tag:blogger.com,1999:blog-1141932539860553199.post8143970985236365147..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Schrödinger's Housing - affordable and unaffordable at the same timeMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-1141932539860553199.post-73817589390997777382021-07-04T12:59:44.382+01:002021-07-04T12:59:44.382+01:00L, B, ethics is easy. Always ask yourself, how wou...L, B, ethics is easy. Always ask yourself, how would it look if this came out in court?Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-47993921305369316352021-07-02T17:46:39.368+01:002021-07-02T17:46:39.368+01:00This is what happens when people are no longer bro...This is what happens when people are no longer brought up to think ethics matter, idiots try to fill the gap with legislation. Of course it's going to fail, because those who don't care about ethics don't care about legislation either.<br />Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-2202439811892350912021-06-30T13:44:20.868+01:002021-06-30T13:44:20.868+01:00B I have just been reading this https://www.fca.or...B I have just been reading this https://www.fca.org.uk/publication/consultation/cp21-13.pdf<br /><br />The 'onion of stupidity' is apt, but you'd need a whole peleton of French onion sellers to cover all of the stupidities.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-77936758136892281512021-06-30T13:41:35.984+01:002021-06-30T13:41:35.984+01:00MW. It's not that 'decent' of me. Mor...MW. It's not that 'decent' of me. Mortgage work is tiresome. People don't want a mortgage, they want a house. And not enough of them, as in hardly any of them, get troubled by borrowing squillions to buy a commodity house. Gone are the days when the average mortgage broker could actually make a difference (IMHO)<br /><br />Plus there are those parents who take out an equity release scheme to give their children the deposit....double win for the banks.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-51749649475587694572021-06-30T13:39:44.006+01:002021-06-30T13:39:44.006+01:00Mark, that's a great concept, the Onion of Stu...Mark, that's a great concept, the Onion of Stupidity.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-34511065718380129352021-06-30T12:51:41.625+01:002021-06-30T12:51:41.625+01:00L, very decent of you.
TB, good point but it'...L, very decent of you.<br /><br />TB, good point but it's worse than that. Back in the day, my parents and inflation combined could pay off the mortgage in ten or fifteen years. I paid mine off between 1998 and 2008.<br /><br />B, another good point. For every layer of stupidity you peel away, there's another one underneath it.<br /><br />Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-41441685378870242242021-06-30T10:33:47.196+01:002021-06-30T10:33:47.196+01:00B. Snort.
P.W. Traditionally 3 x gross. Very ro...B. Snort.<br /><br />P.W. Traditionally 3 x gross. Very roughly all house ownership costs should not exceed one weeks income. That is mortgage payment. Building and contents insurance. Life insurance and council tax should not sum to > 1 weeks net income. That's my 'safe' ratio.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-68706486504654816222021-06-30T08:09:13.180+01:002021-06-30T08:09:13.180+01:00"Well, duh. The flipside of affordable monthl..."Well, duh. The flipside of affordable monthly payments is paying a massive deposit and vice versa."<br /><br />There is that, but, even more duh, if low interest rates mean you can borrow up to five times your salary, then average house prices are going to be five times the average salary, but the deposit remains at the same percentage, so if the average house price is £200,000, then the average salary is £40,000 and the average 10% deposit is £20,000, or half the average salary. If you could only borrow three times your salary, then the average house price would be £120,000 and the average deposit would be £12,000 or 30% of the average salary.<br /><br />L, he's not allowed to make that point, that's classified information.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-19785601364348517162021-06-29T22:18:29.922+01:002021-06-29T22:18:29.922+01:00@L, 3x main income post all taxes?@L, 3x main income post all taxes?Piotr Wasikhttps://www.blogger.com/profile/05460291916106181718noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-7443755390992448952021-06-29T22:06:29.766+01:002021-06-29T22:06:29.766+01:00Not forgetting life time costs are massively highe...Not forgetting life time costs are massively higher now. A couple of generations ago, a £900 per month mortgage would diminish in real terms quite quickly and be paid off in 25 years or less.<br /><br />Now, a £900 per month mortgage will barely deflate at all thanks to awful salary growth, and payment durations are being extended to 35 years or longer.Turnbull2000https://www.blogger.com/profile/16876072235135342437noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-7394913767935862342021-06-29T19:05:53.358+01:002021-06-29T19:05:53.358+01:00FYI I own and run a retail FS business. The whole...FYI I own and run a retail FS business. The whole 'affordability' thing is bonkers. You're looking at some lenders using income ratios of 5 x and above. This is mad. It only 'works' whilst interest rates are 'wrong'. That is artificially low. Typically historic mortgage rates are in the range of 6% ish. +/- 1%. Earnings ratios were set at 3 x main income + 1 x second income. Maybe go to 3.5 + 1. That's 'safe'. We have dropped mortgage work, mostly. I am not taking part in this insanity. (Which is commercially daft BTW as the procuration fees aka commissions are generous. You always pay for your principles).<br /><br />And just don't start me on equity release...Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-45949253533110584212021-06-29T17:30:55.014+01:002021-06-29T17:30:55.014+01:00L, that's the most obvious point.
S, agreed. ...L, that's the most obvious point.<br /><br />S, agreed. Affordable is a crassly misused word.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-52964366292866438562021-06-29T16:27:13.819+01:002021-06-29T16:27:13.819+01:00Also, there is the scam of how 'affordable'...Also, there is the scam of how 'affordable' is defined, i.e. by reference to local sizes of mortgages and rents. The proles who are needed to serve the rest will not get a look into well-to-do areas, unless they sleep x to a room or endure a long commute.Sackersonhttps://www.blogger.com/profile/17284329249862764601noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-33270027745259582942021-06-29T15:26:10.529+01:002021-06-29T15:26:10.529+01:00Quite why he does not pick up that house prices ar...Quite why he does not pick up that house prices are high BECAUSE of 'low' interest rates defeats me. Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.com