Reply to: If you were forming a political party what manifesto commitments would you make?

[Old Greg]

Average weekly wages in the UK

Can we see that chart denominated in Euros?

[BlasterBates]

Average weekly wages in the UK

[BlasterBates]

Whilst comparing it to inflation may seem to make sense actually you should compare against wages when considering affordability.

Housing affordability in England and Wales - Office for National Statistics

Few people have been getting wage rises over the last few years.

Not at all.



Mortgage payments are currently at 32% of mean take home pay. In 1980's it was consistently higher, in 1989 when interest rates shot up to around 15% it was 55%.

[Zigenare]

Make CUK a safe space for gammonflakes.

If that's what you really want.

[BrilloPad]

I will allow euthanisation of all the loud mouthed, inconsiderate twats that inhabit these isles, thus reducing population by at least 50%.

Wrong! 48%.....

[Diver]

what good is that going to do, where are those with poor credit going to live?

Best way to fix BTL is to make the returns less attractive by building more homes or have less people wanting them.

Force tenants to take out a mortgage and buy their BTL Rentals. I could get rid of mine then and retire and relax in comfort

[vetran]

But most importantly I will allow euthanisation of all the loud mouthed, inconsiderate twats that inhabit these isles, thus reducing population by 48%.

FTFY

[DimPrawn]

I would remove or reduce student loans for those that study STEM subjects.

I would allow employers tax breaks for non-vocational training and apprenticeships.


But most importantly I will allow euthanisation of all the loud mouthed, inconsiderate twats that inhabit these isles, thus reducing population by at least 50%.

[vetran]

House prices are lower than they were 15 years ago



House prices will drop when the interest rates go up, always have and they always will. You bought at a time that was very unusual just after a housing crash and the interest rates had just dropped. House prices shot up over a 10 year period, and over the following 15 years dropped in real terms.

Whilst comparing it to inflation may seem to make sense actually you should compare against wages when considering affordability.

Housing affordability in England and Wales - Office for National Statistics

Few people have been getting wage rises over the last few years.

[DimPrawn]

3 day working week.

I think this would make sense, I'd even be happy with a 10 hour day on those 3 days.

[BlasterBates]

FTFY

If you are trying to say that because interest rates are low people are risking more debt than is sensible then unfortunately you are right. Its a balloon of debt and will end in trouble however the fact there is a shortage of stock may cushion it.

House prices are lower than they were 15 years ago



House prices will drop when the interest rates go up, always have and they always will. You bought at a time that was very unusual just after a housing crash and the interest rates had just dropped. House prices shot up over a 10 year period, and over the following 15 years dropped in real terms.

[vetran]

I think I am being condescending but really I didn't explain my point very well.

FTFY

If you are trying to say that because interest rates are low people are risking more debt than is sensible then unfortunately you are right. Its a balloon of debt and will end in trouble however the fact there is a shortage of stock may cushion it.

[BlasterBates]

so you don't repay the capital at all? The amount of interest you pay has no relation to the capital?

From your calculator
you borrow £200,000 at 1.6% (the default) you pay back £242,000


you borrow £100,000 at 3.2% you pay back £145,000



so doubling the price means you pay nearly 100k more even though the interest stays the same. Yes you pay 100% more interest if you double the interest rate but that is obvious.

However as to your point about affordability the doubled capital nearly doubles the repayments. Both mortgage examples have about 45k iinterest

We're getting there. Here are the interest rates in the 1970's and 1980's.

[vetran]

Most of what you pay for a house when you buy is interest.

Mortgage calculator

Double the interest rate and see what happens to your mortgage.

so you don't repay the capital at all? The amount of interest you pay has no relation to the capital?

From your calculator
you borrow £200,000 at 1.6% (the default) you pay back £242,000

Your monthly payment
£809.30

you borrow £100,000 at 3.2% you pay back £145,000

Your monthly payment
£484.68

so doubling the price means you pay nearly 100k more even though the interest stays the same. Yes you pay 100% more interest if you double the interest rate but that is obvious.

However as to your point about affordability the doubled capital nearly doubles the repayments. Both mortgage examples have about 45k iinterest

[BlasterBates]

do please explain your assertion.

feck me glad you don't go anywhere near figures. Its like having Assgoo back.

Most of what you pay for a house when you buy is interest.

Mortgage calculator

Double the interest rate and see what happens to your mortgage.