O/T Bank of England rates rise to 0.75%

Discussion in 'Bulletin Board' started by JamDrop, Aug 2, 2018.

  1. hav

    havana red1 Well-Known Member

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    Back then though things were produced differently and the way we bought that produce was different. When i was a child there was only one supermarket in barnsley and that was small compared with today's stores. The majority of people shopped at their local store, butchers etc. The reason why chicken's are now so cheap is because there is a huge market supplying demand. So many items then would have cost more than now as a consequence of production/market availability. Houses of course are a different proposition altogether and we have an acknowledged shortage. My daughter is currently renting and pays 600 per month which again is a hyper-inflated amount. I know growing up we had little spare cash so it wasn't easy then either but yes people could far more easily get a mortgage.
     
    Last edited: Aug 2, 2018
  2. hav

    havana red1 Well-Known Member

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    I'm afraid i don't quite get what you're saying? Where does 1977 come into this too?
    Ps. I've had 3 migraine's over the last 2 days so i'm still a bit fuzzy.
     
  3. Sco

    Scoff Well-Known Member

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    You'd need to earn upwards of 80k to borrow 300k for a house over 25 years. Probably nearer 100k to get a decent deal.
     
  4. Jul

    Julian Broddle's Perm Well-Known Member

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    There are several other factors affecting property prices too, however.
    Low interest rates for savers and pensions not yielding the returns that were promised/forecast leads many folk with moderate savings to buy a 'renter', ensuring their capital makes them more money (through rental income) whilst safeguarding their initial outlay as long as house prices are on the rise.
    I genuinely know of four houses, on the same street in Doncaster, that all sold in one go, to a wealthy Greek bloke, via a telephone auction bid, without setting foot in the country. The selling agent told me this is commonplace as the few wealthy Greeks (and this applies to other nationalities) see their money as safer in British property than in a Greek banks as austerity threatened a 40% savings tax.
    So your days of a £20k starter home are long gone as the landlords are swallowing these up, driving up the prices across the board.
     
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  5. Sim

    Simon De Montforte Well-Known Member

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    Banks and Building Societies are responsible for the inflated house prices. When I bought my first house in the 80s you could only borrow 2.5 times your salary plus 0.5 times the wife's wage. You also had to pay a minimum 10% deposit. I was on £5k a year so between us we could afford a house in the £14000 range which was a semi back then. The loanees over the years have increased this to 5,6 and even 7 times your salary with 100% mortgages hence keeping house prices artificially inflated. Back in the 80s we used to work on 1 weeks wage pays the mortgage. Not sure what it is now but I would suspect it's double that.
     
  6. Mark Stephenson

    Mark Stephenson Well-Known Member

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    That is not actually true Scoff - some lenders will increase the lending multiple to x5 if you earn more than 50k which would mean you would need to earn 60k to facilitate a 300k loan - the lenders determine how much they will lend on different variables, one being the amount you earn - this would depend on the ltv though (loan to value) - some lenders would want to see this at 25pct, while others will consider it for less -

    it is the same with other elements related to salary - overtime, bonus, commission etc - some lenders will take this at 100pct and add it to the salary so the multiple could be increased, some will only take half
     
  7. Wat

    Watcher_Of_The_Skies Well-Known Member

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    :rolleyes:
     
  8. Tek

    Tekkytyke Well-Known Member

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    My daughter left Barnsley College after obtaining a BTEC, was accepted at Uni but decided to get a job and have a gap year. During that time she got a low paid job but with prospects and eventually did not go. We allowed her to stay at home rent free provided she saved as much of her money as she could . Although far from wealthy, we helped out giving her a car to commute etc. Through commitment, a good work ethic and making a few personal scrifices, she rapidly increased her salary and position within the company. Within 3 years she had saved enough deposit to get a reasonable mortgage on a small terrace in Barnsley and after meeting someone, marrying they were jointly able to save together to get a decent deposit and last year bought a £250k house together . They also had a baby. Their household income is nowhere near £80k and he has a student loan to repay. They both made sacrifices early on and are now reaping the benefits. It can be done if you are determined enough. Plenty of people from impoverished backgrounds have and still do.
     
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  9. Sta

    Stahlrost Well-Known Member

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    My point was about single people, but I didn't make it clear enough. Good luck to your daughter and her new family.
     
  10. Tek

    Tekkytyke Well-Known Member

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    No you were clear, I was not. She did manage to get on the 'housing ladder' as a single person, long before she met her current husband. which was my point. Sorry it got lost in my usual 'war and peace' style post. :(
     
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  11. troff

    troff Well-Known Member

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    Yes and she did so by you supporting her by letting her live rent free whilst in employment.

    Not all kids have parents with the means to do that. It is also the case that she made sacrifices, your words, to get to the point that she could buy a home.

    Having a full time job and little debt were the only real pre-requisites in times gone by.
     
  12. Tyk

    Tyketical Masterstroke Well-Known Member

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    Lol. And bought your house for ten bob and a blackbirds egg. Anyone who doesn’t think eighteen year olds now have it harder than any generation in living memory is kidding themselves.
     
  13. hav

    havana red1 Well-Known Member

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    Don't think anyone on 40k should be looking to buy a house worth 350k ( they wouldn
    Some yes but others not.
    My son left school with pretty much eff all but at 19 years of age is on 29k a year whilst still living with us: currently pissing much of this up a wall in magaluf. I also have 3 or 4 colleagues at work 19 to 22 year olds who are earning 20k plus whilst still living at home with their parents.
    None of these kids will have experienced ice on the windows inside of their house in winter nor had to make a coal fire before any heat was forthcoming.
    Some people are just luckier than others i guess and i would suggest that's always been the case.
     
    Last edited: Aug 3, 2018
  14. bfc

    bfc1001 Well-Known Member

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    https://www.housing.org.uk/blog/is-there-a-housing-crisis-in-europe/

    Good article this . Appears this whole housing problem is not just a UK problem . It's rinse and repeat across Europe . One stat that stands out is of all the money spent by government on housing 85% goes on housing benefit , and only 15% on New homes . In other words higher property prices leads to higher rents /mortgages means less money left over to build new homes . Housing shortages then leads to even higher prices leading to the circle jerk we currently find ourselves in .
     

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