Reply to: Uber Doomed: typical homeowner is paying £135 more a month for their mortgage

[Iron Condor]

Just to make you all really sick, my brother started buying his flat in Coventry in 1983. Its a two-bed ground-floor in a low-rise block in a not brilliant but not awful part of town. Price £13k. I think he's paying less than £60 pcm.

My brother in law bought a 3 bed terrace house for 24K in wolverhampton in 2001. The same year i bought my house in west london for 260K. I could have bought half his street for that back then.. He sold up in 2006 for 65K. My house in london didnt go up anywhere near that much percentage wise..

He was paying £130 a month mortgage, and he still thought a mortgage+bills+food+clothes+banger was too much for his minimum wage salary..he has now moved back in with his parents..

[cojak]

'The cost of the typical home loan has soared to a seven-year high with families facing mortgage bills more than 20 per cent higher than two years ago as the effects of the credit crunch take their toll.

Bank of England figures show that the typical homeowner is paying £135 more a month for their mortgage than last year, prompting fears of a rise in home repossessions as people struggle to pay debts.'


http://www.telegraph.co.uk/news/main.../nrates107.xml


ouch 135 pound more a month than last year, 1500 quid a year not being spent on other things, ouch, feel that economy slow down


Milan.

[smug]

Only if they've got one...

[smug/]

[milanbenes]

rob why would that story make anyone here sick ?

is your bro' still in the flat ? if he is I guess he must be feeling sick by now.

Milan.

[oracleslave]

Just to make you all really sick

Coventry

[robnjc]

Just to make you all really sick, my brother started buying his flat in Coventry in 1983. Its a two-bed ground-floor in a low-rise block in a not brilliant but not awful part of town. Price £13k. I think he's paying less than £60 pcm.

[Ardesco]

I'm sure I paid 15%+ in the 80's.

Of course the problem these days is exacerbated by the high multiples allowed when calculating. I'm sure my first mortgage was based on a max of 2.5x mine + 1x the wife's salary.

I wish I could buy a house for £60,000

[robnjc]

What’s all the fuss about? My mortgage rate was 13% in the early 90's... it's cyclical and will go up as well as down, I didn't see too many stories about how much extra cash people had when it was at a low? If people have been too greedy and overstretched themselves then they only have themselves to blame.

In real terms almost everything is cheaper than it was 10 years ago yet public opinion says things are more expensive??

I'm sure I paid 15%+ in the 80's.

Of course the problem these days is exacerbated by the high multiples allowed when calculating. I'm sure my first mortgage was based on a max of 2.5x mine + 1x the wife's salary.

[gingerjedi]

What’s all the fuss about? My mortgage rate was 13% in the early 90's... it's cyclical and will go up as well as down, I didn't see too many stories about how much extra cash people had when it was at a low? If people have been too greedy and overstretched themselves then they only have themselves to blame.

In real terms almost everything is cheaper than it was 10 years ago yet public opinion says things are more expensive??

[Iron Condor]

Since when was a 200K mortgage typical?. Maybe for Telegraph readers its typical. Probably only 10% or less of mortgage holders have mortages that big...

[ChimpMaster]

You might laugh, but with CPI being based on the price of a DVD player imported from China - this too will soon go up!

[BrowneIssue]

It's not the £135/month in isolation, but this combined with double digit % rises in gas, electricity, petrol/diesel, train fares, basic food stuffs, council taxes.

Bundle this in with rising debt costs and you have a recipe for mass bankruptcy and reposessions.

Phew! It's a good job that inflation is so low, otherwise things would be bad.

[sasguru]

But anyhow, the solution is to get into BTL.

HTH

Aye. All these repossessed are going to have to move to rental.
Boomed!!

[DimPrawn]

Re: the recent thread where a number of people here thought that £1000 a year was not a lot of money.

It is a lot of money to much of the population. £135/month will hurt many, especially when combined with soaring inflation in energy and foodstuffs.

It's not the £135/month in isolation, but this combined with double digit % rises in gas, electricity, petrol/diesel, train fares, basic food stuffs, council taxes.

Bundle this in with rising debt costs and you have a recipe for mass bankruptcy and reposessions.

But anyhow, the solution is to get into BTL.

HTH

[BrilloPad]

house prices are a matter of opinion - debt is a matter of fact

[ChimpMaster]

Re: the recent thread where a number of people here thought that £1000 a year was not a lot of money.

It is a lot of money to much of the population. £135/month will hurt many, especially when combined with soaring inflation in energy and foodstuffs.