top of the line cars. How do they afford these?
Click to expand...

They're likely the wealthy ones, or come from well-off families. The fact that wealthy, young people exist, has no bearing on the issues that effect the majority of younger people.

Anecdote like this can be quite misleading and unrealiable at best. It's quite possible that for every 20-something driving around in a new Mercedes that you noticed, you actually saw 1000 others driving around in bangers; they just wouldn't have stood out enough for you to consider them.
 
Last edited:
IvanDobskey said:
No bitterness here.

I just see lots of people in their twenties driving top of the line cars. How do they afford these?

I was driving round in a knackered old rover in my twenties and early thirties :p
Click to expand...
With respect, you just basically described bitterness.

Or at least jealousy.

It's also anecdotal beyond any use, you don't know either a) they're in their twenties or b) they don't own a house.

So it's completely irrelevant.

You've also completely ignored the fact that price to earnings has doubled making it effectively twice as hard.
 
matt100 said:
With respect, you just basically described bitterness.

Or at least jealousy.

It's also anecdotal beyond any use, you don't know either a) they're in their twenties or b) they don't own a house.

So it's completely irrelevant.

You've also completely ignored the fact that price to earnings has doubled making it effectively twice as hard.
Click to expand...
I'm not bitter or jealous, I just made my choice on where I wanted to put my money :)

That was my choice, no regrets.

I just had to wait longer to be able to have nice things.
 
Last edited:
IvanDobskey said:
What I'm trying to say, probably not very well, is it's really tough getting on the housing ladder no matter what era you are looking at. It's tough and you have to make sacrifices. You have to really want it.

I know for fact it was tough for my parents back in the day too.
Click to expand...

It is much tougher now.

You can fairly say many people don't help themselves by wasting money.

But let's say you don't.

A single income now is nigh on impossible in much of the UK. And actually impossible in some parts. Or on an average salary.

How many people live in one income households now in a relationship? I don't know any! Not a single one!

My mum didn't need to work. She did a bit but she didn't need to. 3 kids. Etc. That is basically unheard of even on a good salary without a leg up.
 
413x said:
We nearly pulled out of this purchase as bought pre covid. Ie sale was going through a month before we were all sent to WFH.

I was absolutely convinced prices would tank due to job losses. And we'd put an offer in over the asking (it was OIEO sale) so high risk of negative equity.
I was sure covid was going to be bad when others were saying it was going to blow over.

If we had been early stages I'd have pulled out. But we were so far in, and that's the only reason I carried on.

I think I'd have been right.. Except for furlough and stamp duty break. Never expected that. Couldn't believe it.

This (as we all know) rocketed house prices.


This house went from 260 to 320 pretty quickly.
That's an extra 60k. That's more than our entire deposit.. Added in a year!

So we'd have been priced out... In a year! That's the sort of thing FTBs are seeing pan out. Grim. p3}
Click to expand...
I was in a similar situation, I guess everyone has a choice to make at the time and there’s always a reason not to do it.

Mine was down to Brexit, as it was unknown at the time how it would affect the housing market and interest rates.

Normally when interest rates are higher then house prices stagnate or even lower, you end up paying roughly the same in the end regardless.

We just in this weird situation as everyone’s life has changed in general after covid, where people are spending more time at home either with working from home or just prefer it, so those who can will pay that little bit more for what they deem as a better house than they are living in at the moment.

Heck, I’m thinking of moving just to be in a different location..
 
slinxy said:
I was in a similar situation, I guess everyone has a choice to make at the time and there’s always a reason not to do it.

Mine was down to Brexit, as it was unknown at the time how it would affect the housing market and interest rates.

Normally when interest rates are higher then house prices stagnate or even lower, you end up paying roughly the same in the end regardless.

We just in this weird situation as everyone’s life has changed in general after covid, where people are spending more time at home either with working from home or just prefer it, so those who can will pay that little bit more for what they deem as a better house than they are living in at the moment.

Heck, I’m thinking of moving just to be in a different location..
Click to expand...

Yes. If I had know I'd be full time WFH no way I'd live here.
I'm also planning to move in 2 years hopefully abroad. But if that doesn't pan out then to rural Wales.

I live near a city but not in. And it's a bit rough round here. We chose a nice house in a rough area to get detached and a garden.

But it's too far from city to walk. But not far enough to be "countryside". Worst of both worlds really.


Like you my salary has jumped from 30 to 50+ but just after buying house, typical, could have done with that for a deposit. And money is thus no issue. Gf is on 32 I think. So not at much. But household income is much much higher.

Like you. My world is very different to pre covid
 
Last edited:
413x said:
Yes. If I had know I'd be full time WFH no way I'd live here.
I'm also planning to move in 2 years hopefully abroad. But if that doesn't pan out then to rural Wales.

I live near a city but not in. And it's a bit rough round here. We chose a nice house in a rough area to get detached and a garden.

But it's too far from city to walk. But not far enough to be "countryside". Worst of both worlds really.


Like you my salary has jumped from 30 to 50+ but just after buying house, typical, could have done with that for a deposit. And money is thus no issue. Gf is on 32 I think. So not at much. But household income is much much higher.

Like you. My world is very different to pre covid
Click to expand...

Have you considered van life? If I was working full time at home, I would be seriously considering it. Sadly I’m two days in the office and there’s other policy reasons why I can’t do it at my current job.

But if all went well, I would rent out my current house but not sell, as it will be too difficult to get back into the market.
 
slinxy said:
Have you considered van life? If I was working full time at home, I would be seriously considering it. Sadly I’m two days in the office and there’s other policy reasons why I can’t do it at my current job.

But if all went well, I would rent out my current house but not sell, as it will be too difficult to get back into the market.
Click to expand...

Have thought about it. But I think it would be too much. Ie just too difficult especially in winter. But yes. It really opens some doors.

But that's a huge step

Should be buying a van in next month so should be able to try what's it like.
 
Last edited:
IvanDobskey said:
I just see lots of people in their twenties driving top of the line cars. How do they afford these?
Click to expand...

Base spec badges on cheap PCPs.

Even the 2nd hand car market isn't like we had it growing up, the banger DIY that just scrapes through it's MOT isn't such a thing nowadays.

Sythe79 said:
People need to stop with the young people just waste their money excuse, they just waste their money on different things. 40 years ago the town I grew up in had 12 pubs, it's now got 2. every town even fairly small ones had at least one nightclub and big cities had multiple superclubs.

How many people back then bought albums for £20 a pop, for example, instead of downloading the music for free and saving for a house ?
Click to expand...

Also we are now a service/consumer ecomony to a far bigger degree than prevously. If everyone stopped buying all this crap, the economy would crash anyway :p
 
I was asked if I could afford my first house today and I've had a quick look.
Purchase price £180,000-£200,000
Deposit £20,000
My wage £27,000(minimum +overtime)
Wife's wage £22,000(minimum)
Term 25-30yrs
Offer from building society £200,000-£218,000
Buying as a couple as we did in 81, yes it's feasible.
Buying as single, no not even in 81
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom