[Finance] Buy to let mortgages

[LamieRobertson]

There is no doubt that anyone who bought pre 2000s had it easier. The simple fact is that ave salary back in the 80s 90s even before was about 3/4 times the ave house price. This is just counting. Nowadays the ave house in the SE is about 400k (https://www.zoopla.co.uk/house-prices/south-east-england/) and the average salary in the SE is about 30k. That is over 10 multiples... Like i said this is just counting and facts.

Fun fact: If the price of food had risen as quickly as the price of houses over the last 40 years, we would now be paying more than £50 for a single chicken (https://www.bbc.co.uk/news/business-21365920)

Ay...think you are a tad off the mark there ...what do you think the average salary and house price was say back in the 80’s

 

[SK1NT]

Ay...think you are a tad off the mark there ...what do you think the average salary and house price was say back in the 80’s

How so? 1980... average wage 6k ave house price 20k... i can post the data if needed.

 

[LamieRobertson]

How so? 1980... average wage 6k ave house price 20k... i can post the data if needed.

Interesting I guess depends what region .....I’ve a less than average house (I think) and it was 48k in 1986.....anyway your post reads average wage 3/4 times average house price ...that’s what confused me

 

[SK1NT]

My parents were both at the first rung of their career ladders earning below the ave annual salary at the ages of 21 and yet they still managed to buy a 2 bed terrace. Who as 21 can afford a 2 bed terrace with no deposit.

It would be a brave man to argue that things aren't harder now to buy a house.

 

[SK1NT]

Interesting I guess depends what region .....I’ve a less than average house (I think) and it was 48k in 1986.....anyway your post reads average wage 3/4 times average house price ...that’s what confused me

Sorry i just quickly replied with what i had read but could be exact on... either way you know what i mean... it is much harder now.

 

[LamieRobertson]

Sorry i just quickly replied with what i had read but could be exact on... either way you know what i mean... it is much harder now.

I know exactly what you mean

 

[GingerBeerMan]

How can anyone argue it's not harder to buy a house in modern times? BTL is a huge part of the problem. I don't agree with calling people scum but I do agree with outlawing BTL over 3 properties. What good does it do this country to have one person owning 4,10,20+ houses? It just drives up houses prices, puts people in a cycle of perpetual renting and reduces disposable income for the general populace hence reducing economic activity as all the GNI is funneled to a select few.

As for the 'i worked hard to buy my houses' arguement, do you not think most people work hard in their life? In my experience people who wheel out this old line are people that don't realise how lucky they have been in life with upbringing/education/financial assistance/luck and many other things.

Banning BTL and multiple house ownership would make this country far more fair, which is what everyone wants, no?

 

[mikeyjh]

My parents were both at the first rung of their career ladders earning below the ave annual salary at the ages of 21 and yet they still managed to buy a 2 bed terrace. Who as 21 can afford a 2 bed terrace with no deposit.

It would be a brave man to argue that things aren't harder now to buy a house.

I'll be brave Actually not that brave - It probably is somewhat harder to buy a house now that it was, say, in the 80s but I will counter your fag packet calculations with my own..... Something important you're missing is the impact of interest rates. If we take rates of 3% today and compare with 13-14% for this week in 1985 it starts to make the figures look a bit different. Roughly speaking, taking average salary and average house prices for the periods, today mortgage payments would be 45% of your gross salary, in 1985 it would be 43.7%. Obviously there are countless other things to factor in, the cost of living (more expensive in 1985), the deposit (more difficult now, no doubt), our lifestyles etc, but it's not as simple as comparing the prices then and now. People didn't just snap up houses willy nilly. FYI I was still at school getting 50p a week pocket money so life was definitely simpler then!

 

[Uncle Spielberg]

If anyone is thinking of doing a re mortgage or new mortgage act fast, west brom ceased doing new re mortgages yesterday I expect other lenders may follow suit soon

 

[Diablo]

Yawn. Heard this consustly for the last umpteen years. Yes prices go up and fall but never fall anywhere near they rise. If you are after a quick quid, no. But if you are after a long term investment, then definitely.

I bought my current house in 2008 just before the last credit crunch. It lost 20% of its value in a year. 12 years later its worth double what we paid for it.

If you`d bought a year later it would now be worth 2.5 times what you`d paid for it as well as you having the 20% to buy something else !

 

[Farehamseagull]

If anyone is thinking of doing a re mortgage or new mortgage act fast, west brom ceased doing new re mortgages yesterday I expect other lenders may follow suit soon

Yep. The emails coming from the smaller and specialist lenders are alarming. Secured loan market also disappearing rapidly.

Also seem to have a few applications now at a complete stand still as physical valuations have all been cancelled so not sure what will happen going forwards, especially with buy to lets.

 

[Uncle Spielberg]

Yep. The emails coming from the smaller and specialist lenders are alarming. Secured loan market also disappearing rapidly.

Also seem to have a few applications now at a complete stand still as physical valuations have all been cancelled so not sure what will happen going forwards, especially with buy to lets.

Yes it is very bleak. The Housing Market is in lockdown as well

 

[Jospeh]

For your totally incorrect view that I was "lucky" to be born when house prices were cheaper, I would like you to know that I bought my first house when my salary was 9k in the early nineties and interest rates were in double figures. I maxed out credit credit cards to pay the deposit and lived with minimal furniture for 6 months as I couldn't afford anything to sit on.

You're not listening. You have a massive bee in your bonnet about not being able to afford to buy a house and your response is to abuse people like me who are actually providing a service. Perhaps you don't think calling someone scum is abusive. I do. You don't know me, know nothing about me other than the things I have mentioned on this thread and are in no position to pass personal judgements.

With an attitude like yours, its no wonder we live in the society we are in.

The fact you're saying you bought your first house when your salary was 9k just proves my point When you bought your first house in the early nineties the average house was 4x the average wage. It is now 8x the average wage.

You're wrong about my personal circumstances so I have no bee in my bonnet about being unable to buy a house. Unlike you I have a higher set of ethics and understand we live in a society and housing should not be for speculation. You are using exploiting poor people making it impossible for those people to achieve the same standard of living you have, and that is what makes you scum. I will not apologise for holding that opinion. You obviously do not agree but the fact you're so upset about being labelled that suggests something in your subconscious tells you it's wrong.

 

[Jospeh]

Jospeh, the world isn't fair, although current events are proving to be a bit of a leveller. Ranting at random people on a messageboard is not going to change that. There is absolutely a need for rental property (incidentally I/we own one house still mortgaged that we live in). Not only do you have to contend with high rents, you also face competition from other young people, who have famiy members in a position to help them financially. So what can you do about it?

Your £26k is an average figure,it includes people at all stages of life. This includes those with childcare or elderly dependents who are limited in the number of hours they can work a week. What is your excuse? If you want what other people have are you prepared to work 60-70 hours a week, whilst you are young and relatively free of ties?

Grafting will help you get a deposit, it will also demonstrate to employers that you are someone who takes responsibility seriously and guess what the breaks will come, maybe your hourly rate will increase and you can then cut your hours. You don't need some old fart telling you how they did it back in the day, after all it was easy back then, but guess what?,,,

You're completely wrong about my circumstances so no need for the condescension

 

[Lower West Stander]

The fact you're saying you bought your first house when your salary was 9k just proves my point When you bought your first house in the early nineties the average house was 4x the average wage. It is now 8x the average wage.

You're wrong about my personal circumstances so I have no bee in my bonnet about being unable to buy a house. Unlike you I have a higher set of ethics and understand we live in a society and housing should not be for speculation. You are using exploiting poor people making it impossible for those people to achieve the same standard of living you have, and that is what makes you scum. I will not apologise for holding that opinion. You obviously do not agree but the fact you're so upset about being labelled that suggests something in your subconscious tells you it's wrong.

Seriously?

I mean seriously?

 

[Farehamseagull]

Birmingham Midshires, Halifax and Scottish Widows have just pulled all products over 60% loan to value for purchases and remortgages on residential and buy to let.